Whirlpool Profits Inch Up

BENTON HARBOR —  Whirlpool Corp. (NYSE: WHR), the world’s largest appliance maker, announced third quarter net income of $238 million, or $3.10 a share, up from $235 million, or $2.95 a share, a year earlier.

Revenue was $5.25 billion, down from $5.27 billion a year earlier.

For the nine months ended Sept. 30, net income was $708 million or $9.16 a share, up from $603 million or $7.54 a year earlier. Revenue was $15.06 billion, down from $15.33 billion a year earlier.


“In a challenging external environment, we delivered record third-quarter ongoing earnings per share by leveraging our portfolio of leading brands, innovative new products and a continued focus on cost productivity,” said Whirlpool Chairman and CEO Jeff Fettig. “The fundamentals of our business are strong, and as a result of our operational execution we have delivered earnings per share growth of 18 percent year-to-date. We remain focused on creating value for our shareholders and returning cash through our share repurchase and dividend programs.”

The company also announced an “ongoing business operating profit” of $413 million, or 7.9 percent of sales, compared to $418 million, or 7.9 percent of sales, in the same prior-year period. The figure represents net income minus restructuring expenses, acquisition-related “transition costs,” legacy product warranty and liability expense, and income taxes.

Whirlpool North America reported third-quarter net sales of $2.9 billion, compared to $2.8 billion in the same prior-year period. Excluding the impact of currency, sales increased 3 percent. The region reported third-quarter GAAP operating profit of $346 million, or 12.1 percent of sales, compared to $349 million, or 12.5 percent of sales, in the same prior-year period.

Whirlpool Europe, Middle East and Africa reported third-quarter net sales of $1.3 billion, compared to $1.5 billion in the same prior-year period. Excluding the impact of currency, sales decreased by 6 percent. The region reported third-quarter GAAP operating profit of $40 million, or 3 percent of sales, compared to $32 million, or 2.2 percent of sales, in the same prior-year period.

Whirlpool Latin America reported third-quarter net sales of $800 million, compared to $751 million in the same prior-year period. Excluding the impact of currency, sales increased by 2 percent. The region reported third-quarter operating profit of $45 million, or 5.7 percent of sales, compared to $31 million, or 4.2 percent of sales, in the same prior-year period, driven by favorable product price/mix and benefits from cost and capacity reduction initiatives partially offset by unit volume declines.

Whirlpool Asia reported third-quarter net sales of $338 million compared to $346 million in the same prior-year period. Excluding the impact of currency, sales increased 2 percent. The region reported third-quarter GAAP operating profit of $15 million, or 4.4 percent of sales, compared to $24 million, or 6.7 percent of sales, in the same prior-year period.

“We are pleased with strong revenue growth, market share gains and ongoing margin expansion in North America and Latin America that overcame industry softness and currency volatility,” said Marc Bitzer, Whirlpool president and COO. “In Europe, the U.K. environment remains challenging, but we continue to execute brand and product transitions while adjusting our production levels to right-size our inventory. In Asia, we remain focused on deploying our products across our new, larger distribution network.”

The company says it expects full-year 2016 earnings per share of $11.50 to $11.75.

Whirlpool has about $21 billion in annual sales, 97,000 employees and 70 manufacturing and technology research centers throughout the world. More at www.The company markets Whirlpool, KitchenAid, Maytag, Consul, Brastemp, Amana, Bauknecht, Jenn-Air, Indesit and other major brand names in nearly every country around the world. More at www.whirlpoolcorp.com.

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