DOW JONES NEWSWIRES
Whirlpool Corp. (WHR) said its third-quarter profit fell 47%, partially on a previously disclosed settlement with Brazil, as sales remained weak across most business segments.
Still, earnings well topped expectations and the appliance giant boosted its 2009 target to about $4.25 a share, compared with its prior expectation of $3.50 to $4.
"Our improved outlook reflects our success in restructuring our business to aggressively align our capacity and resources to lower demand levels," said Chairman and Chief Executive Jeff Fettig. He added Whirlpool still continues "to see uncertain and volatile demand levels in many markets."
The company has dealt with higher raw-material expenses and is in the midst of significant layoffs as consumers during the economic downturn have avoided buying refrigerators, stoves and other major appliances. In September, Fettig said a sustained recovery in the appliance industry was unlikely before 2011 as demand would be choppy in 2010 with some gradual improvement as housing construction recovers.
Whirlpool reported earnings of $87 million, or $1.15 a share, down from $163 million, or $2.15, a year earlier. The latest results included a 50-cent impact from resolving a settlement with Brazilian competition officials.
Revenue fell 8.2% to $4.5 billion; excluding currency effects, the drop was about 3%.
Analysts surveyed by Thomson Reuters had most recently forecast earnings of 77 on $4.28 billion in sales.
Gross margin fell to 13.8% from 14%.
Sales fell 9% in North America and 17% in Europe. Asia saw an 18% jump, or 26% excluding currency changes.
Shares of Whirlpool closed at $73.54 Thursday and didn't trade premarket. As of Thursday's close, they were up 78% this year.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855; nathan.becker@dowjones.com;