Whirlpool net income rises despite revenue drop

BENTON HARBOR—Whirlpool Corp. (NYSE: WHR), the world’s largest appliance maker, announced net income of $358 million or $5.57 a share for the third quarter ended Sept. 30, up from $210 million or $3.22 a share in the third quarter of 2018, Revenue was $5.09 billion, down from $5.33 billion a year earlier.

For the nine months, net income was $896 million or $13.93 a share, up from a loss of $353 million or $5.18 a share a year earlier. Revenue was $15.04 billion, down from $15.38 billion a year earlier.

Driving the profitability increase: a $516 million gain on the sale and disposal of businesses, mostly due to the sale of its Brazil-based Embraco compressor business. Also, the cost of goods sold in the quarter fell to $4.35 billion from $4.43 billion last year, while selling, general and administrative expenses fell to $491 million from $550 million a year earlier.

“We have sustained momentum towards achieving our long-term financial goals despite global economic volatility and remain committed to our robust strategy for creating shareholder value,” said Whirlpool CEO Marc Bitzer. “Our fundamentals remain strong, and we made solid progress against our stated priorities with near-break even performance in EMEA and strong results in North America.”

Whirlpool North America reported third-quarter net sales of $3 billion, up 0.5 percent from a year earlier. The region reported third-quarter earnings before interest and taxes (EBIT) of $387 million, or 12.8 percent of sales, compared to EBIT of $343 million, or 11.5 percent of sales, in the same prior-year period.

Whirlpool Europe, Middle East and Africa reported third-quarter net sales of $1.1 billion down 3.8 percent from a year earlier, caused mostly by unfavorable currency translation. The region reported a third-quarter EBIT loss of 18 million, or 1.7 percent of sales, compared to a loss of 39 million, or 3.4 percent of sales, in the same prior-year period.

Whirlpool Latin America reported third-quarter net sales of $632 million, compared to $878 million in the same prior-year period, a decrease of 27.9 percent. The region reported third-quarter EBIT of $29 million, or 4.6 percent of sales, compared to EBIT of $49 million, or 5.6 percent of sales, in the same prior-year period. During the quarter, the impact of product price/mix and lower raw material inflation was more than offset by unfavorable currency and lower unit volumes related to temporary trade inventory timing.

Whirlpool Asia reported third-quarter net sales of $358 million, compared to $339 million in the same prior-year period, an increase of 5.7 percent. Excluding the impact of currency, sales increased 7.1 percent. The region reported third-quarter EBIT of $9 million, or 2.4 percent of sales, compared to $13 million, or 3.8 percent of sales, in the same prior-year period. During the quarter, the favorable impact of higher unit volumes, lower raw material inflation and cost takeout initiatives were more than offset by continued brand transition investments in China.

For the full-year 2019, the Company decreased its GAAP earnings per diluted share guidance to $16.80 to $17.55, as additional product warranty and liability expense was partially offset by adjustments to the Embraco gain on sale calculation. The Company has reaffirmed its ongoing earnings per diluted share guidance of $14.75 to $15.50, and is trending towards the high end of the range.

Whirlpool, with $21 billion in annual sales, 92,000 employees and 65 manufacturing and technology research centers around the world, makes and markets the Whirlpool, KitchenAid, Maytag, Consul, Brastemp, Amana, Bauknecht, JennAir, Indesit and other major appliance brands. Additional information about the company can be found at whirlpoolcorp.com, or find us on Twitter at @WhirlpoolCorp.

Leave a Reply

Your email address will not be published.

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