Whirlpool Corporation Reports Fourth-Quarter and Full-Year 2010 Results

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Posted By: admin February 3, 2011

BENTON HARBOR, Mich., Feb. 2, 2011 /PRNewswire/ — Whirlpool Corporation (NYSE: WHR) announced today fourth-quarter net earnings of $171 million, or $2.19 per diluted share, compared to $95 million, or $1.24 per diluted share reported during the same period last year.  Fourth-quarter adjusted diluted earnings per share(1) totaled $2.11 compared to $1.67 in the prior year.  Sales of $5.0 billion increased 4 percent from the fourth quarter of 2009.
Fourth-quarter operating profit totaled $202 million compared with $199 million in the prior year.  Results were favorably impacted by cost reduction and productivity initiatives, increased monetization of certain tax credits, higher unit volume and lower incentive compensation.  These favorable factors were offset by lower product price/mix and higher material costs.
Full-year 2010 net earnings were $7.97 per diluted share compared to $4.34 per diluted share reported for 2009. Full-year 2010 adjusted diluted earnings per share(1) totaled $9.65, compared to $5.01 in the prior year.  The company reported annual net sales of $18.4 billion, an increase of 7 percent from the prior year.  Excluding the impact of foreign currency translation, sales increased approximately 5 percent from the prior year.
“Delivering consumer-relevant innovations, managing costs and executing in the marketplace drove our improved performance in 2010,” said Jeff M. Fettig, chairman and chief executive officer of Whirlpool Corporation.  “We improved our operating margins and strengthened our financial position for the year – all indicators that our brand-value creation strategy is working.
“As we enter 2011, we remain focused on delivering higher margin innovations, realizing significant cost productivity, and achieving profitable growth driven by some recovery in demand in the developed economies and by continued strong growth in many emerging markets.  In 2011, we expect to expand our operating margins despite significant global inflation and generate good levels of free cash flow and further strengthen our financial position.”
During the twelve months ended December 31, 2010, the company reported cash flow from operations of $1.1 billion. During 2010, Whirlpool Corporation generated free cash flow(2) of $502 million compared to approximately $1.1 billion in the prior year.
FOURTH-QUARTER REGIONAL REVIEW
Whirlpool North America
Fourth-quarter sales of $2.6 billion decreased 1 percent from the prior year.  North America unit shipments increased approximately 5 percent.  U.S. industry unit shipments of major appliances (T7)(3) increased 4 percent during the fourth quarter.
The North America region reported operating profit of $53 million compared to $136 million in the previous year.  Fourth-quarter adjusted operating profit(4) totaled $43 million compared to $145 million.  Results were unfavorably impacted by lower product price/mix, higher material costs and lower production volume.  These factors were partially offset by cost reduction and productivity initiatives and lower incentive compensation.
Based on the current economic outlook, the company expects full-year 2011 U.S. industry unit shipments to increase between 2 percent and 3 percent.
Whirlpool Europe
Whirlpool Europe reported fourth-quarter sales of $922 million, a 4 percent decrease from the prior year.  Excluding the effects of currency, sales increased approximately 4 percent. Overall industry unit demand during the quarter increased an estimated 2 percent compared with the prior year.
The region reported an operating profit of $29 million during the fourth quarter compared to an operating profit of $19 million in the previous year. The year-over-year improvement was primarily the result of cost reduction and productivity initiatives as well as higher unit volumes. The improvement was partially offset by lower price/mix and higher material costs.
The company expects full-year 2011 industry growth in the 2 to 4 percent range.
Whirlpool Latin America
Whirlpool Latin America reported fourth-quarter net sales of $1.4 billion, an increase of 18 percent from the prior year.  Excluding currency translation, sales increased approximately 17 percent.
Operating profit totaled $193 million in the fourth quarter compared with $138 million in the prior year.  The improvement in profitability is primarily related to increased monetization of certain tax credits and cost reduction and productivity initiatives.  These factors were partially offset by higher material costs, lower price/mix and unfavorable foreign currency fluctuations.
The company currently anticipates full-year 2011 Brazilian appliance shipments will increase approximately 5 to 10 percent.
Whirlpool Asia
Whirlpool Asia reported fourth-quarter sales of $204 million, increasing 9 percent from the prior year.  Excluding the impact of currency, sales increased approximately 4 percent.
