The combination of record material and oil-related cost increases and weaker than expected appliance demand in the U.S. have negatively impacted Whirlpool's North American business.

Whirlpool's North American third-quarter revenue of $2.9 billion was down 8 percent versus 2006 primarily due to weak U.S. industry demand and lower OEM shipments. Industry unit shipments of major appliances declined 5 percent for both the current quarter and year-to-date period.

Operating profit of $132 million plummeted 24 percent from the third quarter of 2006 due to what Whirlpool says is "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."

The company expects shipments 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.

"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 Jeff M. Fettig, chairman and chief executive officer of Whirlpool Corporation. Fettig said the company's global operating platform and acquisition efficiencies in excess of $400 million will enable Whirlpool to increase earnings during 2007, despite record material cost increases and weak demand trends in the U.S. market.

"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 Fettig. "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."