Whirlpool Corporation Reports Second-Quarter 2014 Results

          Whirlpool Corporation Reports Second-Quarter 2014 Results

Record Operating Profit in North America Region

Business Investments Continue

PR Newswire

BENTON HARBOR, Mich., July 23, 2014

BENTON HARBOR, Mich., July23, 2014 /PRNewswire/ -- Whirlpool Corporation
(NYSE: WHR) announced today second-quarter GAAP net earnings of $179 million,
or $2.25 per diluted share, compared to $198 million, or $2.44 per diluted
share, reported for the same prior-year period. Ongoing business earnings per
diluted share^(1) increased to a second quarter record $2.62, compared to
$2.37 in the prior-year period, mainly driven by improved product price and
mix, ongoing cost productivity and the benefit of cost and capacity-reduction
initiatives.

Whirlpool Corporation Logo

Net sales in the quarter were $4.7 billion compared to $4.7 billion during the
same prior-year period. Excluding the impact of both foreign currency and
Brazilian (BEFIEX) tax credits, sales increased approximately 1 percent.

"The second-quarter results were in line with our expectations as our North
America Region delivered record operating profit," said Jeff M. Fettig,
chairman and chief executive officer of Whirlpool Corporation. "Overall, the
underlying fundamentals of our business remain strong and we continue to
invest in our business through innovative new products and acquisitions."

Second-quarter GAAP operating profit totaled $291 million, compared to $328
million in the same prior-year period. Ongoing business operating profit^(2)
totaled $330 million, or 7.1 percent of sales, compared to $335 million, or
7.1 percent of sales, in the same prior-year period. Improved product price
and mix, ongoing cost productivity and the benefit of cost and
capacity-reduction initiatives were more than offset by lower unit volumes,
higher material costs, foreign currency and increased investments in
marketing, technology and products.

During the six months ended June30, 2014, the company reported cash used in
operating activities of $(368) million compared to $(196) million in the
prior-year period. On a year-to-date basis, Whirlpool Corporation reported
free cash flow^(3) use of $(622) million, compared to free cash flow^(3) use
of $(373) million in the same prior-year period. Free cash flow^(3) use was
primarily driven by increased capital spending and higher levels of inventory
to supportproduct line transitions and new product launches in the second
half.

OUTLOOK

Whirlpool Corporation has adjusted its full-year 2014 guidance to reflect
trade customer inventory transitions in China related to the pending
acquisition of a majority stake in Hefei Rongshida Sanyo Electric Co., Ltd.
and investment expenses related to the pending acquisition of a majority stake
in Indesit Company S.p.A. The company expects full-year net earnings per
diluted share of $10.30 to $10.80 and full-year ongoing business earnings per
diluted share of $11.50 to $12.00.

                                  2014 Diluted EPS^(i)
                                  Ongoing       GAAP
Previous Outlook                  $12.00–$12.50 $11.05–$11.55
China Trade Inventory Transitions (0.50)        (0.50)
Indesit Investment Expenses       –             (0.25)
Current Outlook                   $11.50-$12.00 $10.30-$10.80
                                                2014 EPS Outlook
GAAP Diluted EPS^(i)                            $10.30–$10.80
Restructuring Expense                           ~0.95
Brazilian (BEFIEX) Tax Credits                  (0.18)
Investment Expense^(ii)                         ~0.46
Antitrust Resolutions                           0.02
Ongoing Business Diluted EPS                    $11.50–$12.00

(i) Diluted EPS available to Whirlpool.
(ii) Previous guidance of $0.21 was increased by $0.25 for Indesit investment
     expense.

For the full-year 2014, the company expects to generate free cash flow^(3) of
$600 million to $650 million. Included in this guidance are restructuring cash
outlays of up to $150 million, capital spending of $625 million to $675
million and U.S. pension contributions of approximately $160 million.

"For the balance of the year, we will benefit from increasing global demand,
new product introductions, previously announced price increases and strong
productivity," said Fettig. "We expect to acquire majority interests in Hefei
Sanyo and Indesit by the end of this year, all of which provides us with an
outstanding platform for growth and value creation in 2015 and beyond."

