LG Upgrades Marketing Campaign
Brittany Barnes
October 30, 2007
Consumer electronics producer LG has launched its new marketing campaign with the theme of encouraging consumers to upgrade their current appliances. The Upgrade Campaign is constructed to inspire consumers to give up their old appliances and purchase new ones from LG. The first phase of the two-month, $20 million campaign consists of various commercials, produced in high-definition, that feature comedic fantasies of consumers getting rid of old home appliances in order to upgrade to one of LG’s latest products. The campaign’s aim is to distinguish LG’s products from standard appliances. One commercial features a woman imagining pushing her current washing machine off a diving board into the deep end of a pool so she can get the new LG SteamWasher. Going along with the theme, the commercials will feature slogans such as, “The only thing standing between you and your new LG appliances are your old appliances.”The first of the commercials aired during ABC’s “Dancing with the Stars” on Monday and will expand to other networks throughout the following month. Print pieces, online, viral and event marketing are also included in the campaign.
www.dealerscope.com
Tuesday, October 30, 2007
Monday, October 29, 2007
In-house with lead graphic designer at WP Global
In-house with Brian Edlefson: Lead graphic designer in Whirlpool Corporation’s Global Consumer Design studioAuthor of this post: Katherine Feo About Blog Authors »>
Brian Edlefson
Brian Edlefson strives for more graphic thought and less visual clutter. As a lead designer in Whirlpool Corporation’s multi-disciplinary Global Consumer Design studio, Edlefson is responsible for infusing household brands like Whirlpool, Maytag, Kenmore, and Amana with smart graphic design strategies. Prior to moving to Michigan, Brian developed design solutions at Target, The Museum of Modern Art in New York, Herman Miller, and McDougal-Littell Publishing. He earned his BFA from Western Michigan University (1996), studied color in Bali, Indonesia with Ohio University (2000), and achieved an MFA from Yale University (2005). Edlefson’s work has been recognized in many national and international creative competitions (New York Art Director’s Club, Communication Arts, Creativity, Graphis, HOW, Print, STEP Inside Design) and chosen for inclusion in the National Design Archive at the Library of Congress. Recently, Brian was a featured speaker at the 2007 HOW Design Conference in Atlanta.
A limited edition poster commemorating Charles and Ray Eames. 24×36in, hexachrome offset
I’m curious about your current position at Whirlpool. What are you doing now that you’ve left Target? I heard you’re no longer in Minneapolis- is that true?
Brian: Yes, I left Target and Minneapolis to accept a position with Whirlpool. Although I love Minneapolis-and my time at Target was rewarding-this new role offered the unique opportunity to help lead a multidisciplinary design team. It has been a very natural professional evolution. My most rewarding design experiences have involved collaborations with colleagues outside typical graphic design practices: architects and interior designers at Herman Miller, curators and historians at MoMA, marketing strategists and interior architects at Target, and now consumer product designers at Whirlpool. My current role also builds on my interest in defining and differentiating a collection of brands. Whirlpool is a big, global company with many household brand names (Whirlpool, Maytag, Amana, Kitchen Aid, Jenn-Air, Magic Chef, etc.). Making compelling design solutions-in collaboration with product designers—on a collection of ‘un-sexy’ products—offers a lot of challenges. In some ways it is different than Target because the ‘bullseye’ caché is almost universally appealing. Target uses design as a powerful marketing tool-whereas Whirlpool uses design to make tedious tasks like laundry and food preparation more pleasurable, easier.
What are the specific challenges of designing an ‘unsexy’ product? Do you find that the demands on your creativity and of your conception of design change with when it’s focused more on everyday utility than marketability? Finally, which is more satisfying?
Brian: First-I should clarify/retract my description of Whirlpool’s products as ‘unsexy’—it is a prejudiced view of some very compelling product design. Better adjectives might be pragmatic, utilitarian, or under-appreciated. Now, the problems are similar in that everyone wants an attractive, compelling design solution—the challenge for these practical products is that customers typically don’t pay attention to innovations and advancements in laundry machines unless their products need to be replaced. Our work revolves around differentiating our family of brands and ensuring that people make smart decisions—because (typically) they won’t be in the market for new appliances for many years.
I find Target’s dynamic marketing and Whirlpool’s practical problem-solving equally compelling and satisfying. Generally, Whirlpool’s research-driven process probably best fits with my personal problem-solving methodology.
You held a position on the AIGA Minneapolis chapter’s board of directors as the Associate Programming Director for in-house designers. Why is in-house design an important professional category that needs to be recognized by the AIGA?
Brian: The Minnesota chapter was unique in recognizing the in-house segment of the profession and I believe that this role is important because it gives a voice to this specific design demographic.
What is unique about this demographic? What are the particular ‘in-house’ issues that you addressed?
Brian: In-house creatives tend to feel separated from the rest of the field simply by virtue that they are often in large companies without graphic design peers. It is a large portion of the field, but often in-house designers are located outside big metropolitan ‘design’ centers. The best way to combat isolation and build camaraderie is through forums or connections that allow open communication.
Working in-house sometimes gets a bad rap for being less ‘cool’ than working at smaller firms or freelancing, but you’ve made a career out of it—what are the pros of being in-house? What surprised you the most when you started as an in-house designer after freelancing?
Brian: I have to admit that I never planned a career path as an in-house designer. It really happened by accident; I have been very careful to consider job opportunities—both inside and outside large organizations. I suppose that I have found that within large organizations there is more opportunity to work with people from many different professions—from ergonomic research specialists to truck drivers. I also believe that I have an opportunity to participate on projects on a longer continuum, from the inception of an idea through the execution of the final form. As a freelance designer I was often frustrated that a lot of decisions had already been made before I was hired to ‘begin’ a project.
The most surprising part of transitioning from freelance to in-house was the work hours. There is a common misconception that in-house designers work an easy 9-5 day. That has never been my experience.
So, if you could change one thing about the in-house process, what would it be?
Brian: Fewer meetings
Hard Graft is my self-published thesis book from Yale-a graphic exploration on the subject of ‘cut and paste’. 6×9in, 4-color digital offset, 132 pgs
Before your in-house experience, you freelanced for several years. What did you value in your career as a freelance designer? Did your experience as a freelancer contribute to your decision to dig deep in-house later?