Operating profit totaled $4 million during the fourth quarter of 2010 compared to $6 million in the prior year.  The reduction in operating profit is primarily related to higher material costs.
The company anticipates full-year 2011 industry unit shipments in Asia to increase approximately 6 to 8 percent.
Outlook
For the full-year 2011, Whirlpool Corporation expects to report diluted earnings per share of $12.00 to $13.00.  This outlook includes the impact of approximately $4.00 per share from U.S. energy tax credits we expect to earn during 2011 as a result of recent tax legislation in the U.S.  For the full year, the company expects to generate free cash flow between $400 million and $500 million.  This outlook includes U.S. cash pension contributions of approximately $300 million.
“For 2011, we expect positive but uneven demand levels around the world.  Raw material inflation is driving costs higher and we expect to mitigate these costs with improvements in cost productivity, innovation and recently announced price increases,” said Fettig.  “For the year, we expect to report EPS of $12.00 to $13.00 per share and free cash flow in the range of $400 million to $500 million which includes a significant cash pension contribution.”
(1)  A reconciliation of adjusted diluted earnings per share, a non-GAAP financial measure, to reported diluted earnings per share and other important information, appears below.
(2)  A reconciliation of free cash flow, a non-GAAP financial measure, to cash provided by operating activities and other important information, appears below.
(3)  T7 refers to the following household appliance categories: washers, dryers, refrigerators, freezers, dishwashers, ranges and compactors.
(4) A reconciliation of adjusted operating profit, a non-GAAP financial measure, to reported operating profit and other important information, appears below.
FOURTH-QUARTER 2010 PRODUCT LAUNCHES
Whirlpool North America Region launched:
The Whirlpool brand’s most premium front-load Duet laundry pair, offering the industry’s most resource-efficient washer and dryer. The laundry pair exceeds government standards by more than 160 percent. The washer uses as little as 11.5 gallons of water per load; and for every household that uses the new Whirlpool Duet laundry pair, 12,857 gallons of water could be saved each year.
No. 1 rated front-load washing machine by a leading consumer magazine.
The Maytag brand Maxima high-capacity front-load laundry pair featuring the PowerWash cycle to power out tough stains.
No. 2 rated front-load washing machine by a leading consumer magazine.
A KitchenAid brand dishwasher featuring a new version of the recessed door handle found on models from past decades. The new handle is available on the brand’s top-of-the-line Superba Series EQ dishwashers, which deliver the best combined wash and dry results among leading premium brand competitors’ highest MSRP models, along with extremely quiet operation.
Whirlpool Europe, Middle East and Africa Region launched:
The Whirlpool brand 6TH SENSE dryer in the Carisma design featuring faster drying times and an A-Class energy rating.  The 6TH SENSE technology accurately detects the load size and monitors temperature and humidity, adapting the drum rotation to create the ideal conditions for each load, while the new Airflow system reduces drying time by increasing airflow volume.
The Whirlpool brand Green Generation top-load washing machine – the quietest top-loading washing machine available – offering high performance in almost total silence.  The washing machine offers an A++ energy rating and features 6TH SENSE technology that recognizes the size of each load, adjusting resources accordingly to generate savings of up to 30 percent on energy, water and time.
A Bauknecht brand wall hood in the Kosmos design with a brushless motor that consumes up to 50 percent less energy than comparable Bauknecht hoods.  The hood allows consumers to select from four different cooking types in order to automatically set the motor to the best possible noise, fan and efficiency levels.
Whirlpool Latin America Region launched:
A KitchenAid brand in-sink food disposer. Entirely developed with materials that can be recycled or reused, the disposer has no blades, ensuring safe operation, and is 40 percent quieter than similar devices.
A line of Whirlpool brand energy-efficient, frost-free refrigerators featuring improved aesthetics, more freezer space than previous models and external temperature controls.
FOURTH-QUARTER 2010 AWARDS AND ACCOMPLISHMENTS
Whirlpool Corporation was recognized as one of the top 500 U.S. companies in Newsweek’s second annual Green Rankings, which lists the greenest large companies in the U.S. and globally. Whirlpool ranked 116th on the list.
Whirlpool Corporation was named to the 2010/2011 Ocean Tomo 300 Patent Index™, the first equity index based on the value of corporate intellectual property, for the fifth consecutive year.
