U.S.

Whirlpool Flushing Up To 6,000 Jobs

By CBSNews.com staff CBSNews.com staff

December 13, 2000 / 3:45 PM EST / CBS

Whirlpool Corp. announced a restructuring plan Wednesday that could cut up to 6,000 jobs — 10 percent of its work force — and close some plants.

The appliance maker also said that fourth-quarter earnings would be significantly below expectations due to weak sales.

A marked decline in consumer demand for large kitchen appliances in North America and elsewhere is partly to blame for the work force reduction, said Whirlpool Chairman and CEO David R. Whitwam.

The company has also been squeezed by competitive pricing pressures and rising materials costs, he said.

Whirlpool Corp.

HEADQUARTERS: Benton Harbor, Mich.
FOUNDED: 1911, as Upton Machine Co. in St. Joseph, Mich.
EMPLOYEES: 60,000.
CLAIM TO FAME: World's largest manufacturer and marketer of major home appliances.
MAJOR U.S. OPERATIONS: Benton Harbor and St. Joseph; Fort Smith, Ark.; Evansville and LaPorte, Ind.; Oxford, Miss.; Clyde, Dayton, Findlay, Greenville and Marion, Ohio; Tulsa, Okla; and La Vergne, Tenn.
FOREIGN OPERATIONS: Argentina, Brazil, Canada, China, France, Germany, Italy, India, Mexico, Slovakia, South Africa and Sweden.

The job cuts will occur over the next year as the company takes a series of restructuring charges totaling between $300 million and $350 million, company spokesman Christopher Wyse said. He said no decision has been made about where the jobs will be eliminated.

Whirlpool, which is based in Benton Harbor, also has manufacturing and research facilities in neighboring St. Joseph. It employs about 2,500 in southwestern Michigan.

It also has major operations in Arkansas, Indiana, Mississippi, Ohio and Tennessee, as well as in 12 other nations, including Mexico and Canada.

Whirlpool said its fourth-quarter earnings will be similar to those from the third quarter, when the company reported earnings of 98 cents per share. Analysts surveyed by First Call/Thomson Financial had expected earnings of $1.42 per share.

The company plans to reduce its selling, general and administrative costs by $100 million during the next two years. The actions are expected to yield annual savings of $225 to $250 million, Whitwam said.

In afternoon trading on the New York Stock Exchange, Whirlpool shares were off $3.88 at 40.31 a share. The Whirlpool stock fell $2¾ to $41 and 7/16. Overall, the NYSE blue chip stocks had a strong advance, overcoming Whirlpool's earnings warning and weaker-than-expected November retail sales.

The blue chips claimed gains for the second day in a row.

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