Brian: I freelanced between multiple in-house gigs. Before Herman Miller I freelanced in Chicago. I freelanced for MoMA while at Yale-before Target. I often accept freelance projects in addition to my ‘inside’ jobs. Freelancing is similar to in-house positions in that they both require individuals to be facile in many different roles: project management, writing, print- and web-production, account management. I find the long-term relationships in large organizations to be rewarding. Freelancing can be a solitary life; I get bored if I don’t have an opportunity to interact with people.
one (of 5) of the Picnic Posters I designed/illustrated for the Herman Miller Annual Summer Picnic. 24×36in, 9-color silkscreen
Many professions require periodic professional education to keep their skill set sharp; you completed your MFA from Yale in 2005. What prompted you to restart a course of study in the middle of a productive working life?
Brian: I had always thought that I would return to school eventually. I had worked at Herman Miller for over six years and was fortunate enough to gain some great experiences there. I was at a point where I wanted to consider other areas of design beyond what my position offered (like motion graphics, interactive media, writing and criticism). I had also become a father and was inspired witnessing my son’s hunger for learning and experiencing new things.
I was complacent and very naive. The transition was more difficult than expected; now that I have some perspective I can see that the benefits were much different than I anticipated. I applied to grad school with the notion that it would land me the best jobs. Rather, it has made me a more critical practitioner; it changed my definition of what qualifies as the ‘best job’.
So what qualifies as a ‘best job’ now?
Brian: A position with design authority and an environment that fosters experimentation, exploration, and continuous learning; a job that accepts occasional failures in the pursuit of excellence. A satisfying design process has become as rewarding as the outcome.
An address book for the curatorial committee, designed for the Architecture and Design department. 6×6in, 44pgs.
Over the course of your career, you’ve moved between several great positions at similarly great creative companies (MOMA, Herman Miller, Target and now Whirlpool)—how do you know when it’s time to move on professionally?
Brian: When I don’t want to go to work; when my job/projects become predictable.
A congratulatory Ad celebrating recipient of the Ad Council’s Public Service Award. Creative Director: Connie Soteropulos
During your tenure as Art Director, Target won the AIGA’s Corporate Leadership Award in 2006, though it’s been producing great work under the slogan ‘Design for All’ for much longer than that. How do you keep things hip when you’re working for a large corporation, especially one that aims to reach a very broad section of the population?
Brian: Target’s Corporate Leadership award is a testament to MANY talented designers working very hard. The struggle lies in combining ‘hip’ with ‘large corporation’. Strangely, that is also where organizations like Target get their momentum—the people. I found that the qualities that resonate with employees are also the things that attract public attention and admiration. Corporations like Target (and Apple, Google, and IKEA) know that they just need teams of people who can listen—and watch—for resonant touchpoints, such as environmental sustainability, affordable aesthetics, easy function, investment in the community, ticklish Elmos, and a useful cell phone.
Working for companies that offer lots of products and services means you’ve had to design for various media platforms. What are your strategies for keeping it coherent with such a wide scope of requirements?
Brian: I think a lot of companies assume that they have to design SOMETHING for every medium—instead of designing something WELL, in the media that attracts your audience. Herman Miller doesn’t really advertise, but they know that they reach customers through other channels. Whirlpool depends on big-box retailers to sell their products, so they focus on designing great products. I personally think that the wide range of media/projects is exciting, but there is the very real danger that design solutions become predictable—cookie-cutter for the sake of ‘brand’ consistency.
How do you avoid cookie-cutter syndrome for brand consistency?
Brian: It’s a fine line between establishing brand expectations and repeating the same thing for the sake of recognition. I believe the most successful brand designs accommodate an element of surprise—an organic method for applying the identity that defies any specific trend, time, or medium.
At the recent HOW conference in Atlanta, you spoke about ways to find time for creativity in a day filled with meetings, management and administrative tasks. What are your strategies for making time to design? Are the challenges different for freelancers and in-house designers?
Brian: Freelancers have more flexibility with their schedules and their calendars are not as transparent. Anyone I work with can view my schedule and see when I have some spare time. In Atlanta, I encouraged designers to carefully consider when they feel productive, and to schedule their responsibilities accordingly. Personally, I know that I have more clarity and focus early in the morning, so I try to keep my meetings scheduled in the afternoon. This ensures that I have the morning to design-and this makes me a more pleasant, less stressed attendee at meetings.
As you’ve become a management guy in a creative firm, how do you see your role? Are you still primarily a designer, or does pressure from the client influence your creativity differently now that you’re in charge?
Brian: I am still a designer, but now I focus on less tangible design problems. Many of my projects don’t get printed, produced, or manufactured—they are conceptual exercises or design strategies.
These strategies outline a vision for ‘what it could be’ by providing concepts that provoke the leadership to make decisions. I visualize equations: if you give me these criteria and objectives, you could get these (several) design results. I visualize those results and present them in concept form—many of them will never be seen. The benefit is that by the time the ‘final’ design is presented to the public it has been considered from many aspects beyond typical corporate financial, manufacturing, and legal considerations.
I am still acclimating to this change in my work and responsibilities. Managing talent and resources is an interesting challenge and it can be rewarding, but it requires a different sort of evaluation. I will always keep some pragmatic, tactical projects to maintain awareness of current trends and practices. It was hard enough to define ‘graphic design’ for my parents—now I’m trying to find a way to describe a job that involves consulting, strategy, and proof-of- concept research. And I used to be an art student…
Notes on Design
July 25, 2007
Brian Edlefson
Brian Edlefson strives for more graphic thought and less visual clutter. As a lead designer in Whirlpool Corporation’s multi-disciplinary Global Consumer Design studio, Edlefson is responsible for infusing household brands like Whirlpool, Maytag, Kenmore, and Amana with smart graphic design strategies. Prior to moving to Michigan, Brian developed design solutions at Target, The Museum of Modern Art in New York, Herman Miller, and McDougal-Littell Publishing. He earned his BFA from Western Michigan University (1996), studied color in Bali, Indonesia with Ohio University (2000), and achieved an MFA from Yale University (2005). Edlefson’s work has been recognized in many national and international creative competitions (New York Art Director’s Club, Communication Arts, Creativity, Graphis, HOW, Print, STEP Inside Design) and chosen for inclusion in the National Design Archive at the Library of Congress. Recently, Brian was a featured speaker at the 2007 HOW Design Conference in Atlanta.
A limited edition poster commemorating Charles and Ray Eames. 24×36in, hexachrome offset
I’m curious about your current position at Whirlpool. What are you doing now that you’ve left Target? I heard you’re no longer in Minneapolis- is that true?
