Whirlpool Corporation (WHR) today announced first-quarter 2003 results that were in line with expectations.

Net earnings of $91 million, or $1.32 per diluted share, compared to a net loss of $529 million, or $7.63 per diluted share, in the same period last year. The first-quarter loss in 2002 included one-time charges totaling $8.95 per diluted share for goodwill impairment (relating to a change in accounting principle) and restructuring activities.

First-quarter net sales of $2.7 billion increased 6 percent from the same period last year. Excluding consolidated sales from the company's 2002 acquisitions -- Polar S.A. of Poland and Vitromatic S.A. de C.V. of Mexico -- net sales increased 2 percent.

David R. Whitwam
Chairman and CEO
"Our businesses delivered a solid performance for the quarter, despite uncertainty in global markets and generally weak industry demand. Our operations significantly improved productivity and lowered costs, which helped partially offset year-over-year increases in pension, healthcare, energy and material costs. Benefits from restructuring also contributed to the earnings performance."

Whirlpool North America's sales of $1.8 billion increased 5 percent from the prior year record period. Excluding Whirlpool Mexico, sales were up slightly. Operating profit declined 12 percent, due primarily to year-over-year increases in pension and employee-related healthcare costs. The company is currently evaluating additional measures to reduce the impact of these significant year-over-year cost increases. Savings from productivity improvements and restructuring partially offset the decline.

U.S. industry unit shipments of major appliances (T7) declined nearly 2 percent from the prior year period. Based on current economic conditions, the company now expects full-year industry shipments to be flat compared to last year's level. The company had previously forecast an industry increase of 2 percent.

"We continue to see uncertain economic and geopolitical environments in most markets in which we operate," said Whitwam. "In this environment, Whirlpool operations will maintain the emphasis on productivity and other cost saving efforts as our global brands continue their rapid rate of innovative product introductions to consumers worldwide. In addition, we are evaluating measures to reduce the impact from year-over-year increases in pension and employee-related healthcare costs."

Whitwam added: "Based on our revised industry outlook for Whirlpool's key markets around the world, we are revising full-year earnings-per-share guidance to $5.90-$6.10."

The company had previously forecast full-year earnings per share of $6.20 to $6.40.