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Whirlpool Corp. (Benton Harbor, MI, U.S.) sales were up in the second quarter of 2011, but reported a second-quarter net loss of $161 million, compared to net earnings of $205 million in the second quarter of 2010.
Second-quarter 2011 results include the settlement of a Brazilian collection dispute in a legal battle that has been going on since 1989. Whirlpool announced in June that it would settle the dispute for $603 million. See:Whirlpool Will Pay $603 Million to Settle 22-Years-Long Lawsuit.
Whirlpool said global shipments were up year-over-year in 2011 compared to 2010. Sales in 2Q 2011 were $4.7 billion, up 4% from $4.5 billion reported in 2Q 2010, the increase driven by favorable currency trends.
Second-quarter operating profit was $223 million compared to $331 million in 2Q 2010. Profits were helped by cost reduction and productivity initiatives and hurt by much higher raw materials and oil-related costs and an unfavorable product price/mix.
Whirlpool missed its targets but still delivered a "solid quarter," according to Chairman and CEO Jeff M. Fettig, thanks to cost reduction and product innovations. "Our recently announced price increases in key countries around the world help position us for stronger second half performance," he added.
Regionally, Whirlpool reported:
• Whirlpool North America: 2Q sales of $2.4 billion were down 7% from 2Q 2010.
• Whirlpool Europe, Middle East and Africa: 2Q 2011 sales were $841 million, up 14% from 2Q 2010.
• Whirlpool Latin America: 2Q 2011 net sales were $1.3 billion, up 25% from 2Q 2010.
• Whirlpool Asia: Whirlpool Asia 2Q 2010 sales were $257 million, down 2% from 2Q 2010, blamed primarily on slowing demand in India.
Whirlpool CEO Fettig looks for more global economic volatility in the short-term. "While demand remains positive globally, we expect to continue to see demand volatility as consumers around the world remain impacted by economic uncertainties and high inflation," said Fettig. "We believe the announced and implemented price increases, innovation launches, cost reductions, and productivity improvements will drive positive margin improvement throughout the second half."
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