SECOND-QUARTER REGIONAL REVIEW

Whirlpool North America

Whirlpool North America reported second-quarter net sales of $2.7 billion
compared to $2.6 billion in the same prior-year period, an increase of over 3
percent. Excluding the impact of currency, sales increased approximately 4
percent.

The region reported a record second-quarter operating profit of $285 million,
or 10.6 percent of sales, compared to $262 million, or 10.1 percent of sales,
in the same prior-year period. Ongoing cost productivity and cost and
capacity-reduction benefits offset higher material costs, foreign currency and
increased investments in marketing, technology and products.

The company expects full-year 2014 industry unit shipments to increase by
approximately 5 percent.

Whirlpool Europe, Middle East and Africa

Whirlpool Europe, Middle East and Africa reported second-quarter net sales of
$746 million compared to $731 million in the same prior-year period. Excluding
the impact of currency, sales decreased approximately 3 percent.

The region reported second-quarter operating profit of $2 million, compared to
an operating loss of $(6) million in the same prior-year period. Ongoing cost
productivity, the benefit of cost and capacity-reduction initiatives, and
improved product price and mix more than offset lower unit volumes, foreign
currency and increased investments in marketing, technology and products.

The company expects full-year 2014 industry unit shipments to be flat to up 2
percent.

Whirlpool Latin America

Whirlpool Latin America reported second-quarter net sales of $1.1 billion,
compared to $1.2 billion in the same prior-year period. Excluding the impact
of currency and BEFIEX tax credits, sales declined less than 4 percent.

The region reported second-quarter operating profit of $87 million, compared
to $135 million in the same prior-year period. During the second quarter of
2013, the company monetized $24 million of BEFIEX tax credits. Ongoing
business segment operating profit^(4) totaled $87 million, or 8.0 percent of
sales, compared to $111 million, or 9.3 percent of sales, in the same
prior-year period. Improved product price and mix was more than offset by
lower unit volumes, higher material costs and foreign currency.

The company expects full-year 2014 industry unit shipments to be flat to down
3 percent.

Whirlpool Asia

Whirlpool Asia reported second-quarter net sales of $211 million compared to
$246 million in the same prior-year period. Excluding the impact of currency,
sales decreased approximately 9 percent.

The region reported second-quarter operating profit of $4 million, or 1.9
percent of sales, compared to $14 million, or 5.6 percent of sales, in the
same prior-year period. Improved price and mix and ongoing cost productivity
were more than offset by lower unit volumes and margins due to trade inventory
transitions in China related to the pending acquisition, as well as higher
material costs and foreign currency.

The company expects full-year 2014 industry unit shipments to be flat.

(1) A reconciliation of ongoing business earnings per diluted share, a
non-GAAP financial measure, to reported net earnings per diluted share
available to Whirlpool and other important information, appears below.

(2) A reconciliation of ongoing business operating profit, a non-GAAP
financial measure, to reported operating profit and other important
information, appears below.

(3) A reconciliation of free cash flow, a non-GAAP financial measure, to cash
provided by operating activities and other important information, appears
below.

(4) A reconciliation of ongoing business segment operating profit, a non-GAAP
financial measure, to reported segment operating profit and other important
information, appears below.

SECOND-QUARTER 2014 PRODUCT LEADERSHIP, INNOVATION AND AWARDS

Whirlpool Corporationis at the forefront of the home appliance industry -
with deep consumer insights and the strongest portfolio of brands worldwide.
Our products are uniquely positioned with consumers because they are as
inventive as they are practical. We offer compelling home solutions that
expand beyond our core appliance business. Across our company and around the
world, we are strengthening our consumer demand by delivering innovation that
matters to consumers and positioning our company for continued growth and
profitability.