Brian: Yes, I left Target and Minneapolis to accept a position with Whirlpool. Although I love Minneapolis-and my time at Target was rewarding-this new role offered the unique opportunity to help lead a multidisciplinary design team. It has been a very natural professional evolution. My most rewarding design experiences have involved collaborations with colleagues outside typical graphic design practices: architects and interior designers at Herman Miller, curators and historians at MoMA, marketing strategists and interior architects at Target, and now consumer product designers at Whirlpool. My current role also builds on my interest in defining and differentiating a collection of brands. Whirlpool is a big, global company with many household brand names (Whirlpool, Maytag, Amana, Kitchen Aid, Jenn-Air, Magic Chef, etc.). Making compelling design solutions-in collaboration with product designers—on a collection of ‘un-sexy’ products—offers a lot of challenges. In some ways it is different than Target because the ‘bullseye’ caché is almost universally appealing. Target uses design as a powerful marketing tool-whereas Whirlpool uses design to make tedious tasks like laundry and food preparation more pleasurable, easier.
What are the specific challenges of designing an ‘unsexy’ product? Do you find that the demands on your creativity and of your conception of design change with when it’s focused more on everyday utility than marketability? Finally, which is more satisfying?
Brian: First-I should clarify/retract my description of Whirlpool’s products as ‘unsexy’—it is a prejudiced view of some very compelling product design. Better adjectives might be pragmatic, utilitarian, or under-appreciated. Now, the problems are similar in that everyone wants an attractive, compelling design solution—the challenge for these practical products is that customers typically don’t pay attention to innovations and advancements in laundry machines unless their products need to be replaced. Our work revolves around differentiating our family of brands and ensuring that people make smart decisions—because (typically) they won’t be in the market for new appliances for many years.
I find Target’s dynamic marketing and Whirlpool’s practical problem-solving equally compelling and satisfying. Generally, Whirlpool’s research-driven process probably best fits with my personal problem-solving methodology.
You held a position on the AIGA Minneapolis chapter’s board of directors as the Associate Programming Director for in-house designers. Why is in-house design an important professional category that needs to be recognized by the AIGA?
Brian: The Minnesota chapter was unique in recognizing the in-house segment of the profession and I believe that this role is important because it gives a voice to this specific design demographic.
What is unique about this demographic? What are the particular ‘in-house’ issues that you addressed?
Brian: In-house creatives tend to feel separated from the rest of the field simply by virtue that they are often in large companies without graphic design peers. It is a large portion of the field, but often in-house designers are located outside big metropolitan ‘design’ centers. The best way to combat isolation and build camaraderie is through forums or connections that allow open communication.
Working in-house sometimes gets a bad rap for being less ‘cool’ than working at smaller firms or freelancing, but you’ve made a career out of it—what are the pros of being in-house? What surprised you the most when you started as an in-house designer after freelancing?
Brian: I have to admit that I never planned a career path as an in-house designer. It really happened by accident; I have been very careful to consider job opportunities—both inside and outside large organizations. I suppose that I have found that within large organizations there is more opportunity to work with people from many different professions—from ergonomic research specialists to truck drivers. I also believe that I have an opportunity to participate on projects on a longer continuum, from the inception of an idea through the execution of the final form. As a freelance designer I was often frustrated that a lot of decisions had already been made before I was hired to ‘begin’ a project.
The most surprising part of transitioning from freelance to in-house was the work hours. There is a common misconception that in-house designers work an easy 9-5 day. That has never been my experience.
So, if you could change one thing about the in-house process, what would it be?
Brian: Fewer meetings
Hard Graft is my self-published thesis book from Yale-a graphic exploration on the subject of ‘cut and paste’. 6×9in, 4-color digital offset, 132 pgs
Before your in-house experience, you freelanced for several years. What did you value in your career as a freelance designer? Did your experience as a freelancer contribute to your decision to dig deep in-house later?
Brian: I freelanced between multiple in-house gigs. Before Herman Miller I freelanced in Chicago. I freelanced for MoMA while at Yale-before Target. I often accept freelance projects in addition to my ‘inside’ jobs. Freelancing is similar to in-house positions in that they both require individuals to be facile in many different roles: project management, writing, print- and web-production, account management. I find the long-term relationships in large organizations to be rewarding. Freelancing can be a solitary life; I get bored if I don’t have an opportunity to interact with people.
one (of 5) of the Picnic Posters I designed/illustrated for the Herman Miller Annual Summer Picnic. 24×36in, 9-color silkscreen
Many professions require periodic professional education to keep their skill set sharp; you completed your MFA from Yale in 2005. What prompted you to restart a course of study in the middle of a productive working life?
Brian: I had always thought that I would return to school eventually. I had worked at Herman Miller for over six years and was fortunate enough to gain some great experiences there. I was at a point where I wanted to consider other areas of design beyond what my position offered (like motion graphics, interactive media, writing and criticism). I had also become a father and was inspired witnessing my son’s hunger for learning and experiencing new things.
I was complacent and very naive. The transition was more difficult than expected; now that I have some perspective I can see that the benefits were much different than I anticipated. I applied to grad school with the notion that it would land me the best jobs. Rather, it has made me a more critical practitioner; it changed my definition of what qualifies as the ‘best job’.
So what qualifies as a ‘best job’ now?
Brian: A position with design authority and an environment that fosters experimentation, exploration, and continuous learning; a job that accepts occasional failures in the pursuit of excellence. A satisfying design process has become as rewarding as the outcome.
An address book for the curatorial committee, designed for the Architecture and Design department. 6×6in, 44pgs.
Over the course of your career, you’ve moved between several great positions at similarly great creative companies (MOMA, Herman Miller, Target and now Whirlpool)—how do you know when it’s time to move on professionally?
Brian: When I don’t want to go to work; when my job/projects become predictable.
A congratulatory Ad celebrating recipient of the Ad Council’s Public Service Award. Creative Director: Connie Soteropulos
During your tenure as Art Director, Target won the AIGA’s Corporate Leadership Award in 2006, though it’s been producing great work under the slogan ‘Design for All’ for much longer than that. How do you keep things hip when you’re working for a large corporation, especially one that aims to reach a very broad section of the population?
Brian: Target’s Corporate Leadership award is a testament to MANY talented designers working very hard. The struggle lies in combining ‘hip’ with ‘large corporation’. Strangely, that is also where organizations like Target get their momentum—the people. I found that the qualities that resonate with employees are also the things that attract public attention and admiration. Corporations like Target (and Apple, Google, and IKEA) know that they just need teams of people who can listen—and watch—for resonant touchpoints, such as environmental sustainability, affordable aesthetics, easy function, investment in the community, ticklish Elmos, and a useful cell phone.
Working for companies that offer lots of products and services means you’ve had to design for various media platforms. What are your strategies for keeping it coherent with such a wide scope of requirements?
