Contact: Christopher Wyse
616/923-3417
Christopher_Wyse @email.whirlpool.com
EXHIBIT 2
WHIRLPOOL CORPORATION SUSTAINS STRONG PERFORMANCE
IMPROVEMENTS IN SECOND-QUARTER 1997 EARNINGS
BENTON HARBOR, Mich. -- July 15, 1997 -- Whirlpool Corporation (NYSE: WHR)
said today that continued strong performance in North America and Latin America
and sustained year-over-year improvement in Europe resulted in a 23-percent rise
in second-quarter earnings.
Net earnings were $65 million for the quarter, or 86 cents per share,
versus $52 million, or 70 cents per share, in the comparable 1996 period.
Second-quarter revenues were $2.1 billion, down 7 percent from the 1996 period.
This revenue decline is directly attributable to weak air conditioner shipments
in North America and the effects of the strong dollar on currency translations
from European operations.
Year-to-date 1997 net earnings were $111 million, or $1.48 per share, on
revenues of $4.2 billion, compared with net earnings of $90 million, or $1.20
per share, on revenues of $4.3 billion for the first half of 1996.
Whirlpool's chairman and chief executive officer David R. Whitwam said that
the second-quarter financial results are consistent with the company's
expectations for solid performance improvement in 1997.
"Our performance this quarter has been led by significant improvements in
our European business, due primarily to our ability to manage costs in a tough
economic environment, while strengthening our product mix and improving our
margins," said Whitwam. "The North and Latin American businesses continued their
solid performance, while Asia's results reflect the on-going challenges of
building Whirlpool's presence in that region."
North American second-quarter unit shipments were essentially even with
last year's record levels, absent a sizable weakness in air conditioner sales
caused by cooler than normal weather conditions and high retail inventories
carried over from the 1996 season. Consumer response to new products,
- more -
[Whirlpool logo] Administrative Center, Benton Harbor, Michigan 49022
particularly Whirlpool brand free-standing ranges and built-in ovens and
KitchenAid brand dishwashers, continues to be strong.
Whirlpool Europe, counter to its industry, showed a slight improvement in
second-quarter unit shipments; sales increased 2.5 percent, in local currency,
but are down 6.7 percent when translated to U.S. dollars. Extensive new
products, which provide better margins, in combination with manufacturing
efficiencies, drove higher profits. The company expects to continue solid year-
over-year improvements despite its view that full-year 1997 industry shipments
will be down slightly from 1996 levels.
Latin American sales increased nearly 8 percent in the second quarter,
versus the same period in 1996, driven by higher unit volumes. Even though
Brazil's appliance industry slowed from last year's robust levels and
competition increased, the company maintained its market share position. Total
profit contribution from the region continues to be strong.
Whirlpool Asia, facing on-going development costs particularly related to
Chinese joint ventures, sustained a second-quarter operating loss. The company
continues to address operating issues relating to its long-term strategy in this
important region.
Whitwam said that he is pleased with the overall performance of the company
and the progress Whirlpool is making toward significant improvements in full-
year 1997 operating results.
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 about 140
countries.
