Whirlpool Corp. reported a first-quarter profit that missed
analysts' estimates and reduced its full-year outlook as adverse
currency effects and weaker demand in Brazil cut into sales.
The home appliance manufacturer said in February that it
expected a higher profit this year as raw material costs fall and
as the company begins to reap benefits from last year's
acquisitions in Europe and Asia. On Tuesday, though, the company
said foreign exchange fluctuations and a weakened demand
environment in Brazil offset acquisition-related benefits as well
as cost and capacity-reduction initiatives.
On account of the stronger dollar and the market in Brazil, the
company said it now expects to earn full-year adjusted earnings of
$12 to $13 a share, down from its earlier guidance for $14 to $15 a
share and below the $13.91 analysts have projected.
Chief Executive Jeff Fettig said Whirlpool's "integration plans
in Europe and China remain on track, and we have taken actions to
overcome recent currency movements," adding that the company
continues "to invest in our leading brand portfolio and innovative
new products while adjusting to a continuing volatile global
economy."
The company didn't elaborate on its plan to offset currency
effects.
In all, Whirlpool reported a profit of $191 million, or $2.38 a
share, up from $160 million, or $2.02 a share, a year earlier.
Excluding certain items, earnings fell to $2.14 a share from $2.20
a share.
Revenue increased 11.1% to $4.85 billion. Stripping out foreign
currency fluctuations, revenue jumped 23% from the previous year.
Acquisitions primarily drove the revenue rise, the company
said.
Analysts were looking for $2.34 in per-share profit and $5.1
billion in revenue, according to Thomson Reuters.
Shares in the company, up 28% over the past 12 months through
Monday's close, were inactive in premarket trading.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
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