Brian: I think a lot of companies assume that they have to design SOMETHING for every medium—instead of designing something WELL, in the media that attracts your audience. Herman Miller doesn’t really advertise, but they know that they reach customers through other channels. Whirlpool depends on big-box retailers to sell their products, so they focus on designing great products. I personally think that the wide range of media/projects is exciting, but there is the very real danger that design solutions become predictable—cookie-cutter for the sake of ‘brand’ consistency.
How do you avoid cookie-cutter syndrome for brand consistency?
Brian: It’s a fine line between establishing brand expectations and repeating the same thing for the sake of recognition. I believe the most successful brand designs accommodate an element of surprise—an organic method for applying the identity that defies any specific trend, time, or medium.
At the recent HOW conference in Atlanta, you spoke about ways to find time for creativity in a day filled with meetings, management and administrative tasks. What are your strategies for making time to design? Are the challenges different for freelancers and in-house designers?
Brian: Freelancers have more flexibility with their schedules and their calendars are not as transparent. Anyone I work with can view my schedule and see when I have some spare time. In Atlanta, I encouraged designers to carefully consider when they feel productive, and to schedule their responsibilities accordingly. Personally, I know that I have more clarity and focus early in the morning, so I try to keep my meetings scheduled in the afternoon. This ensures that I have the morning to design-and this makes me a more pleasant, less stressed attendee at meetings.
As you’ve become a management guy in a creative firm, how do you see your role? Are you still primarily a designer, or does pressure from the client influence your creativity differently now that you’re in charge?
Brian: I am still a designer, but now I focus on less tangible design problems. Many of my projects don’t get printed, produced, or manufactured—they are conceptual exercises or design strategies.
These strategies outline a vision for ‘what it could be’ by providing concepts that provoke the leadership to make decisions. I visualize equations: if you give me these criteria and objectives, you could get these (several) design results. I visualize those results and present them in concept form—many of them will never be seen. The benefit is that by the time the ‘final’ design is presented to the public it has been considered from many aspects beyond typical corporate financial, manufacturing, and legal considerations.
I am still acclimating to this change in my work and responsibilities. Managing talent and resources is an interesting challenge and it can be rewarding, but it requires a different sort of evaluation. I will always keep some pragmatic, tactical projects to maintain awareness of current trends and practices. It was hard enough to define ‘graphic design’ for my parents—now I’m trying to find a way to describe a job that involves consulting, strategy, and proof-of- concept research. And I used to be an art student…
Notes on Design
July 25, 2007
Whirlpool Corporation Reports Third-Quarter Results (PR NewsWire) October 27,2007
Whirlpool Corporation Reports Record Third-Quarter Results
Record International Performance
BENTON HARBOR, Mich., Oct. 23 /PRNewswire-FirstCall/ -- Whirlpool Corporation (NYSE: WHR) announced today that third-quarter 2007 earnings from continuing operations were $175 million, or $2.20 per diluted share, up approximately 31 percent from the $134 million, or $1.68 per diluted share, reported in the same period last year. Net sales of $4.8 billion, which were impacted by a weak U.S. market, remained unchanged from last year's levels.
Third-quarter earnings reflected strong improvement within the company's international businesses, cost-efficiency realization associated with last year's acquisition of Maytag, productivity improvements, cost controls and lower global taxes. The company's results also included $41 million of gains associated with asset sales and the sale of an investment, compared to the $42 million of asset sale gains reported in the previous year period. Results were adversely affected by significantly higher material and oil-related costs, lower demand within the United States and unfavorable currency.
"Our global operating platform, product innovation and strong consumer brands have enabled us to effectively manage through both the unprecedented global material cost environment which began more than three years ago, and more recent industry demand declines within the United States," said Jeff M. Fettig, chairman and chief executive officer of Whirlpool Corporation. "The international economic environment has remained favorable and our international businesses continue to deliver record financial results. The combination of record material and oil-related cost increases and weaker than expected appliance demand in the U.S. have negatively impacted our North American business."
During the quarter, Whirlpool Corporation repurchased $150 million of common stock, bringing its year-to-date total to $251 million. Approximately $214 million remains available under the company's $500 million share repurchase program. NEW INNOVATIONS
-- The Whirlpool brand launched:
-- The Duet Steam washer and dryer. The washer naturally steams away
tough stains, from grass to grease, without pre-treating. The
dryer, a first-of-its-kind laundry innovation, removes odors and
reduces wrinkles from clothing.
-- The Maytag brand launched:
-- The special edition Maytag Centennial top-load washer and dryer in
celebration of the 100th anniversary of the first Maytag washer.
The special edition Centennial system offers retro styling with a
center-knob control and gold console trim and kick plate. The
washer features a heavy-gauge steel lid and commercial-grade
strength.
-- A new SteamClean option for dishwashers. SteamClean delivers
enhanced cleaning performance on glassware for soil and spotting.
Whirlpool Corporation is the first in the industry to launch a
steam option in dishwashers.
-- Laundry 123 organizational accessories to pair with Maytag Epic
and Maytag Bravos products. Laundry 123 features slide-out and
protective work surface options. Vibration pads help eliminate
noise and movement of items placed on the work surface, and an
elevated back acts as a guardrail to keep items from falling
behind machines. Laundry towers fit beside or between the washer
and dryer and feature oversized storage drawers, a pull-out supply
tray and a retractable steel hanging rod.
-- The Jenn-Air brand launched:
-- A complete collection of small-scale appliances for the living
room, media room and other rooms beyond the kitchen. The
collection includes a wine cellar, beverage center, ice machine,
under counter refrigerator, warming and refrigerator drawers and
convenience oven.
-- A new SteamClean option for dishwashers. The SteamClean option
enhances an existing wash cycle, such as the China/Crystal cycle,
with improved soil and spot cleaning to produce an even more
lustrous shine. In addition to steam, these models also have a
new silent sound package, making an already quiet dishwasher even
quieter.
-- Whirlpool launched Affresh washer cleaner tablets, which remove odor-
causing residue in washing machines.
-- Whirlpool Europe launched:
-- An espresso coffee maker integrated into a Whirlpool side-by-side
refrigerator. The coffee maker uses coffee pouches and is able to
provide up to 35 cups of coffee at a time.
-- Bauknecht and Whirlpool steam option washing machines designed to
make laundry hygienically clean even at low temperatures. The
steam option freshens garments quickly and helps to gently remove
tough stains.
-- Whirlpool Latin America launched:
-- More than 25 Brastemp refrigeration models across four lines:
Club, Active!, Duplex and Clean. The Club refrigerator line
offers exclusive can dispensers in the door. Active! refrigerators
feature a pre-programmable compartment that allows consumers to
cool drinks to desired temperatures and an alarm that sounds when
it is ready.
