Home
Global Supplier Directory
APPLIANCE Engineer
Supplier Solutions
APPLIANCE Line
Whitepaper Library
Calendar of Events
Association Locator
Contents Pages
Market Research
Subscription Center


 
Daily News

Whirlpool Reports Strong Q2 Sales
Jul 25, 2006
 Printable format
 Email this Article
 Search

Whirlpool Corporation (Benton Harbor, Michigan, U.S.) said today that second quarter net sales rose 33 percent to a record U.S. $4.7 billion, reflecting the acquisition of Maytag Corporation and strong global demand for Whirlpool products. Excluding the recent acquisition, net sales increased approximately 5 percent.

Net earnings from continuing operations for the second quarter of 2006 were $100 million, or $1.26 per diluted share, compared to $96 million, or $1.42 per diluted share in the same period last year. Second quarter net earnings include the results and integration costs of the Maytag acquisition.

During the second quarter Whirlpool said it intends to sell off the Hoover floor care, Dixie-Narco vending, Amana commercial microwave, and Jade commercial products appliance businesses. Financial results from these businesses are included in discontinued operations. Total net earnings for the second quarter, including discontinued operations, were $91 million or $1.14 per diluted share.

“All of our regional businesses delivered higher unit volume, sales and operating profit performance during the quarter,” said Jeff M. Fettig, Whirlpool’s chairman and chief executive officer. “I am particularly pleased with the trade and consumer response to our new product innovations, which have been exceptional. We expect material and oil-related cost increases to continue to accelerate during the second-half of 2006. Accordingly, the company is implementing cost-based price adjustments, productivity initiatives and cost controls to offset the heightened cost environment. Our Maytag integration activities are progressing at an efficient and disciplined pace and remain on-track with previous expectations.”

Operating profit results, which reflect strong sales growth and productivity improvements, offset purchase accounting charges, acquisition integration related expenses, higher commodity prices, new product introduction costs, and increased restructuring costs.

“Global industry growth for the second quarter was in-line with our expectations and consistent with our prior guidance," Fettig said. "As previously communicated, we expect flat-to-moderate industry unit shipment growth during the second half of the year and anticipate global industry growth of 1-to-2 percent in 2007. Despite somewhat softer near-term demand, the underlying industry fundamentals remain positive.”

Whirlpool Europe reported record revenue and operating profit during the second quarter. Revenue increased approximately 5 percent from last year’s levels to a record $806 million, driven by strong Whirlpool brand performance. Currency translations did not have a material impact on sales. Company unit shipments, reflecting continued strong demand for the region’s innovative product line, continued their positive trend during the quarter and exceeded estimated industry demand of 1 percent to 2 percent. Based on current economic conditions, the company continues to expect full-year industry unit shipments in 2006 to increase approximately 1 percent to 2 percent.

Whirlpool Latin America sales increased 17 percent from the prior-year period to $580 million, driven by strong appliance unit volume. Excluding currency translations, sales increased approximately 13 percent. Industry unit shipments of appliances are estimated to have increased approximately 11 percent during the quarter. Record operating profit of $55 million, which included the impact of currency, improved 76 percent during the quarter and operating profit margins expanded to 9.4 percent. Productivity improvements and regional incentives more than offset higher material prices and increased brand investment. Based on the current economic environment in Brazil, the company continues to expect industry shipments in 2006 to increase 8 percent to 10 percent.

Whirlpool Asia delivered operating profit of $1 million for the second quarter compared to a $4 million loss in the prior year. Sales of $133 million were up 8 percent from last year. Excluding currency translations, sales increased approximately 11 percent. The operating profit improvement reflects improved performance in India, the regions largest market, and reflects the success of new product launches, productivity improvements and a favorable product mix. Based on current economic conditions, the company continues to expect full-year industry unit shipments to increase 5-to-7 percent.

Back to Daily News

 

Daily News

...........................................................

Nov 21, 2014: Electrolux: new U.S. fridge efficiency requirements are more complex than anticipated

Nov 21, 2014: Whirlpool brand launches Perceptions of Care video

Nov 21, 2014: Hon Hai 3Q profit $1 billion

Nov 21, 2014: Environmental Product Declarations for aluminum product types released

Nov 20, 2014: Report: Drop in affluents' consumer confidence may foretell signal trouble ahead for some retailers

More Daily News>>

RSS Feeds
.........................................................
Appliance Industry
Market Research

...........................................................

November 2014: U.S. Appliance Industry: Market Value, Life Expectancy & Replacement Picture 2014
October 2014: Portrait of the European Appliance Industry
September 2014: Appliance Industry Focus: HVAC
June 2014: Appliance Magazine Market Insight: April 2014




 
Contact Us | About Us | Subscriptions | Advertising | Home
UBM Canon © 2014  

Please visit these other UBM Canon sites

UBM Canon Corporate | Design News | Test & Measurement World | Packaging Digest | EDN | Qmed | Plastics Today | Powder Bulk Solids | Canon Trade Shows