whirlpool

Business
8:41 pm
Sun December 22, 2013

Michigan-based Whirlpool moves manufacturing jobs from Mexico to Ohio

Spotrebice Whirlpool Creative Commons

Whirlpool is a giant in the appliance world with annual sales around $18 billion.

The Benton Harbor based company says it’s moving production of its commercial front-load washing machines from Mexico to a plant in northwest Ohio this spring. All of Whirlpool’s residential washing machines are already built there. At nearly two and a half million square feet, Whirlpool claims the plant is the biggest washing machine plant in the world.

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Business
4:38 pm
Mon August 6, 2012

Whirlpool to close Indiana refrigerator center, consolidate in Michigan

Whirlpool Corp. is planning to shut down the last of its operations in a southern Indiana city where it had more than 1,500 workers a few years ago by moving refrigerator development work to Michigan.

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Economy
1:19 pm
Fri May 25, 2012

Poorest city in Michigan hosts Senior PGA Championship

Protestors gather in front of Benton Harbor city hall before a silent march.
Lindsey Smith Michigan Radio

The Senior PGA Championship is underway today in Benton Harbor.

The city is home to the Whirlpool Corporation, the largest appliance manufacturer in the world; and it's also the poorest city in Michigan. In 2010 the average household in Benton Harbor earned just $17,000 a year.

Whirlpool's plan to turn Benton Harbor into a tourist destination

Recently, a steady stream of tour busses and a fleet of silver Mercedes with the PGA logo cruised through town.

At times you could see people inside the cars point at boarded up buildings as they drove by.

The Harbor Shores golf course sits in sharp contrast to the city’s poverty. But near the golf course there are plans for condos, two luxury hotels (to be completed by 2014), and a marina.

Whirlpool executives came up with this concept in the 1980s. They wanted to turn more than three million square feet of old manufacturing space near the Lake Michigan shore into a destination for golfers.

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Economy
12:45 pm
Fri October 28, 2011

Whirlpool to cut 5,000 jobs to reduce costs

Whirlpool

Update 12:45 p.m.

Jeff Noel, a Whirlpool company spokesman, would not give Michigan Radio reporter Lindsey Smith a number. When pressed further about the job losses expected in Michigan, Noel said it would be “a commensurate amount."

10:06 a.m.

In a cost cutting measure, the Benton Harbor-based company Whirlpool says it will cut 5,000 jobs. There's no word yet on how many of those job cuts will be in Michigan.

Michigan Radio's Lindsey Smith is following the story and will have more for us later.

From the Associated Press:

Appliance maker Whirlpool Corp. says it will cut 5,000 jobs in an effort as it faces soft demand and higher costs for materials.

The jobs to be cut are mostly in North America and Europe. They include 1,200 salaried positions and the closing of the company's Fort Smith, Ark., plant.

The company expects the moves will save $400 million by the end of 2013.

Whirlpool also says its third-quarter net income more than doubled to $177 million, or $2.27 per share, from $79 million, or $1.02 per share. Adjusted earnings of $2.35 per share fell short of analyst expectations for $2.75 per share.

The company, whose brands include Maytag and KitchenAid, has been squeezed by higher costs for materials such as steel and copper.

Bloomberg News reports that Whirlpool employs 71,000 people around the world "at 66 manufacturing and research sites.":

Whirlpool follows European rival Electrolux AB (ELUXB) with a more muted outlook for the year. The Swedish company said today that it will deepen cost cuts after lowering a forecast for growth in Europe and North America this year. Whirlpool said reductions in Europe and North America account for about 10 percent of all employees in those regions. The company has a global workforce of 71,000 at 66 manufacturing and research sites.

Indictment
1:56 pm
Wed September 28, 2011

Three corporate executives indicted in compressor price-fixing case

A refrigerator compressor. The thing that makes your refrigerator cold. Three executives have been indicted by a Detroit federal grand jury on charges of conspiring to fix the price of compressors.
Dave Matos Flickr

The U.S. Department of Justice announced that a federal grand jury in Detroit has indicted three former executives from a Whirlpool Corporation subsidiary, a Panasonic Corporation, and a Tecumseh Products Company subsidiary for conspiring to fix prices on refrigerant compressors.

The compressors are used in refrigerators and freezers.

From the DOJ's press release:

The indictment, returned today in U.S. District Court in Detroit, charges Ernesto Heinzelmann, former president and chief executive officer of Empresa Brasileira de Compressores S.A. (Embraco), a division of Whirlpool S.A.; Gerson Veríssimo, former president of Tecumseh do Brasil Ltda., a subsidiary of Tecumseh Products Company; and Naoki Adachi, general manager of global sales & SE group, refrigeration devices division at Panasonic Corporation, with conspiring to suppress and eliminate competition by coordinating price increases for refrigerant compressors to customers in the United States and elsewhere.

