Whirlpool Corporation Announces First Phase Global Restructuring Actions.Business Editors BENTON HARBOR Benton Harbor, city (1990 pop. 12,818), Berrien co., SW Mich., on Lake Michigan at the mouth of the St. Joseph River opposite St. Joseph; inc. 1869. A long-time fruit industry, tourist, and industrial center, noted for appliance manufacturing, the city declined in , Mich.--(BUSINESS WIRE)--Jan. 31, 2001 Whirlpool Corporation Whirlpool Corporation (NYSE: WHR) is the world's leading manufacturer and marketer of major home appliances,with annual sales of approximately $18 billion, more than 73,000 employees, and more than 70 manufacturing and technology research centers around the world. (NYSE NYSE See: New York Stock Exchange :WHR WHR World Health Report WHR Waist-to-Hip Ratio WHR Welsh Highland Railway (UK) WHR Western Hemisphere Region WHR Watt Hour WHR Witch Hunter Robin (anime) WHR Waste Heat Recovery ) today announced the specific details of the first phase of its worldwide restructuring plan, which was discussed in its earnings release last week. The plan is designed to enhance Whirlpool's competitiveness and performance, as well as reinforce its capacity to invest in its brand building strategies. As previously announced, the first phase of the restructuring includes the elimination of more than 2,000 positions worldwide. In Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. , the company plans to close its refrigerator manufacturing facility in Sao Bernardo, Brazil, resulting in the elimination of about 1,000 positions. The company plans to consolidate production of refrigerators in Brazil at its Joinville, Brazil, manufacturing facility. In Europe, the company plans to optimize production capacity for component operations and use targeted reductions in force elsewhere in the region to reduce its headcount by about 250 positions. In Asia, about 400 positions will be eliminated through the sale of facilities and the outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. of non-core operations in both India and China. In North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , about 300 positions have been eliminated through voluntary retirement and targeted reductions in force. Another 100 positions will be eliminated, primarily through the outsourcing of Whirlpool's spare-parts packaging operations. As previously announced, the company expects that this phase of the restructuring will result in a first quarter charge of approximately $75 million and will produce savings of about $35 million in 2001, increasing to about $50 million on an annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. basis. The restructuring, which will be implemented in phases on a quarter-by-quarter basis, is expected to be completed within the next 12 to 18 months. In total, the restructuring plan is expected to result in pre-tax charges of between $300 million and $350 million and an annualized savings of between $225 million and $250 million. The plan is expected to eliminate up to 6,000 positions worldwide. Whirlpool Corporation is the world's leading manufacturer and marketer of major home appliances. Headquartered in Benton Harbor, the company manufactures in 13 countries and markets products under 11 major brand names in more than 170 countries. Additional information about the company can be found on the Internet at www.WhirlpoolCorp.com. |
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