Whirlpool Earnings Dip In Second Quarter

BENTON HARBOR — Whirlpool Corp. (NYSE: WHR) Wednesday reported net income of $177 million or $2.21 a share in the second quarter ended June 30, down from $179 million or $2.25 a share a year earlier.

The Benton Harbor-based company said sales for the quarter were a record $5.21 billion, up from $4.68 billion a year earlier.

The company also reported an “ongoing businses earnings” figure that excluded restructuring expenses, acquisition costs, and gains and losses on pension settlements, business investments and other one-time events. That figure was $2.70 a share, up from $2.62 a share in the prior year period, which Whirlpool said was a record.

The company said overall, improvements in cost controls, sales of more high-margin products, and the benefits of acquisition integration offset problems caused by unfavorable currency trends and weaker demand in Brazil. Excluding the impact of foreign currency, sales increased over 25 percent, primarily driven by the acquisitions.

“Whirlpool delivered strong financial results in the second quarter,” said Jeff M. Fettig, Whirlpool chairman and CEO. “These record results reflect the strength of our expanded global platform and we have the actions in place to deliver record second-half performance.”

Whirlpool increased its full-year 2015 earnings guidance to reflect a gain related to a business investment in Latin America. The company now expects full-year et earnings per diluted share available to Whirlpool of $9.50 to $10.50, up from previous guidance of $9 to $10. The company also said it expects to generate free cash flow of $700 million in 2015. Included in this guidance are restructuring cash outlays of up to $250 million, capital spending of approximately $750 million to $800 million and U.S. pension contributions of approximately $72 million.

Whirlpool North America reported second-quarter net sales of $2.7 billion, up slightly from the same prior-year period. Excluding the impact of currency, sales increased over 1 percent. The region reported a second-quarter operating profit of $287 million, compared to $285 million in the same prior-year period. The company expects full-year 2015 industry unit shipments to increase by approximately 4 percent.

Whirlpool Europe, Middle East and Africa reported second-quarter net sales of $1.3 billion, compared to $700 million in the same prior-year period, an increase of 79 percent. Excluding the impact of currency, sales increased over 127 percent. The region reported second-quarter operating profit of $51 million, compared to $2 million in the same prior-year period.

Whirlpool Latin America reported second-quarter net sales of $900 million, compared to $1.1 billion in the same prior-year period. Excluding the impact of currency, sales increased by 1 percent. The region reported second-quarter GAAP operating profit of $36 million, or 4.2 percent of sales, compared to $87 million, or 8.0 percent of sales, in the same prior-year period.

Whirlpool Asia reported second-quarter net sales of $381 million, compared to $211 million in the same prior-year period, an increase of 81 percent. Excluding the impact of currency, sales increased over 85 percent. The region reported a second-quarter GAAP operating profit of $27 million, compared to an operating profit of $4 million in the same prior-year period.

Whirlpool is the world’s No. 1 major appliance manufacturer, with about $20 billion in annual sales, 100,000 employees and 70 manufacturing and technology research centers throughout the world in 2014. The company markets Whirlpool, KitchenAid, Maytag, Consul, Brastemp, Amana, Bauknecht, Jenn-Air, Indesit and other major brand names in more than 170 countries.

More at www.whirlpoolcorp.com.

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.