Full-Year Revenues Increase 7 Percent to $19.4 Billion
Earnings per Share from Continuing Operations up 28 Percent to $8.10 per Share
BENTON HARBOR, Mich., February 5, 2008—Whirlpool Corporation (NYSE: WHR) announced today that full-year 2007 earnings from continuing operations were $8.10 per diluted share, up 28 percent from the $6.35 per diluted share reported in the same period last year. The company reported record annual net sales of $19.4 billion, an increase of 7 percent from the prior year.
Fourth-quarter earnings from continuing operations of $187 million increased 41 percent to a record $2.38 per diluted share compared to $133 million, or $1.67 per diluted share reported during the previous year’s quarter. Revenue of $5.3 billion for the quarter increased more than 7 percent from the $5.0 billion reported in the fourth quarter of 2006.
“The year was filled with significant challenges and opportunities,” said Jeff M. Fettig, chairman and chief executive officer of Whirlpool Corporation. “We delivered record financial results in the face of both the most challenging U.S. industry demand environment in more than two decades and unprecedented global material price inflation. Our performance in this environment highlights the strength of our global brands and the geographic diversity of our global operating platform. During 2007, we completed the integration of the largest acquisition in the company’s history, introduced a continuous cadence of new global product innovation and delivered record international results.”
Net earnings for the quarter reflected continued strong momentum within the company’s international business and significantly higher operating profit performance within North America. Operating profit increased 74 percent to $332 million and operating profit margins expanded 2.4 percent from the previous year. Fourth-quarter operating results benefited from cost-efficiency realization associated with the previous year’s acquisition of Maytag, productivity improvements, improved product mix and a favorable net currency impact.
Results were partially offset by ongoing macroeconomic challenges due to higher material and oil-related costs and significantly lower industry demand within the United States.
During the fourth-quarter, Whirlpool repurchased $117 million of common stock, bringing its year-to-date total to $368 million. Approximately $97 million remains available under the company’s $500 million repurchase program.
The company generated $521 million in free cash flow* during 2007 and reduced total debt outstanding from $2.3 billion to $2.1 billion.
FOURTH-QUARTER REGIONAL REVIEW**
Whirlpool North America fourth-quarter sales of $3.0 billion declined less than 1 percent from the prior year as industry unit shipments of major appliances (T7)*** declined approximately 6 percent. The company’s strong brand portfolio of innovative products continued to drive consumer demand and improved average sales values per unit.
Operating profit of $175 million increased 41 percent from the previous year period and operating profit margins increased from 4.0 percent to 5.7 percent. Strong Maytag efficiency realization, favorable product mix and productivity improvements partially offset significantly higher material and oil-related costs as well as lower industry demand.