Whirlpool Corporation received top ratings by a leading consumer magazine for 11 of its latest top- and front-loading models. The Whirlpool Duet and Vantage washers were rated No. 1 in the front- and top-loading categories respectively, with the Maytag Maxima taking the No. 2 spot in front load.
Whirlpool Corporation opened a new flagship brand and product experience center in Chicago’s Reid Murdoch Center. With nearly 30,000 square feet, the facility hosts designers, trade customers, sales associates and industry influencers.
Whirlpool Corporation broke ground on a new, one million square foot, LEED-certified manufacturing facility to produce premium cooking products in Cleveland, Tenn.
Whirlpool Latin America was listed among the top 20 sustainable company role models in Brazil.  The Guia Exame de Sustentabilidade 2010 (the 2010 Sustainability Guide), in its 11th edition, is considered the most reputable and important sustainability award publication in the country.  The guide is the most comprehensive survey on corporate responsibility practices in Brazil and picks 20 model companies annually.
Whirlpool Latin America received an Intangibles Award from Consumidor Moderno magazine – ranking first in the Innovation category. One thousand of the largest Brazilian companies were evaluated by a board of examiners using the GAI (Management of Intangible Assets) methodology from DOM Strategy Partners.
In Latin America, the Brastemp brand was named the top laundry and oven brand and Top Class A (most remembered brand among affluent consumers) by Folha de Sao Paulo, a leading Brazilian newspaper.  The Consul brand was named the No. 1 brand in the refrigerator category in the Folha Top of Mind awards.
Embraco, Whirlpool Corporation’s compressor and cooling solutions business, was named for the fourth consecutive year as the Most Innovative Company in the South of Brazil by Amanha magazine.
Whirlpool China was named one of the 100 Best HR Management Companies of 2010 award by 51job, Inc.
Whirlpool brand has been honored with two international iF Product Design Awards 2011 for the Whirlpool brand Fusion Green Generation oven and the Whirlpool brand Glamour Bronze oven and side-by-side refrigerator.  Bauknecht brand Komfort product line received three international iF Product Design Awards for the Komfort built-in oven, combi steamer, and microwave oven.
Whirlpool of India received two 2010 Good Design Awards for the Whirlpool brand three-door Proton refrigerator and Radiance washing machine.

BENTON HARBOR, Mich., Feb. 2, 2011 /PRNewswire/ — Whirlpool Corporation (NYSE: WHR) announced today fourth-quarter net earnings of $171 million, or $2.19 per diluted share, compared to $95 million, or $1.24 per diluted share reported during the same period last year.  Fourth-quarter adjusted diluted earnings per share(1) totaled $2.11 compared to $1.67 in the prior year.  Sales of $5.0 billion increased 4 percent from the fourth quarter of 2009.(Logo:  http://photos.prnewswire.com/prnh/20040202/DETU004LOGO )Fourth-quarter operating profit totaled $202 million compared with $199 million in the prior year.  Results were favorably impacted by cost reduction and productivity initiatives, increased monetization of certain tax credits, higher unit volume and lower incentive compensation.  These favorable factors were offset by lower product price/mix and higher material costs.Full-year 2010 net earnings were $7.97 per diluted share compared to $4.34 per diluted share reported for 2009. Full-year 2010 adjusted diluted earnings per share(1) totaled $9.65, compared to $5.01 in the prior year.  The company reported annual net sales of $18.4 billion, an increase of 7 percent from the prior year.  Excluding the impact of foreign currency translation, sales increased approximately 5 percent from the prior year.  “Delivering consumer-relevant innovations, managing costs and executing in the marketplace drove our improved performance in 2010,” said Jeff M. Fettig, chairman and chief executive officer of Whirlpool Corporation.  “We improved our operating margins and strengthened our financial position for the year – all indicators that our brand-value creation strategy is working.  “As we enter 2011, we remain focused on delivering higher margin innovations, realizing significant cost productivity, and achieving profitable growth driven by some recovery in demand in the developed economies and by continued strong growth in many emerging markets.  In 2011, we expect to expand our operating margins despite significant global inflation and generate good levels of free cash flow and further strengthen our financial position.”During the twelve months ended December 31, 2010, the company reported cash flow from operations of $1.1 billion. During 2010, Whirlpool Corporation generated free cash flow(2) of $502 million compared to approximately $1.1 billion in the prior year.    FOURTH-QUARTER REGIONAL REVIEWWhirlpool North AmericaFourth-quarter sales of $2.6 billion decreased 1 percent from the prior year.  North America unit shipments increased approximately 5 percent.  U.S. industry unit shipments of major appliances (T7)(3) increased 4 percent during the fourth quarter.  