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Whirlpool returns to a profit in 2nd quarter

Tue, 07/24/2012 - 7:01am
The Associated Press

Whirlpool Corp. returned to profitability in its second quarter, buoyed by cost cuts, higher prices and strength in North America. The world's biggest appliance maker bounced back from a loss a year ago tied to a collection dispute settlement.

The results were below Wall Street expectations, however, and revenue fell 5 percent. Its shares fell 2 percent in early premarket trading.

The company behind brands like KitchenAid, Maytag and its namesake reported net income of $113 million, or $1.43 per share for the three months ended June 30. It lost $161 million, or $2.10 per share, in the prior-year period.

Adjusted earnings were $1.55 per share when taking out a restructuring charge, gains related to a retiree health care plan and other items.

Analysts expected adjusted earnings of $1.64 per share for the latest quarter, according to a FactSet poll.

Revenue fell to $4.51 billion from $4.73 billion. Removing the impact of the stronger dollar, revenue rose about 2 percent.

Wall Street forecast $4.63 billion in revenue.

North American revenue rose 4 percent to $2.5 billion, but the Benton Harbor, Mich., company said that results were soft in Europe due to economic volatility.

Sales for Europe, the Middle East and Africa fell to $692 million from $841 million. These sales fell about 7 percent when stripping out the impact of the stronger dollar.

Latin American sales dipped to $1.2 billion from $1.3 billion. Excluding the stronger dollar and Brazilian tax credits, these sales increased 8 percent. Asian sales fell to $241 million from $257 million but gained 6 percent when taking out the stronger dollar.

Whirlpool reiterated its full-year adjusted earnings guidance of $6.50 to $7 per share. Analysts foresee earnings of $6.44 per share.

Its shares fell $1.31, or 2 percent, to $66 in premarket trading.

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