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WHIRLPOOL CORPORATION
CONTACT: Whirlpool Corporation
Media: Tom Kline, 616/923-3738
thomas_e_kline@email.whirlpool.com
Financial: Thomas Filstrup, 616/923-3189
thomas_c_filstrup@email.whirlpool.com
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WHIRLPOOL CORP. CHAIRMAN AND CEO DAVID R. WHITWAM TO PRESENT
2002 STRATEGY AND PLANS TO ANALYSTS IN NEW YORK
Vitromatic Acquisition, First Quarter Outlook, and New Whirlpool Brand
Refrigerated Oven Among Topics Whitwam to Discuss
BENTON HARBOR, Mich., Feb. 26, 2002--Whirlpool Corporation (NYSE:WHR) announced
that its chairman and chief executive officer, David R. Whitwam, will meet with
analysts later today at the Global Industrial Manufacturing Conference in New
York City.
Whitwam is expected to discuss Whirlpool's global strategy and
capabilities, and highlight the company's first quarter outlook based on
improved appliance industry conditions. Whitwam also will describe a number of
recent successful product introductions, including Polara, the world's first
refrigerated range.
Whitwam will provide an overview of the company's recently announced
agreement in principle with Vitro, S.A., to acquire Vitro's stake in Vitromatic
S.A. de C.V., an appliance manufacturing and distribution joint venture in
Mexico. Whirlpool, which holds 49 percent interest in the joint venture, intends
to purchase Vitro's remaining 51 percent interest. Pending due diligence and
regulatory approvals, Whirlpool expects to purchase Vitro's stake in Vitromatic
for $150 in million cash and will assume 100 percent of the joint venture's
existing $220 million debt. Vitromatic is Mexico's second largest appliance
manufacturer with a 34 percent market share and annual sales of more than $600
million.
In his discussion of the company's strategy, Whitwam will offer details
behind Whirlpool's rise to the leading market position within the $106 billion
global appliance industry. The company's strategy has helped the Whirlpool brand
become the world's No. 1 selling home appliance brand. Whirlpool's global market
share is 40 percent higher than its closest competitor.
Whirlpool's execution of its strategy includes a global innovation effort
to introduce truly unique solutions that consumers want and value, examples of
which Whitwam will highlight at the presentation. One innovation introduced at
the International Builders Show in Atlanta earlier this month is the Whirlpool
brand Polara refrigerated range--the world's first cooking range with
refrigeration capabilities. The unique range gives consumers the flexibility of
preparing and then refrigerating food in the range for up to 24 hours before
cooking, which the Polara automatically begins and ends. The Polara is a
standard-sized range that combines Whirlpool's expertise in refrigeration with
the features found in the Whirlpool brand premium line of ranges.
Whitwam will discuss other significant innovations recently introduced by
the Whirlpool brand for North American consumers, including the Duet
front-loading clothes washer and dryer, and the Personal Valet clothes
vitalizing system.
Whitwam plans to offer additional insight to the company's strong
performance throughout 2001 and into this year. "We just completed a year of
solid operating performance in which we generated record free cash flow of $533
million, despite significant challenges in the global economic environment,"
Whitwam said before the presentation. "Given the continuing positive momentum of
our business and the unexpected strength of the U.S. appliance industry so far
this year, we expect to deliver another solid performance in 2002."
Based on the improved U.S. appliance industry conditions in January and
February, Whirlpool expects to exceed the current range of analysts' estimates
for first quarter core earnings. Whirlpool anticipates its core earnings will
increase 15-to-20 percent from core earnings of $1.10 per diluted share in the
prior year period.
In keeping with the industry improvement, Whirlpool has increased its
full-year U.S. industry unit shipment forecast to 2 percent growth. The company
continues to forecast a 5-to-10 percent improvement in full year core earnings
per share in 2002, but may revise the forecast if industry conditions continue
to strengthen.
Whirlpool's core earnings for 2002 will exclude costs to complete the
company's restructuring initiative. Net earnings for each quarter in 2002 will
include restructuring costs in amounts subject to the timing of restructuring
activities. The remaining restructuring costs are estimated to be between $100
million and $150 million for the full year.
The company announced its restructuring effort in December 2000. The total
restructuring charge is expected to be between $300 million and $350 million.
When fully implemented, the restructuring effort will yield annualized savings
of between $225 million and $250 million.
An audio replay of Whitwam's presentation and a transcript of his remarks
will be available on the company's website at approximately (time/date).
Whirlpool Corporation is the world's leading manufacturer and marketer of
major home appliances. Headquartered in Benton Harbor, the company manufactures
in 13 countries and markets products under 11 major brand names in more than 170
countries. Additional information about the company can be found on the Internet
at www.whirlpoolcorp.com.
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This news release contains forward-looking statements, as that term is
defined in the Private Securities Litigation Reform Act of 1995. In addition to
the expected appliance industry results for 2002 noted in this news release,
there are certain factors that could cause results to differ materially from
those anticipated by some of the statements made. These factors are listed in
the company's most recently filed Form 10-Q and/or Form 10-K.
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