The North America region reported operating profit of $53 million compared to $136 million in the previous year.  Fourth-quarter adjusted operating profit(4) totaled $43 million compared to $145 million.  Results were unfavorably impacted by lower product price/mix, higher material costs and lower production volume.  These factors were partially offset by cost reduction and productivity initiatives and lower incentive compensation.  Based on the current economic outlook, the company expects full-year 2011 U.S. industry unit shipments to increase between 2 percent and 3 percent.  Whirlpool EuropeWhirlpool Europe reported fourth-quarter sales of $922 million, a 4 percent decrease from the prior year.  Excluding the effects of currency, sales increased approximately 4 percent. Overall industry unit demand during the quarter increased an estimated 2 percent compared with the prior year.  The region reported an operating profit of $29 million during the fourth quarter compared to an operating profit of $19 million in the previous year. The year-over-year improvement was primarily the result of cost reduction and productivity initiatives as well as higher unit volumes. The improvement was partially offset by lower price/mix and higher material costs.  The company expects full-year 2011 industry growth in the 2 to 4 percent range.  Whirlpool Latin AmericaWhirlpool Latin America reported fourth-quarter net sales of $1.4 billion, an increase of 18 percent from the prior year.  Excluding currency translation, sales increased approximately 17 percent.  Operating profit totaled $193 million in the fourth quarter compared with $138 million in the prior year.  The improvement in profitability is primarily related to increased monetization of certain tax credits and cost reduction and productivity initiatives.  These factors were partially offset by higher material costs, lower price/mix and unfavorable foreign currency fluctuations.  The company currently anticipates full-year 2011 Brazilian appliance shipments will increase approximately 5 to 10 percent.  Whirlpool AsiaWhirlpool Asia reported fourth-quarter sales of $204 million, increasing 9 percent from the prior year.  Excluding the impact of currency, sales increased approximately 4 percent.  Operating profit totaled $4 million during the fourth quarter of 2010 compared to $6 million in the prior year.  The reduction in operating profit is primarily related to higher material costs.  The company anticipates full-year 2011 industry unit shipments in Asia to increase approximately 6 to 8 percent.OutlookFor the full-year 2011, Whirlpool Corporation expects to report diluted earnings per share of $12.00 to $13.00.  This outlook includes the impact of approximately $4.00 per share from U.S. energy tax credits we expect to earn during 2011 as a result of recent tax legislation in the U.S.  For the full year, the company expects to generate free cash flow between $400 million and $500 million.  This outlook includes U.S. cash pension contributions of approximately $300 million.  “For 2011, we expect positive but uneven demand levels around the world.  Raw material inflation is driving costs higher and we expect to mitigate these costs with improvements in cost productivity, innovation and recently announced price increases,” said Fettig.  “For the year, we expect to report EPS of $12.00 to $13.00 per share and free cash flow in the range of $400 million to $500 million which includes a significant cash pension contribution.”(1)  A reconciliation of adjusted diluted earnings per share, a non-GAAP financial measure, to reported diluted earnings per share and other important information, appears below.(2)  A reconciliation of free cash flow, a non-GAAP financial measure, to cash provided by operating activities and other important information, appears below.(3)  T7 refers to the following household appliance categories: washers, dryers, refrigerators, freezers, dishwashers, ranges and compactors.(4) A reconciliation of adjusted operating profit, a non-GAAP financial measure, to reported operating profit and other important information, appears below.FOURTH-QUARTER 2010 PRODUCT LAUNCHESWhirlpool North America Region launched:The Whirlpool brand’s most premium front-load Duet laundry pair, offering the industry’s most resource-efficient washer and dryer. The laundry pair exceeds government standards by more than 160 percent. The washer uses as little as 11.5 gallons of water per load; and for every household that uses the new Whirlpool Duet laundry pair, 12,857 gallons of water could be saved each year.No. 1 rated front-load washing machine by a leading consumer magazine.The Maytag brand Maxima high-capacity front-load laundry pair featuring the PowerWash cycle to power out tough stains.No. 2 rated front-load washing machine by a leading consumer magazine.A KitchenAid brand dishwasher featuring a new version of the recessed door handle found on models from past decades. The new handle is available on the brand’s top-of-the-line Superba Series EQ dishwashers, which deliver the best combined wash and dry results among leading premium brand competitors’ highest MSRP models, along with extremely quiet operation.
