Whirlpool Corporation Announces Changes in North American Manufacturing Facilities; Evansville, Indiana Plant to Close; 2009 Out
August 28 2009 - 10:30AM
PR Newswire (US)
BENTON HARBOR, Mich., Aug. 28 /PRNewswire-FirstCall/ -- Whirlpool
Corporation (NYSE:WHR) announced today changes to its North
American manufacturing operations resulting in the closure of its
manufacturing facility in Evansville, Indiana. The closure will
eliminate approximately 1,100 full time positions in mid-2010.
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Production of top freezer refrigerators made at Evansville will be
transferred to one of the company's existing manufacturing
facilities in Mexico. Production of icemakers produced in
Evansville will be relocated to a company-owned site yet to be
determined. The announcement follows a comprehensive review of
alternatives for product consolidation within the refrigeration
product category. The company also said that it is currently
evaluating options for the best location for the Refrigeration
Product Development Center, which is co-located with the Evansville
manufacturing facility and has approximately 300 employees. A
decision is expected in the near future. "This was a difficult but
necessary decision," said Al Holaday, vice president, North
American Manufacturing Operations, Whirlpool Corporation. "To
reduce excess capacity and improve costs the decision was made to
consolidate production within our existing North American
manufacturing facilities. This will allow us to streamline our
operations, improve our capacity utilization, reduce product
overlap between plants, and meet future production requirements.
"We are announcing this decision nearly one-year in advance as part
of our commitment to make the transition as smooth as possible."
Whirlpool is committed to helping the affected employees and their
families with the transition. Conversations regarding transition
assistance will begin immediately. The company also said it would
work with local and state officials to help ensure that all
available training resources are made available to affected
employees, and to reposition affected facilities for future job
development opportunities within the community. The company's
earnings and cash flow outlook for the full-year 2009 remain
unchanged from the last update contained in its earnings release
dated July 22, 2009. About Whirlpool Corporation Whirlpool
Corporation is the world's leading manufacturer and marketer of
major home appliances, with annual sales of approximately $19
billion in 2008, 70,000 employees, and 67 manufacturing and
technology research centers around the world. The company markets
Whirlpool, Maytag, KitchenAid, Jenn-Air, Amana, Brastemp, Consul,
Bauknecht and other major brand names to consumers in nearly every
country around the world. Additional information about the company
can be found at http://www.whirlpoolcorp.com/. Whirlpool Additional
Information This document contains forward-looking statements about
Whirlpool Corporation and its consolidated subsidiaries
("Whirlpool") that speak only as of this date. Whirlpool disclaims
any obligation to update these statements. Forward-looking
statements in this document may include, but are not limited to,
statements regarding expected earnings per share, cash flow,
productivity and material and oil-related prices. Many risks,
contingencies and uncertainties could cause actual results to
differ materially from Whirlpool's forward-looking statements.
Among these factors are: (1) changes in economic conditions which
affect demand for our products, including the strength of the
building industry and the level of interest rates; (2) the effects
of the global economic crisis on our customers, suppliers and the
availability of credit; (3) Whirlpool's ability to continue its
relationship with significant trade customers, including Sears
Holding Corporation in North America (accounting for approximately
11% of Whirlpool's 2008 consolidated net sales of $18.9 billion)
and the ability of these trade customers to maintain or increase
market share; (4) intense competition in the home appliance
industry reflecting the impact of both new and established global
competitors, including Asian and European manufacturers; (5) the
ability of Whirlpool to manage foreign currency fluctuations; (6)
litigation including product liability and product defect claims;
(7) the ability of Whirlpool to achieve its business plans,
productivity improvements, cost control, leveraging of its global
operating platform, and acceleration of the rate of innovation; (8)
fluctuations in the cost of key materials (including steel, oil,
plastic, resins, copper and aluminum) and components and the
ability of Whirlpool to offset cost increases; (9) the ability of
suppliers of critical parts, components and manufacturing equipment
to deliver sufficient quantities to Whirlpool in a timely and
cost-effective manner; (10) health care cost trends and regulatory
changes that could increase future funding obligations for pension
and other postretirement benefit plans; (11) Whirlpool's ability to
obtain and protect intellectual property rights; (12) global,
political and/or economic uncertainty and disruptions, especially
in Whirlpool's significant geographic regions, including
uncertainty and disruptions arising from natural disasters or
terrorist attacks; (13) the effects of governmental investigations
or related actions by third parties; (14) the impact of labor
relations; (15) our ability to attract, develop and retain
executives and other qualified employees; (16) the cost of
compliance with environmental and health and safety regulations.
Additional information concerning these and other factors can be
found in Whirlpool Corporation's filings with the Securities and
Exchange Commission, including the most recent annual report on
Form 10-K, quarterly reports on Form 10-Q, and current reports on
Form 8-K.
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Whirlpool Corporation CONTACT: Media: Whirlpool Corporation Press
Office, +1-269-923-7405, , or Financial: Greg Fritz,
+1-269-923-2641, Web Site: http://www.whirlpoolcorp.com/
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