Sharis A. Pozen, Acting Assistant Attorney General from the DOJ's Antitrust Division said:

“Cracking down on international price fixing cartels has been and will continue to be among the most significant priorities for the Antitrust Division. Our investigation into the refrigerant compressors industry has already resulted in two companies – Panasonic and Embraco North America – pleading guilty and paying a total of $140.9 million in criminal fines. Our investigation is continuing.”

The three are being charged for price fixing under the Sherman Act. The maximum penalty they each face is 10 years in prison and a $1 million fine.

The DOJ reports that their investigation led to guilty pleas in 2010 from Panasonic and Embraco North America Inc:

On Nov. 15, 2010, Panasonic Corporation pleaded guilty and was sentenced to pay a $49.1 million criminal fine, and on Dec.16, 2010, Embraco North America Inc. pleaded guilty and was sentenced to pay a $91.8 million criminal fine.

Economy
11:02 am
Thu July 21, 2011

Whirlpool reports second quarter loss

thewildinvestor.com

Whirlpool is reporting a loss in its second quarter. The company says the loss is the result of a legal settlement. The company announced in June that it would pay $603 million to Brazilian bank Banco Safra S.A. to settle the 20 year old dispute.

From the Associated Press:

Whirlpool Corp. is reporting a second-quarter loss largely due to the settlement of Brazilian collection dispute, but its adjusted results topped Wall Street's expectations.

But the world's biggest appliance company said Thursday that it now expects full-year earnings at the low end of its previously reported range and shares dipped 3 percent in premarket trading.

Whirlpool lost $161 million, or $2.10 per share in the past quarter. That compares with a profit of $205 million, or $2.64 per share, a year ago. Excluding the settlement and other items, adjusted earnings were $2.76 per share. Revenue climbed 4 percent to $4.73 billion from $4.53 billion. Analysts expected earnings of $2.73 per share on revenue of $4.74 billion.

Whirlpool, whose other brands include Maytag and Kitchenaid, is based in Benton Harbor. Mich.

Economy
8:39 am
Wed April 27, 2011

Whirlpool reports higher net income in the 1st quarter

2011 is off to a good start for Whirlpool.  The Benton Harbor appliance maker reported its net earnings rose in the first quarter.   Whirlpool reports its net earnings for the first three months of 2011 clocked in at $169 million, up from $164 million in the first quarter of 2010.  Total sales increased 3% to $4.4 billion.  

First-quarter operating profit totaled $228 million compared with $241 million in the prior year.  On an adjusted basis, first quarter 2011 operating profit(2) totaled $221 million compared to $287 million in 2010.  Results were favorably impacted by cost reduction and productivity initiatives, increased monetization of certain tax credits, and higher unit volume.  These favorable factors were offset by lower product price/mix and higher material and oil-related costs. 

Jeff Fettig is Whirlpool's CEO.  

"Our first quarter results reflect our ongoing cost reduction efforts and continued innovation investments, which helped to mitigate significant material cost inflation....We recently announced a 16% dividend increase, reflective of the success of our brand value creation strategy and our strong financial position.  We remain committed to attracting and retaining consumers to our brands, providing excellent service and value to our trade customers and consumers while driving lower costs and higher quality across our global operations."  

Economy
9:18 am
Mon April 4, 2011

Whirlpool accuses rivals of dumping

Whirlpool is accusing two rival appliance makers of dumping refrigerators on the U.S. market. Benton Harbor-based Whirlpool named Samsung Electronics and LG Electronics in an anti-dumping petition filed with the U.S. Commerce Department last week. 

Whirlpool accuses the companies of selling refrigerators below cost in the U.S. 

Kenneth Zener is a financial analyst with Key Bank.  

“Whirlpool is the largest appliance manufacturer worldwide. I think they have a good understanding of what it costs to make an appliance.  And they are asserting that it is upwards of 30% below the construction price for the items identified in the petition."

The Commerce Department is not expected to rule on whirlpool’s petition until next year.   

If Whirlpool wins its case, the federal government could impose higher import duties on the dumped refrigerators.

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Business
3:40 pm
Wed March 9, 2011

Whirlpool CEO: US is the place to invest

Whirlpool CEO Jeff Fettig
whirlpoolcorp.com

The head of Michigan-based Whirlpool says the United States is a smart place for the appliance giant to invest.

The company announced last year that it planned to sink $1 billion into its United States operations over the next four years. CEO Jeff Fettig says since then, he’s fielded lots of questions about why and how the company planned to do that.

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