Awards and Recognition

  oWhirlpool Corporation's new Whirlpool Duet steam dryer received the
    industry's first ENERGY STAR® qualification for clothes dryers. Over 400
    Whirlpool Corporation appliances carry the U.S. Environmental Protection
    Agency's ENERGY STAR label - more than any other manufacturer.
  oWhirlpool Corporation was a platinum sponsor of the Energy Efficiency
    Global Forum 2014, hosted by the Alliance to Save Energy. Whirlpool
    efficiency experts joined more than 120 leaders from around the world in
    sharing insights and key learnings on the topic of energy efficiency.
  oIn May, the Whirlpool Duet steam washer was named "Best Custom Wash" in
    the front-load category by a leading U.S. consumer publication.
  oIn May, the Maytag Bravos XL HE washer with steam was named "TLC Champ" in
    the modern top-load category by a leading U.S. consumer publication.
  oWhirlpool Latin America was named the best company of the electronics
    industry by Exame business magazine.
  oWhirlpool Latin America was recognized as the most innovative company in
    Brazil by INFO magazine, which focuses on technology.
  oAt the Women's Empowerment Principles event, hosted by the United Nations,
    Whirlpool Latin America received an honorary mention for its work in
    improving the lives of women in Brazil.

Product Innovation

  oIn North America, the new KitchenAid dishwasher features an optional
    ProScrub cycle that eliminates the need to pre-rinse dishes and a
    groundbreaking wash system that uses a unique, ultra-fine filter to filter
    100% of the wash water for a shorter overall wash cycle with less water
    usage.
  oThe Whirlpool 6th Sense induction cooktop, available in Europe, combines
    the power of induction with 6th Sense technology for greater intuitiveness
    and ease of use. With just one touch, consumers can pick from the most
    frequent cooking methods, and the large FlexiCook surface makes it easier
    than ever to prepare a variety of dishes.
  oIn Europe, the new Whirlpool refrigerator and freezer can be installed
    separately or as a pair, in both freestanding and built-in configurations,
    providing superior versatility for the home. The pair's lighting system
    and premium interior design make it easier to manage your groceries and
    meals, while the 6th Sense FreshControl and ShockFreeze technologies keep
    food fresh longer.
  oWhirlpool India's new line of Whirlpool Protton no-frost refrigerators use
    less energy than a CFL light bulb while making it easier for families to
    preserve their groceries and keep food fresh.
  oWhirlpool brand's 3D Cool Climate Control line of split air conditioners
    bring fast, powerful and uniform cooling to consumers in India. With three
    preset climate options, consumers can also quickly adjust the temperature
    during the country's changing summer conditions.

Product Line Growth

  oThe North America Region broadened its line of smart appliances with the
    launch of the Whirlpool smart front-load washer and dryer with Nest
    Technology. The laundry pair uses the Nest Application Programming
    Interface to help save consumers energy and keep their laundry fresh if
    the cycle ends while they are away.
  oThe Consul Facilite automatic washer offers consumers in Brazil's emerging
    middle class best-in-class quality at a price they can afford. Doing the
    laundry is less of a chore, thanks to the easy dosing detergent dispenser
    and environmentally friendly water reuse function.

Growth Beyond Core Appliances

  oWhirlpool Corporation and P&G introduced Swash, a revolutionary at-home
    clothing care system that reduces wrinkles, refreshes fabric, restores the
    fit lost after wear and preserves clothing. In just 10 minutes with the
    push of a button, the Swash system allows people to reduce or eliminate
    ironing, save on dry cleaning, and better care for and preserve clothes.

Geographic Expansion

  oThe Latin America region expanded its production of Whirlpool Max
    refrigerators - now locally manufactured and sold in Colombia,
    strengthening the brand's presence outside of the Brazilian market.

