We are pleased with our global operating performance given the significant magnitude of the material cost increases in the second quarter and throughout the first half of the year
Jeff M. Fettig, Whirlpool's chairman, president and chief executive officer.

Whirlpool Corporation today announced second-quarter 2005 net earnings of $96 million, or $1.42 per diluted share, compared to $106 million, or $1.53 per diluted share, in the same period last year. The decline was driven by significantly higher material and oil-related costs.

Net sales of $3.6 billion were a second-quarter record and increased 9 percent from last year. Excluding currency translations, net sales increased by approximately 5 percent.

"We are pleased with our global operating performance given the significant magnitude of the material cost increases in the second quarter and throughout the first half of the year," said Jeff M. Fettig, Whirlpool's chairman, president and chief executive officer. "The success of the actions we have been taking to adjust to the global cost environment has positioned us well for the balance of the year."

The company's second-quarter results reflect approximately $180 million of higher material and oil-related costs, as well as unfavorable currency, and higher restructuring expense compared to the same period last year. These costs were mitigated through a combination of factors, including price increases, mix improvement, productivity and cost-control initiatives, as well as a lower effective tax rate.

Fettig added: "We expect positive year-over-year earnings momentum to increase during the remainder of the year as our combined ongoing actions continue to build and overcome the material cost increases."

RECENT MILESTONES
* Whirlpool Corporation has been named to the "2005 List of Top 20 U.S. Companies for Leaders," making this the second consecutive year the company has been acknowledged for its focus on developing leaders within the company. Sponsored by global human resources services firm Hewitt Associates and The Human Resource Planning Society (HRPS), the "Top 20 Companies for Leaders" were selected by an independent panel of judges.

* Whirlpool Corporation has been named one of "25 Noteworthy Companies for Diversity" by DiversityInc magazine. The company was recognized for its excellent community philanthropy, employee-resource groups and measurement of diversity success.

Whirlpool North America operations delivered record second-quarter revenue of $2.2 billion, an increase of 5 percent from the prior-year period. The company's U.S. unit shipments of major appliances (T-7) were essentially equal to last year as strong Whirlpool branded performance was offset by lower OEM shipments. Total U.S. appliance industry unit shipments were up approximately 2 percent. Sales were positively impacted by price increases and a favorable product mix.

Continued higher material and oil-related costs led to a 12-percent decline in operating profit. The impact from higher costs and planned manufacturing downtime was mitigated through improved pricing and mix, productivity gains and strong cost controls. During the quarter, the company announced an additional price increase on selected products, effective July 3, to mitigate higher oil-related costs.

Based on current economic conditions, the company expects full-year industry unit shipments in 2005 to increase by approximately 1-to-2 percent.

On July 17, 2005, Whirlpool Corporation announced that it has made a proposal to acquire Maytag Corporation (NYSE:MYG) for $17 per Maytag share. The proposal represents a 21 percent premium over the price offered by Triton Acquisition Holding in their current agreement with Maytag. Whirlpool's proposed transaction is valued at $2.3 billion in cash and stock (based on assumed debt of $969 million).

"We believe that our proposal is both financially and strategically compelling," said Fettig. "The combination would deliver significant value to both Maytag and Whirlpool shareholders, and lead to substantial efficiencies with direct benefits to consumers and trade customers." Whirlpool's proposal is subject to the satisfactory completion of due diligence and negotiation of a mutually acceptable definitive merger agreement.