(Source: PRNewswire)Benton Harbor, Mich., July 22 /PRNewswire-FirstCall/ -- Whirlpool Corporation (NYSE: WHR) announced today second-quarter 2009 earnings of $1.04 per diluted share compared to $1.53 per diluted share reported in the prior year. The company reported net sales of $4.2 billion, a decrease of 18 percent from the year-ago period. Excluding the impact of foreign exchange translation, the company's second-quarter sales declined approximately 10 percent.

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Second-quarter operating profit was favorably impacted by cost reduction initiatives and favorable product price/mix. These favorable items were offset by substantially lower global sales and production volumes, unfavorable foreign currency fluctuations and lower monetization of certain tax credits.

"Consumer demand for appliances was significantly lower in the second quarter, which negatively impacted our global unit volumes," said Jeff M. Fettig, Whirlpool Corporation chairman and chief executive officer. "Late last year, we took actions to restructure our business, aligning our capacity and resources to lower demand levels. Our results reflect these actions, and we will continue to execute our plans to address this volatile global economic environment."

Second-Quarter RegionAL Review

Whirlpool North America

Second-quarter sales of $2.4 billion declined 17 percent from the prior year. Excluding the effects of currency, sales declined approximately 14 percent from the prior year. U.S. industry unit shipments of major appliances (T7)* declined 14 percent during the second quarter.

The North America region reported operating profit of $120 million compared to $101 million in the previous year. The improvement was primarily the result of favorable product price/mix and cost reduction initiatives. These factors were partially offset by lower unit production volume and unfavorable foreign currency fluctuations.

Based on current economic conditions, the company expects full- year 2009 U.S. industry unit shipments to decline between 10 percent and 12 percent.

Whirlpool Europe

Whirlpool Europe reported second-quarter sales of $786 million, a 25 percent decrease from the prior year. Excluding the effects of currency, sales declined approximately 13 percent. Overall industry unit demand during the quarter declined approximately 12 percent from the prior year.

The region reported an operating loss of $12 million during the second quarter compared with a profit of $50 million reported in the previous year. European results were negatively impacted by substantially lower unit sales and production volumes and unfavorable foreign currency fluctuations. These challenges were partially offset by cost reduction initiatives and favorable product price/mix.

Based on current economic conditions in the European region, the company expects full-year 2009 industry unit shipments to decline approximately 13 percent from 2008 levels, compared with its previous expectation of a 10 percent decline.

Whirlpool Latin America

Second-quarter net sales declined 16 percent to $844 million. Excluding currency translation, sales increased approximately 1 percent. The sales increase was driven by a strong increase in Brazilian appliance volume as a result of a government incentive program, while appliance and compressor sales outside of Brazil continued to decline. During the quarter, the company's Brazilian appliance sales increased 28 percent excluding currency translation, and the company continued to strengthen its leadership position in the marketplace.

Operating profit totaled $75 million in the second quarter compared with $133 million in the prior year. The lower profitability is primarily related to unfavorable foreign currency fluctuations, significantly lower monetization levels of certain tax credits and unfavorable material and oil-related costs. These items were partially offset by cost reduction initiatives and a benefit related to an energy credit.

The company now expects full-year 2009 Brazilian appliance shipments to increase more than 10 percent compared to its previous expectation of flat-to-down 5 percent. The expected change is the result of the Brazilian government's decision to extend tax reductions on certain appliances, which has had a favorable impact on consumer demand.

Whirlpool Asia

Whirlpool Asia reported second-quarter sales of $184 million, increasing 3 percent from the prior year. Excluding the impact of currency, sales increased 19 percent. Operating profit during the quarter totaled $11 million compared to $5 million in the prior year. The year-over-year increase in operating profit resulted from higher unit volume and cost reductions. These favorable items were partially offset by unfavorable product price/mix.

The company anticipates full-year 2009 industry unit shipments in Asia to be flat-to-up 5 percent compared to the previous expectation of unit shipments of flat-to-down 5 percent from 2008 levels.

Outlook

For the full-year 2009, Whirlpool Corporation expects earnings per diluted share between $3.50 and $4.00 compared with the prior expectation of $3.00 to $4.00 per diluted share. For the full year, the company expects to generate free cash flow** between $300 million and $400 million. The company's earnings and free cash flow projections are based upon current economic forecasts and business plans.

"When we provided our 2009 outlook earlier this year, we established three key operating priorities in anticipation of a difficult macroeconomic environment: cost reduction, price/mix and lower working capital," said Fettig. "While the demand environment remains a significant challenge, we are making strong progress in our key priorities to offset the volume declines."

* T7 refers to the following household appliance categories: washers, dryers, refrigerators, freezers, dishwashers, ranges and compactors.

** A reconciliation of free cash flow, a non-GAAP financial measure, to cash provided by operations appears below under the heading "Cash Flow Reconciliation."

-- Whirlpool North America region launched:

-- The Whirlpool brand Duet front-load washing machine and Resource

Saver dryer. The Eco Normal cycle on the dryer offers heat and

moisture detection sensors that improve dryer energy usage by 40

percent. The washing machine offers the industry-first TumbleFresh

feature that periodically tumbles clean clothes for up to six hours,

reducing the potential for odor and wrinkles.

-- The Whirlpool Latitude refrigerator, offering 10 percent more space

in the refrigeration compartment compared to similar size

side-by-side models. Features include the industry's most

usable interior refrigeration space available based on fresh food

volume in French door refrigerators, including deeper door bins,

extra shelf space and an easy-to-access in-door ice maker with

removable bucket.

-- A collection of Jenn-Air brand high-performance built-in

refrigerators. The collection includes a 36-inch bottom-freezer,

side-by-side door models and an industry-first fully integrated,

full-flush 42-inch French door bottom-freezer model offering the

widest interior space available in any flush refrigerator currently

on the market. All models feature Advanced Climate Control

Technology, which allows customized drawer storage at lower

temperatures for highly perishable foods.

-- The Gladiator brand GearChest, the brand's first tool chest.