About Whirlpool Corporation
Whirlpool Corporation is the world's leading global manufacturer and marketer
of major home appliances, with annual sales of approximately $19 billion in
2013, 69,000 employees and 59 manufacturing and technology research centers
around the world. The company marketsWhirlpool, Maytag, KitchenAid, Jenn-Air,
Amana, Brastemp, Consul, Bauknechtand other major brand names.Additional
information about the company can be found athttp://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) intense competition
in the home appliance industry reflecting the impact of both new and
established global competitors, including Asian and European manufacturers;
(2) Whirlpool's ability to continue its relationship with significant trade
customers and the ability of these trade customers to maintain or increase
market share; (3) acquisition and investment-related risk, including risks
associated with our pending acquisitions of Hefei Sanyo and Indesit; (4)
changes in economic conditions which affect demand for our products, including
the strength of the building industry and the level of interest rates; (5)
product liability and product recall costs; (6) inventory and other asset
risk; (7) risks related to our international operations, including changes in
foreign regulations, regulatory compliance and disruptions arising from
natural disasters or terrorist attacks; (8) the uncertain global economy; (9)
the ability of Whirlpool to achieve its business plans, productivity
improvements, cost control, price increases, leveraging of its global
operating platform, and acceleration of the rate of innovation; (10)
Whirlpool's ability to maintain its reputation and brand image; (11)
fluctuations in the cost of key materials (including steel, plastic, resins,
copper and aluminum) and components and the ability of Whirlpool to offset
cost increases; (12) litigation, tax, and legal compliance risk and costs,
especially costs which may be materially different from the amount we expect
to incur or have accrued for; (13) the effects and costs of governmental
investigations or related actions by third parties; (14) Whirlpool's ability
to obtain and protect intellectual property rights; (15) the ability of
suppliers of critical parts, components and manufacturing equipment to deliver
sufficient quantities to Whirlpool in a timely and cost-effective manner; (16)
health care cost trends, regulatory changes and variations between results and
estimates that could increase future funding obligations for pension and
postretirement benefit plans; (17) information technology system failures and
data security breaches; (18) the impact of labor relations; (19) our ability
to attract, develop and retain executives and other qualified employees; (20)
changes in the legal and regulatory environment including environmental and
health and safety regulations; and (21) the ability of Whirlpool to manage
foreign currency fluctuations.

Additional information concerning these and other factors can be found in
Whirlpool'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.

WHIRLPOOL CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
FOR THE PERIODS ENDED JUNE 30
(Millions of dollars, except share data)
                                      Three Months Ended  Six Months Ended
                                      2014       2013     2014     2013
Net sales                             $  4,682   $ 4,748  $ 9,045  $ 8,996
Expenses
Cost of products sold                 3,895      3,931    7,503    7,453
Gross margin                          787        817      1,542    1,543
Selling, general and administrative   457        453      896      874
Intangible amortization               5          5        11       14
Restructuring costs                   34         31       63       73
Operating profit                      291        328      572      582
Other income (expense)
Interest and sundry income (expense)  (16)       (39)     (39)     (57)
Interest expense                      (40)       (44)     (84)     (90)
Earnings before income taxes          235        245      449      435
Income tax expense (benefit)          50         39       100      (28)
Net earnings                          185        206      349      463
Less: Net earnings available to       6          8        10       13
noncontrolling interests
Net earnings available to Whirlpool   $  179     $ 198    $ 339    $ 450
Per share of common stock
Basic net earnings available to       $  2.29    $ 2.48   $ 4.34   $ 5.66
Whirlpool
Diluted net earnings available to     $  2.25    $ 2.44   $ 4.27   $ 5.56
Whirlpool
Dividends declared                    $  0.75    $ 0.625  $ 1.375  $ 1.125
Weighted-average shares outstanding
(in millions)
Basic                                 78.3       79.8     78.2     79.5
Diluted                               79.6       81.1     79.6     81.0
Comprehensive income                  $  184     $ 115    $ 390    $ 341





