Whirlpool returns to a profit in 2nd quarter
BENTON HARBOR, Mich. (AP) — Whirlpool Corp. returned to profitability in its second quarter, buoyed by cost cuts, higher prices and strength in North America.
The world’s biggest appliance maker bounced back from a loss a year ago tied to a collection dispute settlement.
The results were below Wall Street expectations, however, and revenue fell 5 percent. Its shares fell 2 percent in early premarket trading.
The company behind brands like KitchenAid, Maytag and its namesake reported net income of $113 million, or $1.43 per share for the three months ended June 30. It lost $161 million, or $2.10 per share, in the prior-year period.
Adjusted earnings were $1.55 per share when taking out a restructuring charge, gains related to a retiree health care plan and other items.
Analysts expected adjusted earnings of $1.64 per share for the latest quarter, according to a FactSet poll.
Revenue fell to $4.51 billion from $4.73 billion. Removing the impact of the stronger dollar, revenue rose about 2 percent.
Wall Street forecast $4.63 billion in revenue.
North American revenue rose 4 percent to $2.5 billion, but the Benton Harbor, Mich., company said that results were soft in Europe due to economic volatility.
Sales for Europe, the Middle East and Africa fell to $692 million from $841 million. These sales fell about 7 percent when stripping out the impact of the stronger dollar.
Latin American sales dipped to $1.2 billion from $1.3 billion. Excluding the stronger dollar and Brazilian tax credits, these sales increased 8 percent. Asian sales fell to $241 million from $257 million but gained 6 percent when taking out the stronger dollar.
Whirlpool reiterated its full-year adjusted earnings guidance of $6.50 to $7 per share. Analysts foresee earnings of $6.44 per share.