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Whirlpool's third-quarter net earnings were $79 million, down from $87
million in the same period in 2009. Sales were $4.5 billion, up 0.5%
from 3Q of 2009.
Third-quarter operating profit was $234 million compared with $189
million in 3Q 2009. The increase was credited to cost reduction and
productivity initiatives as well as increased monetization of some tax
credits, but these were offset by higher material costs and lower
product price/mix.
Whirlpool Corp. chairman and CEO Jeff M. Fettig said the challenging
environment of the third quarter, which resulted in a significant
slowdown in appliance sales, was not unexpected.
NORTH AMERICA: Unit shipments were up 1% in North America but 3Q sales
of $2.4 billion were down 3% from the prior year. U.S. industry unit
shipments of major appliances (washers, dryers, refrigerators,
freezers, dishwashers, ranges, and compactors) decreased 3% in the
third quarter.
Third-quarter 2010 adjusted operating profit for the North America
region was $114 million, down from $147 million in the prior year, hurt
by lower product price/mix and higher material costs. These factors
were partially offset by favorable cost reduction and productivity
initiatives.
Whirlpool said it now expects full-year 2010 U.S. industry unit
shipments to increase about 3% - down from its previous expectation of
a 5% increase.
EUROPE: Whirlpool Europe sales were down 8%, to $827 million,
from the prior year. The company said that excluding currency effects
sales were approximately equal to the prior year. Overall industry unit
demand during the quarter was up 3-4% over 3Q 2010.
The European business reported a 3Q operating profit of $26 million, up
from $14 million in the previous year. The improvement came primarily
from successful cost reduction and productivity initiatives, but was
partially offset by lower price/mix and higher material costs.
Whirlpool expects full-year 2010 industry growth in Europe to be in the
1-3% range compared to the prior expectation of flat demand.
LATIN AMERICA: Whirlpool Latin America 3Q net sales were $1.1 billion,
up 13% from 3Q 2009. Excluding currency translation, sales increased
about 9%.
Operating profit was $143 million, up form $93 million 3Q 2009. The
improvement was primarily related to increased monetization of tax
credits, cost reductions, and productivity initiatives. These factors
were partially offset by higher material costs and lower price/mix.
Whirlpool still expects full-year 2010 Brazilian appliance shipments to
increase approximately 10%.
ASIA: Whirlpool Asia 3Q sales were $195 million, up 21% 3Q 2009.
Excluding currency effects, sales increased 16%. Adjusted operating
profits were $5 million in the quarter, approximately equal to 3Q 2009.
Favorable unit volume levels were offset by higher material and
oil-related costs.
Whirlpool now expects full-year 2010 industry unit shipments in Asia to
be up 8-10%; its previous expectation was for a 5-8% increase.
OUTLOOK: For the full-year 2010, Whirlpool expects reported earnings
per diluted share between $7.80 and $8.30.
As reported by ApplianceMagazine.com on Oct. 4, Whirlpool was forced to
record an expense of $91.8 million, or approximately $1.20 per diluted
share, during the third quarter of 2010. This came about when
Embraco North America, Inc., from Whirlpool's compressor business
headquartered in Brazil, struck a plea agreement relating to the U.S.
government's antitrust investigation of the compressor industry.
Embraco agreed to pay $91.8 million in six annual installments, with
the first payment expected to be made in the fourth quarter of fiscal
2010.
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