###
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (UNAUDITED) File: IS10Q2Q
WHIRLPOOL CORPORATION AND SUBSIDIARIES DLR 7/11/97
THREE MONTHS ENDED June 30 Supplemental Consolidating Data
(millions of dollars except share data) ------------------------------------------------
Whirlpool Corporation Whirlpool with WFC Whirlpool Financial
(Consolidated) on an Equity Basis Corporation (WFC)
---------------------- ---------------------- ----------------------
1997 1996 1997 1996 1997 1996
---------- ---------- ---------- ---------- --------- ---------
REVENUES
Net sales $ 2,074 $ 2,229 $ 2,074 $ 2,229 $ - $ -
Financial services 43 43 - - 62 55
---------- ---------- ---------- ---------- --------- ---------
2,117 2,272 2,074 2,229 62 55
EXPENSES
Cost of products sold 1,588 1,737 1,588 1,737 - -
Selling and administrative 393 418 381 402 31 28
Financial services interest 22 16 - - 23 19
Intangible amortization 9 9 9 9 - -
---------- ---------- ---------- ---------- --------- ---------
2,012 2,180 1,978 2,148 54 47
---------- ---------- ---------- ---------- --------- ---------
OPERATING PROFIT 105 92 96 81 8 8
OTHER INCOME (EXPENSE)
Interest and sundry 4 (4) 2 (5) 1 1
Interest expense (40) (44) (38) (41) - -
---------- ---------- ---------- ---------- --------- ---------
EARNINGS BEFORE TAXES
AND OTHER ITEMS 69 44 60 35 9 9
Income Taxes 32 21 29 18 3 3
---------- ---------- ---------- ---------- --------- ---------
EARNINGS BEFORE EQUITY EARNINGS
AND MINORITY INTERESTS 37 23 31 17 6 6
Equity in WFC - - 3 5 - -
Equity in affiliated companies 24 27 24 27 - -
Minority interests 4 2 7 3 (3) (1)
---------- ---------- ---------- ---------- --------- ---------
NET EARNINGS $ 65 $ 52 $ 65 $ 52 $ 3 $ 5
========== ========== ========== ========== ========= =========
Per share of Common Stock:
Primary earnings $ 0.86 $ 0.70
========== ==========
Cash dividends $ 0.34 $ 0.34
========== ==========
See notes to consolidated condensed financial statements
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (UNAUDITED) File: IS10Q2Y
WHIRLPOOL CORPORATION AND SUBSIDIARIES DLR 7/11/97
THREE MONTHS ENDED June 30 Supplemental Consolidating Data
(millions of dollars except share data) ------------------------------------------------
Whirlpool Corporation Whirlpool with WFC Whirlpool Financial
(Consolidated) on an Equity Basis Corporation (WFC)
---------------------- ---------------------- ----------------------
1997 1996 1997 1996 1997 1996
---------- ---------- ---------- ---------- --------- ---------
REVENUES
Net sales $ 4,064 $ 4,242 $ 4,064 $ 4,242 $ - $ -
Financial services 91 89 - - 124 109
---------- ---------- ---------- ---------- --------- ---------
4,155 4,331 4,064 4,242 124 109
EXPENSES
Cost of products sold 3,124 3,300 3,124 3,300 - -
Selling and administrative 785 811 754 771 64 60
Financial services interest 42 32 - - 45 38
Intangible amortization 17 18 17 18 - -
---------- ---------- ---------- ---------- --------- ---------
3,968 4,161 3,895 4,089 109 98
---------- ---------- ---------- ---------- --------- ---------
OPERATING PROFIT 187 170 169 153 15 11
OTHER INCOME (EXPENSE)
Interest and sundry - (1) (3) (7) 3 6
Interest expense (76) (84) (73) (78) - -
---------- ---------- ---------- ---------- --------- ---------
EARNINGS BEFORE TAXES
AND OTHER ITEMS 111 85 93 68 18 17
Income Taxes 52 39 45 33 7 6
---------- ---------- ---------- ---------- --------- ---------
EARNINGS BEFORE EQUITY EARNINGS
AND MINORITY INTERESTS 59 46 48 35 11 11
Equity in WFC - - 7 9 - -
Equity in affiliated companies 46 41 46 41 - -
Minority interests 6 3 10 5 (4) (2)
---------- ---------- ---------- ---------- --------- ---------
NET EARNINGS $ 111 $ 90 $ 111 $ 90 $ 7 $ 9
========== ========== ========== ========== ========= =========
Per share of Common Stock:
Primary earnings $ 1.48 $ 1.20
========== ==========
