Whirlpool Closing, Job Cuts To Cost $51M

NEW YORK (AP) -- Whirlpool Corp. will face $51 million in costs related to the closing of its refrigerator factory in Evansville, Ind., and 1,100 job cuts, according to a regulatory filing on Monday.

The appliance maker, which continues to look for ways to shed excess capacity, said Friday that it would move the production of refrigerators with freezers on top to a company location in Mexico, where they are cheaper to produce. Ice makers produced in Evansville will be moved to a yet-to-be-decided location.

Whirlpool has sharply reduced costs as demand for its big-ticket items has waned during the recession. It plans to eliminate the jobs by mid-2010.

The Benton Harbor, Mich.-based company said in a filing with the Securities and Exchange Commission that it will incur about $21 million in employee termination costs, $13 million in equipment relocation costs, $5 million in asset impairment costs, and $12 million in other associated costs related to the factory's closing.

About $21 million of the costs will be recognized in fiscal 2009, with $27 million recognized in fiscal 2010 and $3 million in fiscal 2011.

Whirlpool's stock shed $1.23 to $64.88 in midday trading.

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