Whirlpool Europe, Middle East and Africa Region launched:The Whirlpool brand 6TH SENSE dryer in the Carisma design featuring faster drying times and an A-Class energy rating.  The 6TH SENSE technology accurately detects the load size and monitors temperature and humidity, adapting the drum rotation to create the ideal conditions for each load, while the new Airflow system reduces drying time by increasing airflow volume.The Whirlpool brand Green Generation top-load washing machine – the quietest top-loading washing machine available – offering high performance in almost total silence.  The washing machine offers an A++ energy rating and features 6TH SENSE technology that recognizes the size of each load, adjusting resources accordingly to generate savings of up to 30 percent on energy, water and time.A Bauknecht brand wall hood in the Kosmos design with a brushless motor that consumes up to 50 percent less energy than comparable Bauknecht hoods.  The hood allows consumers to select from four different cooking types in order to automatically set the motor to the best possible noise, fan and efficiency levels.
Whirlpool Latin America Region launched:A KitchenAid brand in-sink food disposer. Entirely developed with materials that can be recycled or reused, the disposer has no blades, ensuring safe operation, and is 40 percent quieter than similar devices.A line of Whirlpool brand energy-efficient, frost-free refrigerators featuring improved aesthetics, more freezer space than previous models and external temperature controls.
FOURTH-QUARTER 2010 AWARDS AND ACCOMPLISHMENTSWhirlpool Corporation was recognized as one of the top 500 U.S. companies in Newsweek’s second annual Green Rankings, which lists the greenest large companies in the U.S. and globally. Whirlpool ranked 116th on the list.Whirlpool Corporation was named to the 2010/2011 Ocean Tomo 300 Patent Index™, the first equity index based on the value of corporate intellectual property, for the fifth consecutive year.Whirlpool Corporation received top ratings by a leading consumer magazine for 11 of its latest top- and front-loading models. The Whirlpool Duet and Vantage washers were rated No. 1 in the front- and top-loading categories respectively, with the Maytag Maxima taking the No. 2 spot in front load.Whirlpool Corporation opened a new flagship brand and product experience center in Chicago’s Reid Murdoch Center. With nearly 30,000 square feet, the facility hosts designers, trade customers, sales associates and industry influencers.Whirlpool Corporation broke ground on a new, one million square foot, LEED-certified manufacturing facility to produce premium cooking products in Cleveland, Tenn.Whirlpool Latin America was listed among the top 20 sustainable company role models in Brazil.  The Guia Exame de Sustentabilidade 2010 (the 2010 Sustainability Guide), in its 11th edition, is considered the most reputable and important sustainability award publication in the country.  The guide is the most comprehensive survey on corporate responsibility practices in Brazil and picks 20 model companies annually.Whirlpool Latin America received an Intangibles Award from Consumidor Moderno magazine – ranking first in the Innovation category. One thousand of the largest Brazilian companies were evaluated by a board of examiners using the GAI (Management of Intangible Assets) methodology from DOM Strategy Partners.In Latin America, the Brastemp brand was named the top laundry and oven brand and Top Class A (most remembered brand among affluent consumers) by Folha de Sao Paulo, a leading Brazilian newspaper.  The Consul brand was named the No. 1 brand in the refrigerator category in the Folha Top of Mind awards.Embraco, Whirlpool Corporation’s compressor and cooling solutions business, was named for the fourth consecutive year as the Most Innovative Company in the South of Brazil by Amanha magazine.Whirlpool China was named one of the 100 Best HR Management Companies of 2010 award by 51job, Inc.Whirlpool brand has been honored with two international iF Product Design Awards 2011 for the Whirlpool brand Fusion Green Generation oven and the Whirlpool brand Glamour Bronze oven and side-by-side refrigerator.  Bauknecht brand Komfort product line received three international iF Product Design Awards for the Komfort built-in oven, combi steamer, and microwave oven.Whirlpool of India received two 2010 Good Design Awards for the Whirlpool brand three-door Proton refrigerator and Radiance washing machine.

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