BENTON HARBOR — Whirlpool Corp. (NYSE: WHR), the world’s largest appliance maker, reported net income of $235 million or $2.95 a share in the third quarter ended Sept. 30, up from $230 million or $2.88 a share a year earlier.
Revenue in the quarter was $5.28 billion, up from $4.82 billion a year earlier. That’s an increase of 9 percent. Exluding the impact of a strong U.S. dollar on international sales, revenue rose nearly 25 percent.
The company also released an “ongoing business earnings” figure of $3.45 a share, up from $3.04 a share a year earlier. This figure exludes restructuring expense, acquisition costs, gains related to business investments, legacy warranty and liability expenses, and benefit plan curtailment gains.
Said Whirlpool chairman and CEO Jeff M. Fettig: “Our operating plans and focused execution delivered another quarter of record revenues, operating profit and earnings in spite of a challenging operating environment in several key emerging markets.”
The company said the benefits from acquisition integration activities, cost and capacity-reduction initiatives, ongoing cost productivity and favorable price-mix more than offset unfavorable currency, declining emerging market demand and increased investments in marketing, technology and products.
Whirlpool also changed its 2015 guidance to reflect continued weakness in emerging market demand and negative currency impacts. As a result of these changes, along with the benefits of previously announced actions to improve margins, the company now expects to deliver earnings of $9.75 to $10.25 a share. The previous range was $9.50 to $10.50 a share.
For the nine months, net income was $603 million or $7.54 a share, up from $569 million or $7.16 a share in the first nine months of 2014. Revenue was $15.33 billion, up from $13.87 billion a year earlier.
Whirlpool North America reported third-quarter net sales of $2.8 billion, unchanged from the same prior-year period. Excluding the impact of currency, sales increased nearly 3 percent. The region reported a third-quarter operating profit of $349 million, compared to $304 million in the same prior-year period. Ongoing cost productivity and favorable raw materials more than offset unfavorable currency and increased investments in marketing, technology and products.
Whirlpool Europe, Middle East and Africa reported third-quarter net sales of $1.5 billion, compared to $800 million in the same prior-year period, an increase of 85 percent. Excluding the impact of currency, sales increased over 127 percent. The region reported third-quarter operating profit of $32 million, compared to $9 million in the same prior-year period.
Whirlpool Latin America reported third-quarter net sales of $800 million, compared to $1.1 billion in the same prior-year period. Excluding the impact of currency, sales decreased by 7 percent. The region reported third-quarter GAAP operating profit of $31 million, or 4.2 percent of sales, compared to $118 million, or 10.4 percent of sales, in the same prior-year period. Improved product price/mix and the benefit of cost and capacity reductions were more than offset by unfavorable currency and lower unit volumes due to a weaker demand environment in Brazil.
Whirlpool Asia reported third-quarter net sales of $346 million, compared to $157 million in the same prior-year period, an increase of 120 percent. Excluding the impact of currency, sales increased over 127 percent. The region reported a third-quarter operating profit of $24 million, compared to an operating loss of $8 million in the same prior-year period.
More at www.whirlpoolcorp.com.