"We have adjusted to this environment by aggressively driving higher levels of productivity, by implementing appropriate price increases and by accelerating the rate of new product innovation to the market"
Jeff Fettig, Whirlpool's chairman, president and chief executive officer

Whirlpool Corporation (WHR) today announced third-quarter 2004 net earnings of $101 million compared to $105 million in the same period last year. Third-quarter net sales of $3.32 billion increased 6.6 percent from the same period last year.

"During the third quarter we had record sales on continued strong consumer demand for our brands around the world. Market growth remained positive, although growth rates declined moderately from first-half levels," said Jeff Fettig, Whirlpool's chairman, president and chief executive officer.

Year-to-date sales of $9.59 billion increased 8.7 percent compared to the prior-year period. Excluding currency translations, year-to-date sales increased approximately 6 percent. Year-to-date net earnings of $4.46 per diluted share increased 7.7 percent from the prior-year period.

Fettig added: "Our quarterly operating results were negatively impacted by raw material cost increases and record high oil prices. The magnitude of these cost increases could not be offset by our record level of productivity and overall business spending controls. Additionally, material and component supply shortages impacted our sales."

"We have taken specific actions to deal with this environment, which include driving higher levels of productivity in all business operations, implementing price increases of approximately 5-to-10 percent in most key markets around the world, including the U.S., and accelerating the rate of innovation of new products to the market.

"We believe our actions in total will enable us to overcome these significant cost increases, but the full effect of these benefits will not be realized until 2005. As a result, we now expect our full-year earnings per share to be in the range of $5.85-to-$5.95, versus our previous guidance of $6.20-to-$6.35, and free cash flow(1) in the $300 million range," Fettig said.

Third-Quarter Highlights

-- Net sales and unit shipments were record third-quarter performances for the company.

-- Global Finance magazine recently selected Whirlpool as the "Best Company in the World" in the consumer durable sector. The recognition is part of the annual Global Finance survey of top regional and global companies in 28 industries.

-- Whirlpool received the prestigious 2004 American Society for Training and Development "Best Award." The Best Award recognizes organizations that continually support organization-wide learning to improve business results.

-- Habitat for Humanity International recognized Whirlpool for surpassing the 50,000 milestone in appliance donations to families in need. Whirlpool donates a refrigerator and range to every Habitat home built in North America and Europe.

Fettig concluded: "In the current environment, our business is being challenged by significant increases in material and logistics costs, as well as shortages of key materials and components. We have adjusted to this environment by aggressively driving higher levels of productivity, by implementing appropriate price increases and by accelerating the rate of new product innovation to the market. Our global operating platform, strong consumer brands and innovation capabilities provide us with the necessary tools to overcome these challenges and will enable us to deliver a solid year of operating results in 2004 and position us well going into 2005."