BENTON HARBOR, Mich., July 20 /PRNewswire-FirstCall/ -- Whirlpool
Corporation (NYSE: WHR) announced today that second-quarter 2007 net sales
increased 3 percent to
Earnings from continuing operations for the second quarter reflect strong operating profit improvement within each of the company's international business segments, the benefit from efficiencies associated with last year's acquisition of Maytag, productivity improvements, strong cost controls, favorable currency and a lower effective tax rate. Results were adversely affected by significantly higher material costs, lower industry shipments within the United States , increased brand investment and a pension curtailment charge. Each regional business increased year-over-year operating profit margins during the quarter.
"Our international businesses continue to execute extremely well and we are pleased with their financial performance through the first half of 2007," said Jeff M. Fettig, chairman and chief executive officer of Whirlpool Corporation. "While weak industry demand and significantly higher material prices in the United States have unfavorably impacted our results for the past year, we are positive about the trends exiting the second quarter and believe demand will begin returning to moderate growth levels in the second half of this year."
During the quarter, the company repurchased
Whirlpool North America reported second-quarter revenue of
Operating profit of
Based on current economic conditions, the company continues to expect full-year 2007 U.S. industry unit shipments to decline approximately 2 to 3 percent.
Whirlpool Europe reported record second-quarter revenue and operating
profit. Revenue increased 10 percent to
Operating profit of
Based on current economic conditions in Europe , the company continues to expect full-year industry unit shipments to increase approximately 2 to 3 percent.
Whirlpool Latin America reported record second-quarter revenue and
operating profit. Revenue of
Record operating profit of
Based on the current economic environment in Brazil , the company continues to expect full-year 2007 appliance industry shipments to increase 15 to 20 percent.
Whirlpool Asia reported sales of
Based on current economic conditions in Asia, the company continues to expect 2007 industry unit shipments to increase 5 to 10 percent.
*During the first quarter of 2007, the company adopted changes to its segment reporting consistent with the methodology the chief executive officer now uses to evaluate each segment's operating and financial results. The company previously included the financial results for its Caribbean operations and exports of certain portable appliances to Europe within its North America business segment. The results for these businesses are now being reported within the Latin America and Europe segments, respectively. In addition, the company has reallocated certain costs previously included within corporate administrative expense to each of the respective regions. Regional results for 2006 have been reclassified to reflect these changes.
For the balance of the year, Whirlpool continues to expect strong performance within its international businesses. Increasing U.S. industry demand, acquisition efficiencies, productivity improvements and innovative Maytag product launches are expected to improve performance within North America during the second half of the year.
"We are addressing current U.S. industry demand trends and heightened
global material costs with continued new product innovation, increased
productivity throughout our global operations, as well as improving our
overall mix of business and realizing implemented cost-based price
adjustments," said Fettig. "We now expect to realize efficiencies in excess
Whirlpool continues to expect full-year 2007 earnings per diluted share
from continuing operations to be in the
Cash Flow Reconciliation
The table below reconciles projected 2007 cash provided by continuing operations determined in accordance with generally accepted accounting principles (GAAP) in the United States to free cash flow, a non-GAAP measure. Management believes that free cash flow provides shareholders with a relevant measure of liquidity and a useful basis for assessing the company's ability to fund its activities and obligations. There are limitations to using non-GAAP financial measures, including the difficulty associated with comparing companies that use similarly named non-GAAP measures whose calculations may differ from the company's calculations. As defined by the company, free cash flow is cash provided by continuing operations after capital expenditures and proceeds from the sale of assets/businesses. Free cash flow does not include proceeds from the sale of Maytag businesses. The projections shown here are based upon many estimates and are inherently subject to change based on future decisions made by management and the board of directors of the company, and significant economic, competitive and other uncertainties and contingencies.
About Whirlpool Corporation
Whirlpool Corporation is the world's leading manufacturer and marketer of
major home appliances, with annual sales of approximately
**T7 refers to the following household appliance categories: washers, dryers, refrigerators, freezers, dishwashers, ranges and compactors.
Whirlpool Additional Information:
This document contains forward-looking statements that speak only as of
this date. Whirlpool disclaims any obligation to update these statements.
Forward-looking statements in this document include, but are not limited to,
statements regarding expected earnings per share, cash flow, productivity and
material and oil-related prices, as well as expectations as to the integration
with Maytag Corporation. Many risks, contingencies and uncertainties could
cause actual results to differ materially from Whirlpool Corporation's
forward-looking statements. Among these factors are: (1) intense competition
in the home appliance industry reflecting the impact of both new and
established global competitors, including Asian and European, manufacturers
and the strength of trade customers; (2) Whirlpool's ability to continue its
strong relationship with Sears Holding Corporation in North America
(accounting for approximately 14% of Whirlpool's 2006 consolidated net sales
SOURCE Whirlpool Corporation