Whirlpool Profit Jumps on Cost Cutting; Sales Slip 7.4%
January 29 2016 - 7:23AM
Dow Jones News
By Joshua Jamerson
Whirlpool Corp. reported earnings more than doubled in the
fourth quarter on cut-cutting measures and acquisitions, as the
appliance maker cut costs amid a slump in sales.
The Benton Harbor, Mich.-based company said a stronger dollar,
which makes its appliances more expensive abroad, cut revenue by 4%
in the three months ended Dec. 31. It also has been hamstrung by
dropping demand in emerging markets.
Sales slid to $800 million in Latin America during the quarter
from $1.3 billion a year ago, thanks to currency effects and weak
demand in Brazil. Sales in North America edged up to $2.9 billion
from $2.8 billion a year ago.
The company said it expects shipments to increase in North
America by 5% in 2016 as shipments to Brazil decrease by 10%.
Whirlpool says South Korean competitors Samsung Electronics Co.
and LG Electronics Inc. have nabbed a bigger share of the U.S.
market by selling washers at less than they cost to produce. The
company last month asked the U.S. government to impose duties on
washing machines made in China by Samsung and LG.
The South Korean companies have gained share in both kitchen and
laundry appliances.
Overall for the quarter, the company reported earnings of $180
million, or $2.28 a share, up from $81 million, or $1.02 a share,
in the year-ago period. Its ongoing operating profit rose to $4.10
a share from $3.52 a year ago.
Sales slid 7.4% to $5.6 billion. Analysts polled by Thomson
Reuters had expected per-share earnings of $3.91 on revenue of
$5.74 billion.
For the full year 2016, Whirlpool expects per-share earnings in
a range of $11.25 to $12 and ongoing business earnings per diluted
share of $14 to $14.75.
Analysts, on average, were expecting earnings of $14.41 a share,
according to Thomson Reuters.
Shares in the company, down about 35.3% this year, were
unchanged premarket from Thursday's close of $132.02.
Write to Joshua Jamerson at joshua.jamerson@wsj.com
(END) Dow Jones Newswires
January 29, 2016 07:08 ET (12:08 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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