WHIRLPOOL CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(Millions of dollars, except share data)
                                                     (Unaudited)
                                                     June 30,     December 31,
                                                     2014        2013
Assets
Current assets
Cash and equivalents                                 $   945      $   1,380
Accounts receivable, net of allowance of $77 and     2,222        2,005
$73, respectively
Inventories                                          2,812        2,408
Deferred income taxes                                335          549
Prepaid and other current assets                     731          680
Total current assets                                 7,045        7,022
Property, net of accumulated depreciation of $6,425  3,069        3,041
and $6,278, respectively
Goodwill                                             1,723        1,724
Other intangibles, net of accumulated amortization   1,692        1,702
of $249 and $237, respectively
Deferred income taxes                                1,758        1,764
Other noncurrent assets                              321          291
Total assets                                         $   15,608   $   15,544
Liabilities and stockholders' equity
Current liabilities
Accounts payable                                     $   3,876    $   3,865
Accrued expenses                                     667          710
Accrued advertising and promotions                   353          441
Employee compensation                                357          456
Notes payable                                        3            10
Current maturities of long-term debt                 312          607
Other current liabilities                            550          705
Total current liabilities                            6,118        6,794
Noncurrent liabilities
Long-term debt                                       2,461        1,846
Pension benefits                                     868          930
Postretirement benefits                              468          458
Other noncurrent liabilities                         342          482
Total noncurrent liabilities                         4,139        3,716
Stockholders' equity
Common stock, $1 par value, 250million shares
authorized, 110 million and 109 million shares       110          109
issued, and 78 million and 77 million shares
outstanding, respectively
Additional paid-in capital                           2,497        2,453
Retained earnings                                    6,015        5,784
Accumulated other comprehensive loss                 (1,258)      (1,298)
Treasury stock, 32 million shares                    (2,124)      (2,124)
Total Whirlpool stockholders' equity                 5,240        4,924
Noncontrolling interests                             111          110
Total stockholders' equity                           5,351        5,034
Total liabilities and stockholders' equity           $   15,608   $   15,544





WHIRLPOOL CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE PERIODS ENDED JUNE 30
(Millions of dollars)
                                                              Six Months Ended
                                                              2014      2013
Operating activities
Net earnings                                                  $  349    $  463
Adjustments to reconcile net earnings to cash used in
operating activities:
Depreciation and amortization                                 261       255
Changes in assets and liabilities:
Accounts receivable                                           (215)     (274)
Inventories                                                   (375)     (199)
Accounts payable                                              (41)      19
Accrued advertising and promotions                            (88)      (55)
Taxes deferred and payable, net                               16        (110)
Accrued pension and postretirement benefits                   (69)      (89)
Employee compensation                                         (84)      (106)
Other                                                         (122)     (100)
Cash used in operating activities                             (368)     (196)
Investing activities
Capital expenditures                                          (265)     (180)
Proceeds from sale of assets                                  11        3
Investment in related businesses                              (36)      —
Other                                                         —         (38)
Cash used in investing activities                             (290)     (215)
Financing activities
Proceeds from borrowings of long-term debt                    818       499
Repayments of long-term debt                                  (504)     (505)
Dividends paid                                                (107)     (89)
Net repayments of short-term borrowings                       (6)       1
Common stock issued                                           28        63
Purchase of treasury stock                                    —         (30)
Purchase of noncontrolling interest shares                    (5)       —
Other                                                         (9)       (8)
Cash provided by (used in) financing activities               215       (69)
Effect of exchange rate changes on cash and equivalents       8         (18)
Decrease in cash and equivalents                              (435)     (498)
Cash and equivalents at beginning of period                   1,380     1,168
Cash and equivalents at end of period                         $  945    $  670





SUPPLEMENTAL INFORMATION - CONSOLIDATED FINANCIAL STATEMENTS
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Millions of dollars except per share data)
(Unaudited)

