Whirlpool Corp., the world's biggest appliance maker, said ongoing business operating profit was up 137% in the fourth quarter of 2012, with operating profit improving 25%.
The company had 4Q GAAP net earnings of $122 million, compared to net earnings of $205 million, in the fourth quarter of 2011, when earnings included tax credits.
Sales in 4Q 2012 were $4.8 billion, from $4.9 billion in 4Q 2011, but sales were actually up 2% when currency impacts were excluded, along with lower Brazilian (BEFIEX) tax credits.
"Our actions have clearly produced the expected improvement in operating margins, resulting in strong earnings per share and underlying cash flow," said Jeff M. Fettig, chairman and chief executive officer of Whirlpool Corporation. "As outlined in October 2011, we successfully improved operating margins through our cost-based price increases, product mix, cost and capacity-reduction initiatives and ongoing productivity programs. Those actions, combined with improving trends in U.S. housing and growth opportunities in emerging markets, create positive momentum going into 2013."
Fourth-quarter GAAP operating profit was $258 million, from $205 million in 4Q 2011. Adjusted operating profit was $309 million, approximately 7% of sales, from 2011's $128 million, or about 3% of sales.
Whirlpool said positive product price and mix, productivity, and cost and capacity-reduction initiatives all helped 4Q results.
GAAP operating profit for full-year 2012 was $869 million, from $792 million in 2011. Adjusted profit was more than $1.0 billion, or approximately 6% of sales, almost doubling 2011's $559 million, or 3% of sales.
Full-year 2012 sales were $18.1 billion, down 3% from $18.7 billion in 2011. Excluding currency impacts and lower Brazilian tax credits, sales were up 3%.
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