Whirlpool 2002 Annual Report Download - page 17

Download and view the complete annual report

Please find page 17 of the 2002 Whirlpool annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 41

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41

2002 Annual Report 31
Management’s Discussion and Analysis
RESULTS OF OPERATIONS
The consolidated statements of operations summarize operating results for the last three years. This section of
Management’s Discussion and Analysis highlights the main factors affecting changes in operating results during the
three-year period.
EARNINGS
Earnings from continuing operations were $262 million in 2002 versus $34 million and $367 million in 2001 and 2000.
The significant increase in 2002 relates primarily to the $181 million in after-tax product recall charges recorded in
2001, slightly lower restructuring expenses in 2002 and improved operating performance over 2001. The significant
decrease in 2001 versus 2000 is due to the product recall and restructuring expenses recognized in 2001. Charges
relating to the cumulative effect of changes in accounting principle and discontinued operations are excluded from
earnings from continuing operations but included in net earnings (loss).
Millions of dollars, except per share data 2002 2001 2000
Earnings from continuing operations $ 262 $ 34 $ 367
Diluted earnings per share from continuing operations 3.78 0.50 5.20
Net earnings (loss) (394) 21 367
Diluted net earnings (loss) per share (5.68) 0.31 5.20
Core earnings from operations 420 371 367
Diluted core earnings per share 6.07 5.45 5.20
Whirlpool provides core earnings analysis as a view of the underlying strength of our operations. The term “core earnings”
refers to net earnings excluding the cumulative effects of the adoption of new accounting standards, discontinued
operations, restructuring and related charges, write-off of asset impairments, and product recall related charges.
Core earnings improved for 2002 due to a strong performance in our North American operations, which achieved
strong growth in both sales and earnings, along with a significant improvement in earnings in our European operations
and the benefits of our restructuring and ongoing productivity efforts. These combined to offset the effects of economic
and political instability in Latin American markets accompanied by severe currency fluctuations for the region.
Financial Contents
30
Financial Contents
Management’s Discussion and Analysis
Consolidated Statements of Operations
Consolidated Balance Sheets
Consolidated Statements of Cash Flows
Consolidated Statements of Changes in Stockholders’ Equity
Notes to Consolidated Financial Statements
Reports of Independent Auditors and Management
Eleven-Year Consolidated Statistical Review
Shareholders’ and Other Information
Directors & Executive Committee
Senior Officers & Company Addresses
31
41
42
44
45
46
70
72
74
75
76