-- The Brastemp vertical Flex Freezer. The Brastemp Flex allows
consumers to choose between using the product as a freezer or as a
refrigerator with a simple touch of a button.
-- The Consul air acclimatizer to improve the quality of the
environment and the health of those who live in one of the driest
regions of Brazil. The product has a water capacity of 6.5 liters,
washable filter, timer and a switch to change the function from
air refresh to humidify.
-- Whirlpool Asia launched:
-- The PURAFRESH water purifier in India, marking its entree into the
water category. PURAFRESH is India's first and only direct flow
reverse osmosis water purifier with no storage tank, enabling
immediate consumption of freshly purified water.
-- New Maytag top-load and front-load washing machines in Australia.
The washing machines offer the same durable and commercial quality
that Maytag washers have been built with for 100 years.
-- A line of Maytag cooking appliances for the Australian market. The
range of premium kitchen appliances consists of cook-tops, built-
in coffee machines, built-in ovens and microwaves, elegant range
hoods and freestanding cookers.
AWARDS AND ACCOMPLISHMENTS
-- Whirlpool Corporation was named one of the top global companies for
leaders by Hewitt Associates, FORTUNE magazine and The RBL Group, in
acknowledgement for Whirlpool's focus on developing leaders within the
company.
-- Whirlpool Corporation was ranked among the top 20 innovators in the
consumer products segment by The Patent Board, the leading independent
provider of best practices research, tools and metrics for patent
analysis and intellectual property investment.
-- Whirlpool Corporation was named to the 2007/2008 Dow Jones
Sustainability North American, KLD Global Sustainability and FTSE4Good
Indexes, three international investment analysis tools that evaluate
corporate performance using economic, environmental and social
criteria.
-- Whirlpool was selected as one of the best companies to work for in
Brazil according to the research by Exame Magazine, in partnership
with Foundation Institute of Administration / Economy and
Administration College of the University of Sao Paulo. This is the
11th consecutive time Whirlpool has been named to the list.
-- Whirlpool was recognized as one of the top 100 companies for corporate
giving based on a survey of Fortune 500 companies by The Chronicle of
Philanthropy.
-- Whirlpool Chairman and CEO Jeff M. Fettig received the 2007 Hunt-
Scanlon Human Capital Advantage Award, which recognizes a leading
chief executive who has displayed excellence in human capital
management while increasing shareholder value.
-- The Maytag Repairman was nominated for Advertising Week 2007's
"Favorite Advertising Icon".
-- In Germany, the Bauknecht stainless steel surface ProTouch was awarded
the Innovation Prize of the "Besser Leben" (Better Life) initiative.
The new Bauknecht dishwasher generation with PowerClean function won a
Gold award.
-- In Brazil, Brastemp brand was named one of the prominent brands by
Reader's Digest magazine. The Brastemp brand placed first in the
refrigeration category. Readers also selected Brastemp as the 4th
most trusted brand in Brazil across all consumer product categories.
THIRD-QUARTER REGIONAL REVIEW*
Whirlpool North America third-quarter revenue of $2.9 billion was down 8 percent versus the prior year period primarily due to weak U.S. industry demand and lower OEM shipments. Industry unit shipments of major appliances (T7)** declined 5 percent for both the current quarter and year-to-date period.
Operating profit of $132 million declined 24 percent from the previous year period primarily due to the continuation of significant material and oil- related cost increases for base metals, component parts, steel and fuel, as well as lower than expected U.S. demand. Continued strong acquisition efficiency realization partially offset the higher costs.
Industry shipment trends are expected to improve during the fourth quarter following five consecutive quarters of year-over-year declines. Based on current economic conditions, the company now expects full-year 2007 U.S. industry unit shipments to decline approximately 4 percent.
Whirlpool Europe's revenue of $1 billion increased 12 percent from the prior-year period representing a third-quarter record, led by the region's top selling Whirlpool brand and new innovative product offerings. Excluding currency translation, sales increased by 3 percent. Industry demand during the quarter was estimated to have increased approximately 2 percent.
Operating profit increased from $57 million to $84 million during the period. The current quarter included a $32 million asset sale gain compared to an $8 million gain reported in the prior year. Results also reflected productivity improvements as well as the benefits from higher volume and improved product mix. Partially offsetting the improved operating profit performance were significantly higher material costs during the quarter.
Based on current economic conditions in Europe, the company continues to expect full-year industry unit shipments to increase approximately 2 to 3 percent.
Whirlpool Latin America reported record third-quarter revenue and operating profit. Revenue increased 23 percent to $813 million driven by strong appliance industry growth, the impact from cost-based price adjustments implemented during the quarter, continued new innovative product introductions and strong economic conditions throughout the region. Excluding the impact from currency, sales for appliances and compressors increased approximately 10 percent. Regional unit shipments of appliances were slightly below industry demand which grew by approximately 16 percent, primarily due to the implementation of cost-based price adjustments during the quarter. For the year, regional shipments continued to exceed industry growth.
Operating profit increased 85 percent to an all-time quarterly record of $103 million during the period and margins increased to 12.7 percent from the 8.5 percent reported last year. Strong demand for the region's top-selling innovative brands, improved pricing, strong productivity and tax credits mitigated higher material costs during the quarter.
Based on the current economic environment in Brazil, the company continues to expect full-year 2007 appliance industry unit shipments to increase 15 to 20 percent.
Whirlpool Asia reported quarterly sales of $123 million, increasing 18 percent from the prior-year period. Excluding the impact of currency, sales increased approximately 7 percent led by successful new innovative product launches and improved product mix within India, the region's largest market. The regional operating loss of $5 million increased from last year's level primarily due to increased brand investment and higher inventory transition costs.
Based on current economic conditions in Asia, the company continues to expect full-year 2007 industry unit shipments to increase 5 to 10 percent.
* During the first quarter of 2007, the company adopted changes to its segment reporting consistent with the methodology the chief executive officer now uses to evaluate each segment's operating and financial results. The company previously included the financial results for its Caribbean operations and exports of certain portable appliances to Europe within its North America business segment. The results for these businesses are now being reported within the Latin America and Europe segments, respectively. In addition, the company has reallocated certain costs previously included within corporate administrative expense to each of the respective regions. Regional results for 2006 have been reclassified to reflect these changes.
** T7 refers to the following household appliance categories: washers, dryers, refrigerators, freezers, dishwashers, ranges and compactors.
Outlook
"While current economic conditions are challenging, we have continued to invest in our strategy, completed the integration of the largest acquisition in company history and introduced a record number of new innovative products," said Fettig. "We are well positioned to further increase shareholder value in the future as we continue to build our position as a strong global consumer products company. The benefits from our global operating platform, innovative consumer brands, and acquisition efficiencies in excess of $400 million will enable us to increase earnings and free cash flow during 2007, despite record material cost increases of approximately $570 million and weak demand trends in the U.S. market."
