Whirlpool 3Q Profits Down 9.2 Percent

Benton Harbor, MI, United States (AHN) – Whirlpool reported third-quarter profits Wednesday that met analysts’ expectations but declined 9.2 percent. The world’s largest appliance manufacturer lowered its full-year outlook for shipments in North America, citing a challenging economy.

Earnings for the quarter ended Sept. 30 was $79 million, or $1.02 a share, down from $87 million, or $1.15 per share, a year ago. Adjusted for charges under a $93 million agreement with the Canadian and U.S. governments to settle a price-fixing case of a subsidiary, profit was $2.22 per share.

Sales rose 0.5 percent to $4.5 billion, driven by double-digit growth in Asia and Latin America.

Revenues in Asia increased 21 percent to $195 million. Without currency adjustments, sales rose 16 percent. Whirlpool expects its shipments to the region for the full year to jump 8 to 10 percent, instead of 5 to 8 percent as it had previously forecast.

In Latin America, sales rose 13 percent, or 9 percent excluding currency shifts, to $1.1 billion. Full-year outlook for shipments in the region remains at 10 percent.

Sales in Europe fell 8 percent to $827 million but the Michigan-based company says it expects shipments to increase 1 to 3 percent.

North American sales dropped 3 percent to $2.4 billion. Whirlpool lowered its full-year forecast of 5 percent growth in shipments to 3 percent.

The company projected full-year earnings per share of between $7.80 and $8.30 after charges under the anti-trust plea agreement. Before charges, earnings are expected to be $9.56 to 10.06 per share.

“As expected, we faced a challenging environment during the quarter which resulted in a significant slowing in sales growth compared to the first half of the year,” chairman and chief executive Jeff Fettig said in a statement. “Our ongoing focus on cost reductions, productivity and innovative new product launches continues to enable us to adapt to changes.”

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