Whirlpool Earnings Rise 111 Percent to $95 Million

02/04/2010

BENTON HARBOR, MI -- Whirlpool Corporation announced this week that fourth-quarter net earnings rose 111 percent to $95 million during its fourth quarter. Sales of $4.9 billion increased 13 percent from the $4.3 billion reported in the fourth quarter of 2008.

Fourth-quarter operating profit totaled $199 million compared with $10 million in the prior year. Results were favorably impacted by cost reduction and productivity initiatives and increased sales volume. These favorable factors were partially offset by lower price/mix.

"In 2009, we significantly improved our global cost structure and operating performance despite a substantial decline in global demand levels," said Jeff M. Fettig, chairman and chief executive officer of Whirlpool Corporation. "In addition, we generated record free cash flow and strengthened our financial position. I am pleased with our execution in this challenging environment, and we look to build upon our progress in 2010."

FOURTH-QUARTER REGIONAL REVIEW


Whirlpool North America
Fourth-quarter sales of $2.6 billion increased 4 percent from the prior year, while North American unit shipments increased 8 percent. U.S. industry unit shipments of major appliances increased 6 percent during the fourth quarter.

The North America region reported operating profit of $136 million compared to a loss of $(20) million in the previous year. The improvement was primarily the result of cost reduction, productivity initiatives and increased sales volume. These factors were partially offset by lower product price/mix.

Based on the current economic outlook, the company expects full-year 2010 U.S. industry unit shipments to increase between 2 percent and 4 percent.

Whirlpool Europe
Whirlpool Europe reported fourth-quarter sales of $956 million, a 2 percent increase from the prior year. Excluding the effects of currency, sales declined approximately 9 percent. Overall industry unit demand during the quarter declined approximately 8 percent from the prior year.

The region reported an operating profit of $19 million during the fourth quarter compared with $2 million reported in the previous-year period. Results were favorably impacted by lower costs and higher price/mix. These factors were partially offset by lower volume.

The company expects full-year 2010 industry unit shipments to be approximately equal to 2009 levels.

Whirlpool Latin America


Fourth-quarter net sales totaled $1.2 billion, an increase of 52 percent from the prior year. Excluding currency translation, sales increased approximately 28 percent.

Operating profit totaled $138 million in the fourth quarter compared with $110 million in the prior year. The improvement in profitability is primarily related to higher sales volumes, higher productivity and favorable foreign currency fluctuations. These items were partially offset by lower monetization levels of certain tax credits and lower price/mix.

The company currently anticipates full-year 2010 Brazilian appliance shipments will increase 5 percent to 10 percent compared to the previous year.

Whirlpool Asia
Whirlpool Asia reported fourth-quarter sales of $188 million, increasing 34 percent from the prior year. Excluding the impact of currency, sales increased 27 percent. Operating profit during the quarter totaled $6 million, an increase of $3 million from the prior year. The year-over-year increase in operating profit was mainly attributable to higher unit volume and was partially offset by lower price/mix.