Whirlpool continues to expect full-year 2007 earnings per diluted share from continuing operations to be in the $8.00 to $8.50 range and free cash flow of $600 million to $650 million.
Cash Flow Reconciliation
The table below reconciles projected 2007 cash provided by continuing operations determined in accordance with generally accepted accounting principles (GAAP) in the United States to free cash flow, a non-GAAP measure. Management believes that free cash flow provides shareholders with a relevant measure of liquidity and a useful basis for assessing the company's ability to fund its activities and obligations. There are limitations to using non-GAAP financial measures, including the difficulty associated with comparing companies that use similarly named non-GAAP measures whose calculations may differ from the company's calculations. As defined by the company, free cash flow is cash provided by continuing operations after capital expenditures and proceeds from the sale of assets/businesses. Free cash flow does not include proceeds from the sale of Maytag businesses. The projections shown here are based upon many estimates and are inherently subject to change based on future decisions made by management and the board of directors of the company, and significant economic, competitive and other uncertainties and contingencies. (millions of dollars)
Cash provided by continuing operations $1,100-$1,150
Capital expenditures ~(600)
Proceeds from sale of assets/non-Maytag businesses ~100
-----------------
Free Cash Flow $600-$650
About Whirlpool Corporation
Whirlpool Corporation is the world's leading manufacturer and marketer of major home appliances, with annual sales of approximately $18 billion, 73,000 employees, and 70 manufacturing and technology research centers around the world. The company markets Whirlpool, Maytag, KitchenAid, Jenn-Air, Amana, Brastemp, Bauknecht and other major brand names to consumers in nearly every country around the world. Additional information about the company can be found at http://sev.prnewswire.com/household-consumer-cosmetics/20071023/CLTU02323102007-1.html#.
Whirlpool Additional Information:
This document contains forward-looking statements that speak only as of this date. Whirlpool disclaims any obligation to update these statements. Forward-looking statements in this document include, but are not limited to, statements regarding expected earnings per share, cash flow, productivity and material and oil-related prices, as well as expectations as to the integration with Maytag Corporation. Many risks, contingencies and uncertainties could cause actual results to differ materially from Whirlpool Corporation's forward-looking statements. Among these factors are: (1) intense competition in the home appliance industry reflecting the impact of both new and established global competitors, including Asian and European, and the strength of trade customers; (2) Whirlpool's ability to continue its strong relationship with Sears Holding Corporation in North America (accounting for approximately 14% of Whirlpool's 2006 consolidated net sales of $18.1 billion) and other significant trade customers, and the ability of these trade customers to maintain or increase market share; (3) Whirlpool's ability to complete the integration of Maytag Corporation on a timely basis and fully realize the anticipated benefits of the merger while remaining within the current cost estimates; (4) demand for Whirlpool's products, including the strength of the U.S. building industry and the level of interest rates; (5) the ability of Whirlpool to achieve its business plans, including productivity improvements, cost control, leveraging of its global operating platform, acceleration of the rate of innovation and realization of cost-based price increases; (6) fluctuations in the cost of key materials (including steel, oil, plastic, resins, copper and zinc) and components and the ability of Whirlpool to offset cost increases; (7) the ability of suppliers of critical parts, components and manufacturing equipment to deliver sufficient quantities to Whirlpool in a timely and cost-effective manner; (8) our ability to attract, develop and retain executives and other qualified employees; (9) changes in market conditions, health care cost trends and regulatory changes that could increase future funding obligations for pension and post retirement benefit plans; (10) the cost of compliance with environmental and health and safety regulations, including regulations in Europe regarding appliance disposal; (11) potential exposure to product liability claims, including claims that may arise through Whirlpool's regular investigations of potential quality issues as part of its ongoing effort to provide quality products to consumers; (12) the impact of labor relations; (13) Whirlpool's ability to obtain and protect intellectual property rights; (14) volatility in Whirlpool's effective tax rate; (15) the ability of Whirlpool to manage foreign currency fluctuations; (16) global, political and/or economic uncertainty and disruptions, especially in Whirlpool's significant geographic regions, including uncertainty and disruptions arising from natural disasters, or terrorist attacks; and (17) risks associated with operations outside the United States. Additional information concerning these and other factors can be found in Whirlpool Corporation's filings with the Securities and Exchange Commission, including the most recent annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K.
============= ============
By PR NewsWire (October 27,2007)
Record International Performance
BENTON HARBOR, Mich., Oct. 23 /PRNewswire-FirstCall/ -- Whirlpool Corporation (NYSE: WHR) announced today that third-quarter 2007 earnings from continuing operations were $175 million, or $2.20 per diluted share, up approximately 31 percent from the $134 million, or $1.68 per diluted share, reported in the same period last year. Net sales of $4.8 billion, which were impacted by a weak U.S. market, remained unchanged from last year's levels.
Third-quarter earnings reflected strong improvement within the company's international businesses, cost-efficiency realization associated with last year's acquisition of Maytag, productivity improvements, cost controls and lower global taxes. The company's results also included $41 million of gains associated with asset sales and the sale of an investment, compared to the $42 million of asset sale gains reported in the previous year period. Results were adversely affected by significantly higher material and oil-related costs, lower demand within the United States and unfavorable currency.
"Our global operating platform, product innovation and strong consumer brands have enabled us to effectively manage through both the unprecedented global material cost environment which began more than three years ago, and more recent industry demand declines within the United States," said Jeff M. Fettig, chairman and chief executive officer of Whirlpool Corporation. "The international economic environment has remained favorable and our international businesses continue to deliver record financial results. The combination of record material and oil-related cost increases and weaker than expected appliance demand in the U.S. have negatively impacted our North American business."
During the quarter, Whirlpool Corporation repurchased $150 million of common stock, bringing its year-to-date total to $251 million. Approximately $214 million remains available under the company's $500 million share repurchase program. NEW INNOVATIONS
-- The Whirlpool brand launched:
-- The Duet Steam washer and dryer. The washer naturally steams away
tough stains, from grass to grease, without pre-treating. The
dryer, a first-of-its-kind laundry innovation, removes odors and
reduces wrinkles from clothing.
-- The Maytag brand launched:
-- The special edition Maytag Centennial top-load washer and dryer in
celebration of the 100th anniversary of the first Maytag washer.
The special edition Centennial system offers retro styling with a
center-knob control and gold console trim and kick plate. The
washer features a heavy-gauge steel lid and commercial-grade
strength.
