Whirlpool North America shipments of major appliances declined approximately 8 percent.

Whirlpool Corporation (NYSE:WHR) announced today that second-quarter earnings from continuing operations of $117 million decreased 27 percent to $1.53 per diluted share. Revenue of $5.1 billion for the quarter increased 5 percent from the $4.9 billion reported in the second quarter of 2007.

"Whirlpool made solid progress toward improving operating results from first-quarter levels despite an increasingly challenging economic environment," said Jeff M. Fettig, chairman and chief executive officer of Whirlpool Corporation. "The cost inflation facing our business is significant, and we continue to take steps to address this challenge."

Whirlpool recently announced two plant closings (see story).

Net earnings for the quarter reflected challenging macroeconomic conditions in the company's U.S. business, as industry unit demand declined approximately 8 percent compared to the prior year. Operating profit totaled $203 million compared with $247 million in the prior year. Second-quarter operating results were unfavorably impacted by significantly higher material and oil-related costs, lower U.S. industry unit volume, and an increase in restructuring costs. These unfavorable impacts were partially offset by productivity initiatives and improved results within the company's Latin American operations.

Whirlpool North America second-quarter sales of $2.9 billion declined 4 percent from the prior year. U.S. industry unit shipments of major appliances declined approximately 8 percent.

Operating profit of $101 million declined from $179 million reported in the previous year. Significantly higher material and oil-related costs, lower industry demand and increased selling, general and administrative expense due primarily to increased brand investment were the primary factors affecting the company's second-quarter operating profit. These factors were partially offset by improved productivity and favorable product price/mix.

Based on current economic conditions, the company expects full-year 2008 U.S. industry unit shipments to decline approximately 6 percent to 7 percent from 2007 levels versus the 5 percent to 6 percent decline previously expected.

Whirlpool Europe reported second-quarter sales of $1.1 billion, a 17 percent increase from the prior year. Excluding the effects of currency, sales increased 2 percent in the quarter. Overall industry demand during the quarter declined approximately 2 percent from the prior year.

Operating profit decreased 1 percent to $50 million. Operating profit was unfavorably impacted by higher material and oil-related costs. These increased costs were partially offset by improved product price/mix and productivity improvements during the quarter.

Based on current economic conditions in the European region, the company continues to expect full-year 2008 industry unit shipments to decline 2 percent to 3 percent from 2007 levels.

Whirlpool Latin America net sales increased 22 percent to $1.0 billion. Latin America sales results reflect strong demand for the company's innovative products in the region. Excluding currency translation, sales for appliances and compressors increased approximately 7 percent.

Operating profit totaled $133 million in the second quarter, increasing 40 percent from the prior year. Increased unit shipments, regional tax incentives and strong productivity and cost controls were the main factors behind the year-over-year increase.

Based on current economic conditions in Latin America, the company continues to expect full-year 2008 industry unit shipments to rise 5 percent to 8 percent from 2007 levels.

Whirlpool Asia reported second quarter sales of $178 million, increasing 9 percent from the prior year. Excluding the impact of currency, sales increased approximately 8 percent predominantly due to higher volume in the company's India operations.

The region reported an operating profit of $5 million during the quarter compared with $2 million in the previous year. The year-over-year increase in operating profit resulted from higher volume and favorable trends in productivity and product price/mix. These favorable items were partially offset by higher material costs.

The company continues to expect full-year 2008 industry unit shipments to increase 5 percent to 10 percent from 2007 levels.

"The challenges resulting from significant global commodity inflation have persisted and, in many instances, accelerated," said Fettig. "We continue to execute previously announced cost-based price increases and cost reduction actions related to our global operating platform initiatives. These actions, coupled with other productivity initiatives and bringing innovative new products to the marketplace, are critical to our ability to offset the record commodity and oil-related costs and lower industry demand."