Whirlpool Corp. said today that its 4Q 2008 profit fell 77%, due in part to a higher restructuring charge, a recall expense, and the stronger dollar. Earnings were US$44 million, or $0.60 per share, compared with $187 million, or $2.38 per share, a year ago. Results included a $77 million restructuring charge and a $32 million product recall expense.
Revenue fell 19% to $4.32 billion from $5.32 billion. Sales in North American fell 18% to $2.5 billion, while revenue in Latin America dropped 26%. Revenue also slowed in Europe and Asia.
"The severity and scope of the global economic downturn has significantly increased over the last several months and had a significant impact on consumer demand in all parts of the world," said CEO Jeff M. Fettig. He added that the company is taking additional steps to cut costs because of significant declines in demand and volatility in costs and currency. "We expect 2009 economic conditions to be among the most challenging that we have faced," he said.
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