-- A new SteamClean option for dishwashers. SteamClean delivers
enhanced cleaning performance on glassware for soil and spotting.
Whirlpool Corporation is the first in the industry to launch a
steam option in dishwashers.
-- Laundry 123 organizational accessories to pair with Maytag Epic
and Maytag Bravos products. Laundry 123 features slide-out and
protective work surface options. Vibration pads help eliminate
noise and movement of items placed on the work surface, and an
elevated back acts as a guardrail to keep items from falling
behind machines. Laundry towers fit beside or between the washer
and dryer and feature oversized storage drawers, a pull-out supply
tray and a retractable steel hanging rod.
-- The Jenn-Air brand launched:
-- A complete collection of small-scale appliances for the living
room, media room and other rooms beyond the kitchen. The
collection includes a wine cellar, beverage center, ice machine,
under counter refrigerator, warming and refrigerator drawers and
convenience oven.
-- A new SteamClean option for dishwashers. The SteamClean option
enhances an existing wash cycle, such as the China/Crystal cycle,
with improved soil and spot cleaning to produce an even more
lustrous shine. In addition to steam, these models also have a
new silent sound package, making an already quiet dishwasher even
quieter.
-- Whirlpool launched Affresh washer cleaner tablets, which remove odor-
causing residue in washing machines.
-- Whirlpool Europe launched:
-- An espresso coffee maker integrated into a Whirlpool side-by-side
refrigerator. The coffee maker uses coffee pouches and is able to
provide up to 35 cups of coffee at a time.
-- Bauknecht and Whirlpool steam option washing machines designed to
make laundry hygienically clean even at low temperatures. The
steam option freshens garments quickly and helps to gently remove
tough stains.
-- Whirlpool Latin America launched:
-- More than 25 Brastemp refrigeration models across four lines:
Club, Active!, Duplex and Clean. The Club refrigerator line
offers exclusive can dispensers in the door. Active! refrigerators
feature a pre-programmable compartment that allows consumers to
cool drinks to desired temperatures and an alarm that sounds when
it is ready.
-- The Brastemp vertical Flex Freezer. The Brastemp Flex allows
consumers to choose between using the product as a freezer or as a
refrigerator with a simple touch of a button.
-- The Consul air acclimatizer to improve the quality of the
environment and the health of those who live in one of the driest
regions of Brazil. The product has a water capacity of 6.5 liters,
washable filter, timer and a switch to change the function from
air refresh to humidify.
-- Whirlpool Asia launched:
-- The PURAFRESH water purifier in India, marking its entree into the
water category. PURAFRESH is India's first and only direct flow
reverse osmosis water purifier with no storage tank, enabling
immediate consumption of freshly purified water.
-- New Maytag top-load and front-load washing machines in Australia.
The washing machines offer the same durable and commercial quality
that Maytag washers have been built with for 100 years.
-- A line of Maytag cooking appliances for the Australian market. The
range of premium kitchen appliances consists of cook-tops, built-
in coffee machines, built-in ovens and microwaves, elegant range
hoods and freestanding cookers.
AWARDS AND ACCOMPLISHMENTS
-- Whirlpool Corporation was named one of the top global companies for
leaders by Hewitt Associates, FORTUNE magazine and The RBL Group, in
acknowledgement for Whirlpool's focus on developing leaders within the
company.
-- Whirlpool Corporation was ranked among the top 20 innovators in the
consumer products segment by The Patent Board, the leading independent
provider of best practices research, tools and metrics for patent
analysis and intellectual property investment.
-- Whirlpool Corporation was named to the 2007/2008 Dow Jones
Sustainability North American, KLD Global Sustainability and FTSE4Good
Indexes, three international investment analysis tools that evaluate
corporate performance using economic, environmental and social
criteria.
-- Whirlpool was selected as one of the best companies to work for in
Brazil according to the research by Exame Magazine, in partnership
with Foundation Institute of Administration / Economy and
Administration College of the University of Sao Paulo. This is the
11th consecutive time Whirlpool has been named to the list.
-- Whirlpool was recognized as one of the top 100 companies for corporate
giving based on a survey of Fortune 500 companies by The Chronicle of
Philanthropy.
-- Whirlpool Chairman and CEO Jeff M. Fettig received the 2007 Hunt-
Scanlon Human Capital Advantage Award, which recognizes a leading
chief executive who has displayed excellence in human capital
management while increasing shareholder value.
-- The Maytag Repairman was nominated for Advertising Week 2007's
"Favorite Advertising Icon".
-- In Germany, the Bauknecht stainless steel surface ProTouch was awarded
the Innovation Prize of the "Besser Leben" (Better Life) initiative.
The new Bauknecht dishwasher generation with PowerClean function won a
Gold award.
-- In Brazil, Brastemp brand was named one of the prominent brands by
Reader's Digest magazine. The Brastemp brand placed first in the
refrigeration category. Readers also selected Brastemp as the 4th
most trusted brand in Brazil across all consumer product categories.
THIRD-QUARTER REGIONAL REVIEW*
Whirlpool North America third-quarter revenue of $2.9 billion was down 8 percent versus the prior year period primarily due to weak U.S. industry demand and lower OEM shipments. Industry unit shipments of major appliances (T7)** declined 5 percent for both the current quarter and year-to-date period.
Operating profit of $132 million declined 24 percent from the previous year period primarily due to the continuation of significant material and oil- related cost increases for base metals, component parts, steel and fuel, as well as lower than expected U.S. demand. Continued strong acquisition efficiency realization partially offset the higher costs.
Industry shipment trends are expected to improve during the fourth quarter following five consecutive quarters of year-over-year declines. Based on current economic conditions, the company now expects full-year 2007 U.S. industry unit shipments to decline approximately 4 percent.
Whirlpool Europe's revenue of $1 billion increased 12 percent from the prior-year period representing a third-quarter record, led by the region's top selling Whirlpool brand and new innovative product offerings. Excluding currency translation, sales increased by 3 percent. Industry demand during the quarter was estimated to have increased approximately 2 percent.
Operating profit increased from $57 million to $84 million during the period. The current quarter included a $32 million asset sale gain compared to an $8 million gain reported in the prior year. Results also reflected productivity improvements as well as the benefits from higher volume and improved product mix. Partially offsetting the improved operating profit performance were significantly higher material costs during the quarter.
Based on current economic conditions in Europe, the company continues to expect full-year industry unit shipments to increase approximately 2 to 3 percent.