We supplement the reporting of our financial information determined under U.S.
generally accepted accounting principles (GAAP) with certain non-GAAP
financial measures, some of which we refer to as "ongoing business" measures,
including ongoing business operating profit, ongoing business operating
margin, ongoing business earnings (loss) before income taxes, ongoing business
earnings per diluted share, ongoing business segment operating profit, ongoing
business segment operating margin, sales excluding foreign currency and
BEFIEX, and free cash flow. Ongoing business measures exclude items that may
not be indicative of, or are unrelated to, results from our ongoing business
operations and provide a better baseline for analyzing trends in our
underlying businesses. Sales excluding foreign currency and BEFIEX is
calculated by translating the current period net sales excluding BEFIEX, in
functional currency, to U.S. dollars using the prior-year period's exchange
rate compared to the prior-year period net sales excluding BEFIEX. Management
believes that sales excluding foreign currency and BEFIEX provides
stockholders with a clearer basis to assess our results over time. Management
believes that free cash flow provides investors and stockholders with a
relevant measure of liquidity and a useful basis for assessing the company's
ability to fund its activities and obligations. We believe that these non-GAAP
measures provide meaningful information to assist investors and stockholders
in understanding our financial results and assessing our prospects for future
performance. Because non-GAAP financial measures are not standardized, it may
not be possible to compare these financial measures with other companies'
non-GAAP financial measures having the same or similar names. These ongoing
business financial measures should not be considered in isolation or as a
substitute for reported operating profit, earnings (loss) before income taxes,
net earnings per diluted share available to Whirlpool, reported operating
profit by segment, net sales, and cash provided by (used in) operating
activities, the most directly comparable GAAP financial measures. These
non-GAAP financial measures reflect an additional way of viewing aspects of
our operations that, when viewed with our GAAP results and the following
reconciliations to corresponding GAAP financial measures, provide a more
complete understanding of our business. We strongly encourage investors and
stockholders to review our financial statements and publicly-filed reports in
their entirety and not to rely on any single financial measure.



Ongoing Business Operating Profit, Ongoing Business Earnings Before Income
Taxes and Ongoing Business Earnings Per Diluted Share

The reconciliation provided below reconciles the non-GAAP financial measures
ongoing business operating profit, ongoing business earnings before income
taxes and ongoing business earnings per diluted share, with the most directly
comparable GAAP financial measures, operating profit, earnings before income
taxes and net earnings per diluted share available to Whirlpool, for the three
months ended June30, 2014. Ongoing business operating margin is calculated by
dividing ongoing business operating profit by net sales.

                                   Three Months Ended
                                   June 30, 2014
                                   Operating  Earnings       Earnings per
                                   Profit     Before Income  Diluted Share
                                              Taxes
Reported GAAP Measure              $   291    $     235      $     2.25
Restructuring Expense^(a)          34         34             0.33
Investment Expense^(b)             5          13             0.12
Antitrust Resolutions^(c)          —          1              0.01
Normalized Tax Rate Adjustment^(d) —          —              (0.09)
Ongoing Business Measure           $   330    $     283      $     2.62



Ongoing Business Operating Profit, Ongoing Business Earnings Before Income
Taxes and Ongoing Business Earnings Per Diluted Share

The reconciliation provided below reconciles the non-GAAP financial measures
ongoing business operating profit, ongoing business earnings before income
taxes and ongoing business earnings per diluted share, with the most directly
comparable GAAP financial measures, operating profit, earnings before income
taxes and net earnings per diluted share available to Whirlpool, for the three
months ended June30, 2013. Ongoing business operating margin is calculated by
dividing ongoing business operating profit by net sales excluding BEFIEX.

                                    Three Months Ended
                                    June 30, 2013
                                    Operating  Earnings      Earnings per
                                    Profit     Before Income  Diluted Share
                                               Taxes
Reported GAAP Measure               $   328    $     245      $     2.44
Restructuring Expense^(a)           31         31             0.29
Brazilian (BEFIEX) Tax Credits^(e)  (24)       (24)           (0.29)
Investment Expense^(b)              —          10             0.10
Antitrust and Contract              —          2              0.01
Resolutions^(c)
U.S. Energy Tax Credits^(f)         —          —              (0.20)
Normalized Tax Rate Adjustment^(d)  —          —              0.02
Ongoing Business Measure            $   335    $     264      $     2.37



Ongoing Business Segment Operating Profit

The reconciliation provided below reconciles the non-GAAP financial measure
ongoing business segment operating profit with the most directly comparable
GAAP financial measure, segment operating profit, for the three months ended
June30, 2014. Ongoing business segment operating margin is calculated by
dividing ongoing business segment operating profit by segment net sales.

