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Whirlpool stock dips after plant closings

by ashley wiehle, the southern

Saturday, May 13, 2006 6:00 AM CDT

HERRIN - Days after a highly publicized termination of 4,500 employees nationwide, Whirlpool stocks have nudged slightly downward.

Stocks in Whirlpool had dropped by 2.47 percent at the close of Friday, according to the New York Stock Exchange.

Whirlpool purchased rival Maytag in December, but the sale was not official until March. On Wednesday, Whirlpool announced it was closing three of its Maytag plants, including a 1,000-employee factory in Herrin.

Whirlpool stocks were worth $91.03 on Thursday evening, but closed the week at a price of $88.78.

Chuck Kain, a stockbroker for Edward Jones in West Frankfort, said it's not unusual for a company to experience some fluctuations in its stock prices after a major event such as a merger.

"It's not atypical," Kain said. "A lot of times when a company is buying another company, you'll see the stock raise for the company that is being bought and the stock drop for the company that is doing the buying."

Although Edward Jones does not handle Whirlpool stocks, Kain said he has already received a lot of inquiries from Maytag workers who will find themselves out of work on Dec. 31.

It's important that these employees receive the correct information from financial advisers to know how to best protect the benefits they have accrued while in the employ of Maytag, Kain said.

"We can help these people sort out their pension options and their 401(k) rollover options, because there are important decisions they should make," Kain said. "That's one of the primary options they have, and we can help people sort out what options are to their best advantage."

While many employees have begun to absorb the information and begin looking at their financial future, gubernatorial candidates have turned the recent closure into a sparring match.

Republican candidate Judy Baar Topinka said the closure of the Herrin Maytag facility was a result of Gov. Rod Blagojevich not doing enough to make Illinois a business-friendly state.

"The people of Illinois and the people of Herrin deserve better," Topinka said in a release. "Under a Topinka administration, we will make Illinois a place that businesses want to create and expand jobs again."

Blagojevich said Wednesday that he and the Department of Commerce and Economic Opportunity would take all necessary steps to persuade Whirlpool executives to reconsider the Herrin plant closure.

"People in Southern Illinois have come to rely on Maytag as one of its largest employers, and we owe it to them to do everything we can to keep the plant, which is one of its most efficient facilities, open," Blagojevich said.

- Kurt Erickson contributed to this story.

ashley.wiehle@thesouthern.com

(618) 997-3356 ext. 5807