We expect flat-to-moderate industry unit shipment growth during the second half of the year. Despite somewhat softer near-term demand, the underlying industry fundamentals remain positive.".
Jeff M. Fettig, CEO, Whirlpool

Whirlpool Corporation's second quarter net sales rose 33 percent to a record $4.7 billion, reflecting the acquisition of Maytag Corporation and strong consumer demand. Excluding the company's recent acquisition, net sales increased approximately 5 percent.

Net earnings from continuing operations for the second quarter of 2006 were $100 million, or $1.26 per diluted share, compared to $96 million, or $1.42 per diluted share in the same period last year. Second quarter net earnings include the results and integration costs of the company's recent acquisition of Maytag.

During the second quarter, the company announced its intention to sell the Hoover floor-care, Dixie Narco vending systems, Amana commercial microwave and Jade commercial products appliance businesses. The financial results from these businesses are included in discontinued operations. Total net earnings for the second quarter, including discontinued operations, were $91 million or $1.14 per diluted share.

"All of our regional businesses delivered higher unit volume, sales and operating profit performance during the quarter," said Jeff M. Fettig, Whirlpool's chairman and chief executive officer. We expect material and oil-related cost increases to continue to accelerate during the second-half of 2006. Accordingly, the company is implementing cost-based price adjustments, productivity initiatives and cost controls to offset the heightened cost environment. Our Maytag integration activities are progressing at an efficient and disciplined pace and remain on-track with previous expectations."

Fettig added, "Global industry growth for the second quarter was in-line with our expectations and consistent with our prior guidance. As previously communicated, we expect flat-to-moderate industry unit shipment growth during the second half of the year and anticipate global industry growth of 1-to-2 percent in 2007. Despite somewhat softer near-term demand, the underlying industry fundamentals remain positive."

"We continue to make excellent progress toward the integration of our Maytag business and remain confident in our ability to realize the value creating opportunities of this combination," said Fettig.

Fettig continued: "The year is progressing as previously expected and we are pleased with our first half-year performance. We receive positive feedback from consumers and trade customers every day validating the strength of our product innovation portfolio and continue to accelerate the advancement of innovation as a core competency throughout the company. We have been addressing the heightened material and oil-related cost environment by driving total cost productivity, implementing cost-based price adjustments, controlling spending by reducing overhead and infrastructure while increasing investments in consumer activities and managing our overall mix of business. These actions are driving success in the current economic environment."