                          Three Months Ended
                          June 30, 2014
                                                                 Ongoing
                          Segment    Restructuring  Investment   Business
                          Operating  Expense^(a)    Expense^(b)  Segment
                          Profit                                 Operating
                                                                 Profit
North America             $   285    $      —       $     —      $   285
Latin America             87         —              —            87
EMEA                      2          —              —            2
Asia                      4          —              —            4
Other/Eliminations        (87)       34             5            (48)
Total Whirlpool           $   291    $      34      $     5      $   330
Corporation

The reconciliation provided below reconciles the non-GAAP financial measure
ongoing business segment operating profit (loss) with the most directly
comparable GAAP financial measure, reported segment operating profit (loss),
for the three months ended June30, 2013. Ongoing business segment operating
margin is calculated by dividing ongoing business segment operating profit by
segment net sales excluding BEFIEX.

                        Three Months Ended
                        June 30, 2013
                                                                 Ongoing
                        Segment                    Brazilian     Business
                        Operating   Restructuring  (BEFIEX) Tax  Segment
                        Profit      Expense^(a)    Credits^(b)   Operating
                        (Loss)                                   Profit
                                                                 (Loss)
North America           $    262    $      —       $    —        $   262
Latin America           135         —              (24)          111
EMEA                    (6)         —              —             (6)
Asia                    14          —              —             14
Other/Eliminations      (77)        31             —             (46)
Total Whirlpool         $    328    $      31      $    (24)     $   335
Corporation



Footnotes:
          During the second quarters of 2014 and 2013, we recorded
a.  restructuring charges of $34 million and $31 million, respectively.
          The earnings per diluted share impacts are calculated based on
          income tax impacts of $8 million and $7 million, respectively.
          During the second quarters of 2014 and 2013, we recognized
          investment expenses of $13 million and $10 million, respectively,
b.  primarily related to the pending acquisitions of majority interests
          in Hefei Sanyo and, specifically for 2014, Indesit. The earnings per
          diluted share impactsare calculated based on income tax impacts of
          $3 million and $2 million, respectively.
          During the second quarter of 2014, we recognized expenses of
          approximately $1 million related to antitrust resolutions. The
          earnings per diluted share impact is calculated based on an income
c.   tax impact of $0 million. During the second quarter of 2013 we
          recognized expenses of $2 million related to antitrust and contract
          resolutions. The earnings per diluted share impact is calculated
          based on an income tax impact of $0 million.
          During the second quarters of 2014 and 2013, we made adjustments to
d.     ongoing business diluted EPS to reconcile specific items reported to
          a full-year effective tax rate of 24%.
          During the second quarter of 2013, we monetized Brazilian (BEFIEX)
e.      tax credits of $24 million. The earnings per diluted share impact is
          calculated based on an income tax impact of $0 million.
          In the second quarter of 2013, we recognized $16 million of U.S.
f. energy tax credits. The earnings per diluted share impact is
          calculated based on an income tax benefit of $16 million.

Free Cash Flow

As defined by the company, free cash flow is cash provided by (used in)
operating activities after capital expenditures and proceeds from the sale of
assets and businesses. The reconciliation provided below reconciles six-month
actual 2014 and 2013 and projected full-year free cash flow with cash provided
by (used in) operating activities, the most directly comparable GAAP financial
measure.

                                          Six Months Ended
                                          June 30,
(millions of dollars)                     2014     2013      2014 Outlook
Cash Provided by (Used In) Operating      $ (368)  $ (196)   $ 1,225 – $ 1,325
Activities
Capital Expenditures and Proceeds from      (254)    (177)     (625) –   (675)
Sale of Assets/Businesses
Free Cash Flow                            $ (622)  $ (373)   $ 600   – $ 650



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SOURCE Whirlpool Corporation

Website: http://www.whirlpoolcorp.com
Contact: Whirlpool Corporation: Media: Whirlpool Corporation Press Office,
269/923-7405, Media@Whirlpool.com; or Financial: Christopher Conley,
269/923-2641, Investor_Relations@Whirlpool.com
 
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