Oct. 23, 2009 (PR Newswire) -- Benton Harbor, Mich., Oct. 23 /PRNewswire/ -- Whirlpool Corporation (NYSE: WHR) announced today third-quarter 2009 earnings of $1.15 per diluted share compared to $2.15 per diluted share reported in the prior year. The company reported net sales of $4.5 billion, a decrease of 8 percent from the year-ago period. Excluding the impact of foreign exchange translation, the company's third-quarter sales declined approximately 3 percent.

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Third-quarter operating profit increased 8 percent compared to the prior year and was favorably impacted by cost reduction and productivity initiatives. These favorable items were partially offset by lower global sales and production volumes, unfavorable foreign currency impact and lower monetization of certain tax credits. Third-quarter results included a previously announced expense of $43 million, or $0.50 per share net of tax, related to an affiliate settlement agreement with the Brazilian competition commission.

"Our strong operating performance improvement in the quarter highlights our successful cost reduction efforts, the strength of our global operating platform, our commitment to product innovation and strong consumer brands," said Jeff M. Fettig, chairman and chief executive officer of Whirlpool Corporation. "These factors, combined with our continued emphasis on marketplace execution, will remain key focal points as we manage through this challenging macroeconomic environment."

THIRD-Quarter RegionAL Review

Whirlpool North America

Third-quarter sales of $2.5 billion declined 9 percent from the prior year. Excluding the effects of currency, sales declined approximately 7 percent from the prior year. U.S. industry unit shipments of major appliances (T7)* declined 6 percent during the third quarter.

The North America region reported operating profit of $140 million compared to $74 million in the previous year. The improvement was primarily the result of cost reduction and productivity initiatives. These factors were partially offset by lower unit production volume, unfavorable foreign currency fluctuations and lower product price/mix.

Based on the current economic outlook, the company expects full-year 2009 U.S. industry unit shipments to decline approximately 10 percent compared with its prior expectation of a decline between 10 percent and 12 percent.

Whirlpool Europe

Whirlpool Europe reported third-quarter sales of $899 million, a 17 percent decrease from the prior year. Excluding the effects of currency, sales declined approximately 11 percent. Overall industry unit demand during the quarter declined approximately 10 percent from the prior year.

The region reported an operating profit of $14 million during the third quarter compared with $52 million reported in the previous year. Results were negatively impacted by substantially lower volumes and the non-recurrence of an asset sale and insurance settlement recorded in the previous year. These factors were partially offset by cost reduction and productivity initiatives.

The company continues to expect full-year 2009 industry unit shipments to decline approximately 13 percent from 2008 levels.

Whirlpool Latin America

Third-quarter net sales totaled $992 million compared to $989 million in the prior year. Excluding currency translation, sales increased approximately 12 percent. The sales increase was driven by a strong increase in Brazilian appliance demand. During the quarter, the company's Brazilian appliance sales increased 40 percent in local currency and the company continued to strengthen its leadership position in the marketplace.

Operating profit totaled $93 million in the third quarter compared with $116 million in the prior year. The lower profitability is primarily related to significantly lower monetization levels of certain tax credits and unfavorable foreign currency fluctuations. These items were partially offset by cost reduction and productivity initiatives and an overall increase in unit shipments.

The company currently anticipates full-year 2009 Brazilian appliance shipments will increase more than 15 percent compared to the previous expectation of more than 10 percent.

Whirlpool Asia

Whirlpool Asia reported third-quarter sales of $162 million, increasing 18 percent from the prior year. Excluding the impact of currency, sales increased 26 percent. Operating profit during the quarter totaled $8 million, an increase of $8 million from the prior year. The year-over-year increase in operating profit resulted from higher unit volume, higher productivity and cost reductions, and a $3 million asset sale gain. These favorable items were partially offset by unfavorable product price/mix.

The company anticipates full-year 2009 industry unit shipments in Asia to be up 10 percent compared to the previous expectation of unit shipments of flat-to-up 5 percent from 2008 levels.

Outlook

For the full-year 2009, Whirlpool Corporation expects earnings per diluted share to be approximately $4.25 compared with the prior expectation of $3.50 to $4.00 per diluted share. For the full year, the company expects to generate free cash flow** of approximately $500 million to $600 million compared with the prior expectation of $300 million to $400 million. The company's earnings and free cash flow projections are based upon current economic forecasts and business plans.

"Our improved outlook reflects our success in restructuring our business to aggressively align our capacity and resources to lower demand levels," said Fettig. "While we continue to see uncertain and volatile demand levels in many markets, we are well-positioned to deliver higher 2009 earnings and free cash flow compared with our previous expectations."

* 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 Gold free-standing, double oven range.  The upper oven
uses 50 percent less energy and pre-heats in half the time, compared
to a conventional full-sized oven.
--  The Maytag brand Performance Series front-load washing machine with
Fresh Hold option and Dynamic Venting Technology.  The
high-efficiency, ENERGY STAR® qualified washing machine
incorporates Dynamic Venting Technology, an industry-first available
on certain models, and a fan to circulate air to help prevent odor.
--  The Maytag brand Bravos high-efficiency top-load laundry pair
featuring the largest capacity in the industry, faster spin speeds
and Maytag commercial technology. The high-efficiency top-load
laundry pair now has an even larger capacity of 5.0 cubic feet that
can wash up to 18 pounds of laundry per load.
--  The Maytag brand ICE2O refrigerator with patented door seal to keep
cold air in and warm air out to maintain a steady temperature while
saving energy. The ICE2O also features a Beverage Chiller to keep
liquids four degrees cooler than the rest of the refrigerator, a
measured fill option with rotating faucet, Store-N-Door Ice
Dispensing System and a color LCD touch screen with a power outage
indicator.
--  A Maytag brand gas range with the industry's largest oven capacity
available and powerful 17,000 BTU burners, which boil water faster
than a standard burner.
--  The Amana brand top-freezer refrigerator in a new midnight blue
color.
--  Gladiator GarageWorks tool storage solutions for its classic and
premier product lines.  Components are sold separately, but are
designed to work together:
--  The premier three-piece stacked tool chest consisting of a
seven-drawer roll-away, three-drawer intermediate chest and
six-drawer tool chest.
--  A classic three-piece stacked tool chest consisting of a
five-drawer roll-away, three-drawer intermediate chest and
nine-drawer tool chest.
--  The premier 41" wide tool chest consisting of a 10-drawer tool
chest and 12-drawer roll-away.

--  A premier 52" wide tool chest consisting of a 10-drawer tool
chest and 10-drawer roll-away.

--  Whirlpool Europe Region launched:
--  The Whirlpool brand iXelium stainless steel cooktop, the first
cooktop that never loses its shine.  With the exclusive application
of nanotechnology to steel, the iXelium steel cooktop is quick and
easy to clean: its surface prevents food residue from becoming
attached. The cooktop is unaffected by chemical agents or mechanical
actions, and it never becomes stained or scratched.
--  The Whirlpool brand Green Generation washing machine.  The washing
machine features Whirlpool exclusive 6TH SENSE technology, a
SuperEco cycle that reduces energy consumption by up to 40 percent
on a full load, and a Detergent Optimization System (DOS) capable of
reducing detergent use by up to 20 percent for every wash.  In
addition, the hot fill connection, that uses water heated by solar
panels or other alternative sources, can reduce energy consumption
by up to 60 percent.
--  The Whirlpool brand no-frost Fresh Control refrigerator designed to
naturally keep food fresh for up to twice as long.