Whirlpool Latin America reported record third-quarter revenue and operating profit. Revenue increased 23 percent to $813 million driven by strong appliance industry growth, the impact from cost-based price adjustments implemented during the quarter, continued new innovative product introductions and strong economic conditions throughout the region. Excluding the impact from currency, sales for appliances and compressors increased approximately 10 percent. Regional unit shipments of appliances were slightly below industry demand which grew by approximately 16 percent, primarily due to the implementation of cost-based price adjustments during the quarter. For the year, regional shipments continued to exceed industry growth.
Operating profit increased 85 percent to an all-time quarterly record of $103 million during the period and margins increased to 12.7 percent from the 8.5 percent reported last year. Strong demand for the region's top-selling innovative brands, improved pricing, strong productivity and tax credits mitigated higher material costs during the quarter.
Based on the current economic environment in Brazil, the company continues to expect full-year 2007 appliance industry unit shipments to increase 15 to 20 percent.
Whirlpool Asia reported quarterly sales of $123 million, increasing 18 percent from the prior-year period. Excluding the impact of currency, sales increased approximately 7 percent led by successful new innovative product launches and improved product mix within India, the region's largest market. The regional operating loss of $5 million increased from last year's level primarily due to increased brand investment and higher inventory transition costs.
Based on current economic conditions in Asia, the company continues to expect full-year 2007 industry unit shipments to increase 5 to 10 percent.
* During the first quarter of 2007, the company adopted changes to its segment reporting consistent with the methodology the chief executive officer now uses to evaluate each segment's operating and financial results. The company previously included the financial results for its Caribbean operations and exports of certain portable appliances to Europe within its North America business segment. The results for these businesses are now being reported within the Latin America and Europe segments, respectively. In addition, the company has reallocated certain costs previously included within corporate administrative expense to each of the respective regions. Regional results for 2006 have been reclassified to reflect these changes.
** T7 refers to the following household appliance categories: washers, dryers, refrigerators, freezers, dishwashers, ranges and compactors.
Outlook
"While current economic conditions are challenging, we have continued to invest in our strategy, completed the integration of the largest acquisition in company history and introduced a record number of new innovative products," said Fettig. "We are well positioned to further increase shareholder value in the future as we continue to build our position as a strong global consumer products company. The benefits from our global operating platform, innovative consumer brands, and acquisition efficiencies in excess of $400 million will enable us to increase earnings and free cash flow during 2007, despite record material cost increases of approximately $570 million and weak demand trends in the U.S. market."
Whirlpool continues to expect full-year 2007 earnings per diluted share from continuing operations to be in the $8.00 to $8.50 range and free cash flow of $600 million to $650 million.
Cash Flow Reconciliation
The table below reconciles projected 2007 cash provided by continuing operations determined in accordance with generally accepted accounting principles (GAAP) in the United States to free cash flow, a non-GAAP measure. Management believes that free cash flow provides shareholders with a relevant measure of liquidity and a useful basis for assessing the company's ability to fund its activities and obligations. There are limitations to using non-GAAP financial measures, including the difficulty associated with comparing companies that use similarly named non-GAAP measures whose calculations may differ from the company's calculations. As defined by the company, free cash flow is cash provided by continuing operations after capital expenditures and proceeds from the sale of assets/businesses. Free cash flow does not include proceeds from the sale of Maytag businesses. The projections shown here are based upon many estimates and are inherently subject to change based on future decisions made by management and the board of directors of the company, and significant economic, competitive and other uncertainties and contingencies. (millions of dollars)
Cash provided by continuing operations $1,100-$1,150
Capital expenditures ~(600)
Proceeds from sale of assets/non-Maytag businesses ~100
-----------------
Free Cash Flow $600-$650
About Whirlpool Corporation
Whirlpool Corporation is the world's leading manufacturer and marketer of major home appliances, with annual sales of approximately $18 billion, 73,000 employees, and 70 manufacturing and technology research centers around the world. The company markets Whirlpool, Maytag, KitchenAid, Jenn-Air, Amana, Brastemp, Bauknecht and other major brand names to consumers in nearly every country around the world. Additional information about the company can be found at http://sev.prnewswire.com/household-consumer-cosmetics/20071023/CLTU02323102007-1.html#.
Whirlpool Additional Information:
This document contains forward-looking statements that speak only as of this date. Whirlpool disclaims any obligation to update these statements. Forward-looking statements in this document include, but are not limited to, statements regarding expected earnings per share, cash flow, productivity and material and oil-related prices, as well as expectations as to the integration with Maytag Corporation. Many risks, contingencies and uncertainties could cause actual results to differ materially from Whirlpool Corporation's forward-looking statements. Among these factors are: (1) intense competition in the home appliance industry reflecting the impact of both new and established global competitors, including Asian and European, and the strength of trade customers; (2) Whirlpool's ability to continue its strong relationship with Sears Holding Corporation in North America (accounting for approximately 14% of Whirlpool's 2006 consolidated net sales of $18.1 billion) and other significant trade customers, and the ability of these trade customers to maintain or increase market share; (3) Whirlpool's ability to complete the integration of Maytag Corporation on a timely basis and fully realize the anticipated benefits of the merger while remaining within the current cost estimates; (4) demand for Whirlpool's products, including the strength of the U.S. building industry and the level of interest rates; (5) the ability of Whirlpool to achieve its business plans, including productivity improvements, cost control, leveraging of its global operating platform, acceleration of the rate of innovation and realization of cost-based price increases; (6) fluctuations in the cost of key materials (including steel, oil, plastic, resins, copper and zinc) and components and the ability of Whirlpool to offset cost increases; (7) the ability of suppliers of critical parts, components and manufacturing equipment to deliver sufficient quantities to Whirlpool in a timely and cost-effective manner; (8) our ability to attract, develop and retain executives and other qualified employees; (9) changes in market conditions, health care cost trends and regulatory changes that could increase future funding obligations for pension and post retirement benefit plans; (10) the cost of compliance with environmental and health and safety regulations, including regulations in Europe regarding appliance disposal; (11) potential exposure to product liability claims, including claims that may arise through Whirlpool's regular investigations of potential quality issues as part of its ongoing effort to provide quality products to consumers; (12) the impact of labor relations; (13) Whirlpool's ability to obtain and protect intellectual property rights; (14) volatility in Whirlpool's effective tax rate; (15) the ability of Whirlpool to manage foreign currency fluctuations; (16) global, political and/or economic uncertainty and disruptions, especially in Whirlpool's significant geographic regions, including uncertainty and disruptions arising from natural disasters, or terrorist attacks; and (17) risks associated with operations outside the United States. Additional information concerning these and other factors can be found in Whirlpool Corporation's filings with the Securities and Exchange Commission, including the most recent annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K.
============= ============
By PR NewsWire (October 27,2007)
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