Cash dividends $ 0.68 $ 0.68
========== ==========
See notes to consolidated condensed financial statements
CONSOLIDATED CONDENSED BALANCE SHEETS
WHIRLPOOL CORPORATION AND SUBSIDIARIES
(millions of dollars) Supplemental Consolidating Data
-----------------------------------------------------
Whirlpool Corporation Whirlpool with WFC Whirlpool Financial
(Consolidated) on an Equity Basis Corporation (WFC)
------------------------- ------------------------- -------------------------
June 30 December 31 June 30 December 31 June 30 December 31
1997 1996 1997 1996 1997 1996
(Unaudited) (Audited) (Unaudited) (Audited) (Unaudited) (Audited)
----------- ----------- ----------- ----------- ----------- -----------
ASSETS
CURRENT ASSETS
Cash and equivalents $ 172 $ 129 $ 123 $ 102 $ 49 $ 27
Trade receivables, less allowances
(1997: $46 ;1996: $45 ) 1,104 966 1,104 966 - -
Financing receivables and leases,
less allowances
(1997: $12 ;1996: $12 ) 1,302 1,400 - - 1,302 1,400
Inventories 1,097 1,034 1,097 1,034 - -
Other current assets 275 283 277 291 10 6
----------- ----------- ----------- ----------- ----------- -----------
TOTAL CURRENT ASSETS 3,950 3,812 2,601 2,393 1,361 1,433
Investments and other assets 822 830 1,110 1,113 - -
Financing receivables and leases,
less allowances
(1997: $39 ;1996: $38 ) 710 705 - - 710 705
Intangibles, net 795 870 795 870 - -
----------- ----------- ----------- ----------- ----------- -----------
2,327 2,405 1,905 1,983 710 705
Property, plant and equipment 3,757 3,839 3,736 3,820 21 19
Accumulated depreciation (2,075) (2,041) (2,063) (2,030) (12) (11)
----------- ----------- ----------- ----------- ----------- -----------
1,682 1,798 1,673 1,790 9 8
----------- ----------- ----------- ----------- ----------- -----------
TOTAL ASSETS $ 7,959 $ 8,015 $ 6,179 $ 6,166 $ 2,080 $ 2,146
=========== =========== =========== =========== =========== ===========
See notes to consolidated condensed financial statements
CONSOLIDATED CONDENSED BALANCE SHEETS
WHIRLPOOL CORPORATION AND SUBSIDIARIES
(millions of dollars) Supplemental Consolidating Data
-----------------------------------------------------
Whirlpool Corporation Whirlpool with WFC Whirlpool Financial
(Consolidated) on an Equity Basis Corporation (WFC)
------------------------- ------------------------- -------------------------
June 30 December 31 June 30 December 31 June 30 December 31
1997 1996 1997 1996 1997 1996
(Unaudited) (Audited) (Unaudited) (Audited) (Unaudited) (Audited)
----------- ----------- ----------- ----------- ----------- -----------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Notes payable $ 2,299 $ 2,157 $ 903 $ 704 $ 1,396 $ 1,453
Accounts payable 863 983 779 886 96 111
Other current liabilities 853 882 844 876 9 6
----------- ----------- ----------- ----------- ----------- -----------
TOTAL CURRENT LIABILITIES 4,015 4,022 2,526 2,466 1,501 1,570
Long-term debt 900 955 832 887 68 68
Postemployment benefits 567 563 560 557 7 6
Other liabilities 356 367 240 248 116 119
----------- ----------- ----------- ----------- ----------- -----------
1,823 1,885 1,632 1,692 191 193
Minority interests 174 182 74 82 110 110
STOCKHOLDERS' EQUITY
Common stock 81 81 81 81 8 8
Paid-in capital 253 246 253 246 26 26
Retained earnings 1,978 1,918 1,978 1,918 249 242
Unearned restricted stock (6) (7) (6) (7) - -
Currency translation adjustments (122) (76) (122) (76) (5) (3)
Treasury stock - at cost (237) (236) (237) (236) - -
----------- ----------- ----------- ----------- ----------- -----------
TOTAL STOCKHOLDERS' EQUITY 1,947 1,926 1,947 1,926 278 273
----------- ----------- ----------- ----------- ----------- -----------
TOTAL LIABILITIES AND EQUITY $ 7,959 $ 8,015 $ 6,179 $ 6,166 $ 2,080 $ 2,146
=========== =========== =========== =========== =========== ===========
See notes to consolidated condensed financial statements