Whirlpool returns to profits in second quarter

BENTON HARBOR—Whirlpool Corp. (NYSE: WHR) posted net income of $67 million or $1.04 per share in the second quarter ended June 30, compared to a loss of $657 million or $9.50 a share a year earlier. Revenue was $5.19 billion, up from $5.14 billion a year earlier.

For the first six months of 2019, net income was $538 million or $8.42 a share, compared to a loss of %563 million or $8.03 a share a year earlier. Revenue was $8.95 billion, down from $10.05 billion a year earlier.

Whirlpool also record second-quarter ongoing earnings per diluted share of $4.01, a 25 percent increase from $3.20 a share in the same prior-year period.

The company also raised its earnings guidance, and now expects to deliver 2019 earnings per diluted share of $17.80 to $18.55 on a GAAP basis and $14.75 to $15.50 on an ongoing basis.

Non-cash items negatively impacted prior-year results by approximately $860 million—mostly a writedown of goodwill, the price paid for other businesses beyond the fair market value of their tangible assets, and other writedowns of assets.

“At our recent Investor Day, we laid out a robust strategy for creating shareholder value and our excellent second-quarter results impressively demonstrate that we are on track,” said Marc Bitzer, Whirlpool chairman and CEO. “Our strong momentum allows us to raise our full-year guidance despite continued global macro uncertainties.”

Whirlpool North America reported second-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 second-quarter earnings before interest and taxes (EBIT) of $353 million, or 12.4 percent of sales, compared to $331 million, or 11.9 percent of sales, in the same prior-year period. During the quarter, the favorable impact of product price/mix was partially offset by lower unit volumes and cost inflation.

Whirlpool Europe, Middle East and Africa reported second-quarter net sales of $1.0 billion, compared to $1.1 billion in the same prior-year period. Excluding the impact of currency, sales decreased (0.2) percent. The region reported a second-quarter EBIT loss of $28 million, or 2.7 percent of sales, compared to a loss of $25 million, or 2.3 percent of sales, in the same prior-year period.

Whirlpool Latin America reported second-quarter net sales of $888 million, compared to $852 million in the same prior-year period. Excluding the impact of currency, sales increased 9.6 percent. The region reported second-quarter EBIT of $56 million, or 6.3 percent of sales, compared to $33 million, or 3.8 percent of sales, in the same prior-year period. During the quarter, the favorable impact of product price/mix was partially offset by unfavorable currency. Prior-year results were negatively impacted by approximately $20 million related to the Brazil trucker strike, partially offset by favorable tax credits of $8 million.

Whirlpool Asia reported second-quarter net sales of $430 million, compared to $428 million in the same prior-year period. Excluding the impact of currency, sales increased 4.7 percent. The region reported second-quarter EBIT of $15 million, or 3.6 percent of sales, compared to $43 million, or 10.1 percent of sales, in the same prior-year period. During the quarter, the favorable impact of product price/mix was more than offset by increased brand transition investments in China. In addition, acquisition-related government incentives of approximately $15 million favorably impacted prior-year results.

Whirlpool is the world’s largest appliance manufacturer, with $21 billion in annual sales, 92,000 employees and 65 manufacturing and technology research centers in 2018. The company markets Whirlpool, KitchenAid, Maytag, Consul, Brastemp, Amana, Bauknecht, JennAir, Indesit and other major brand names in nearly every country throughout the world. Morea t www.whirlpoolcorp.com.

Leave a Reply

Your email address will not be published. Required fields are marked *

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