Whirlpool 2009 Annual Report Download - page 93

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RE SULT S OF O P E R ATIO N S
For the year ended December 31, 2009, consolidated net sales were $17 billion. Consolidated net earnings
available to Whirlpool common stockholders were $328 million, or $4.34 per diluted share, decreasing
from $418 million or $5.50 per diluted share for the year ended December 31, 2008. The decrease in net
sales and earnings reflects lower appliance industry demand resulting primarily from weaker economies
within our North America and Europe regions and the unfavorable impact of foreign currency.
Net Sales
Consolidated net sales decreased 9.6% compared to 2008 primarily due to lower unit shipments and the
impact of unfavorable foreign currency. Excluding the impact of foreign currency, consolidated net sales
decreased 5.8% compared to 2008. Consolidated net sales for 2008 decreased 2.6% compared to 2007
primarily due to lower unit shipments, which were partially offset by the favorable impact of foreign cur-
rency. Excluding the impact of foreign currency, consolidated net sales decreased 5.1% compared to 2007.
Significant regional trends were as follows:
• North America net sales decreased in 2009 by 11.0% compared to 2008 primarily due to a 9.5% decrease
in units sold. The decline in units sold is due to decreased industry demand resulting from continued
weak economies in the U.S., Mexico and Canada in 2009. Additionally, net sales were negatively impacted
by the unfavorable impact of foreign currency, which was partially offset by improved product price/mix.
Excluding the impact of foreign currency, North America net sales decreased 9.4% in 2009. North
America net sales decreased in 2008 by 8.1% compared to 2007 primarily due to a 10.4% decrease in
units sold. The decline in units sold is primarily due to decreased industry demand resulting from a weak
U.S. economy in 2008. Partially offsetting the decrease in units sold was better product price/mix and
higher market share in 2008 compared to 2007. Excluding the impact of foreign currency, North America
net sales decreased 8.2% in 2008.
• Europe net sales decreased in 2009 by 16.9% compared to 2008, primarily due to an 11.7% decrease in
units sold due to lower appliance industry demand and the unfavorable impact of foreign currency.
Excluding the impact of foreign currency, Europe net sales decreased 11.2% in 2009. Net sales increased
in 2008 by 4.4% compared to 2007, primarily due to favorable foreign currency and better product price/
mix, partially offset by a decrease in unit volume due to lower market demand in the second half of the
year. Excluding the impact of foreign currency, Europe net sales decreased 3.1% in 2008.
• Latin America net sales were consistent in 2009 compared to 2008 as the unfavorable impact of foreign
currency and lower BEFIEX credits recognized were fully offset by a 14.5% increase in units sold. The
increase in units sold was a result of favorable economic conditions and the Impostos sobre Produtos
(“IPI”) sales tax holiday in Brazil. The IPI sales tax holiday was the primary driver of the reduction of
BEFIEX credits monetized. This sales tax holiday was declared by the Brazilian government on certain
appliances in our Latin America region beginning in the second quarter and extended through the
remainder of 2009. During this holiday, we monetized reduced amounts of BEFIEX credits because our
BEFIEX credits are monetized through the offset of IPI taxes due. The IPI sales tax holiday expired
January 31, 2010. Excluding the impact of foreign currency, Latin America net sales increased 7.1% in
2009. Net sales increased 7.8% in 2008 as compared to 2007, primarily due to an increase in volume of
5.7% and the favorable impact of foreign currency. The increase in volume was due to continued growth
in the appliance industry, increased market share and favorable economic conditions throughout the
region. Excluding the impact of foreign currency, Latin America net sales increased 1.7% in 2008.
During the years ended December 31, 2009, 2008 and 2007, we monetized $69 million, $168 million
and $131 million of BEFIEX credits, respectively. We expect to continue recognizing credits as they are
monetized. As of December 31, 2009, $693 million of these export credits remain. Future actions by the
Brazilian government could limit our ability to monetize these export credits.
• Asia net sales increased 10.3% in 2009 compared to 2008 primarily due to a 20.8% increase in units sold
offset partially by the impact of unfavorable foreign currency. Excluding the impact of foreign currency,
Asia net sales increased 18.4% in 2009. Net sales increased 6.5% in 2008 compared to 2007 primarily due
to a 5.7% increase in units sold. The increase in volume was due to continued growth in the appliance
industry, primarily in India. Excluding the impact of foreign currency, Asia net sales increased 9.7%
in 2008.
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