Whirlpool Corp., the world's largest home-appliance manufacturer
by sales, said second-quarter profit slipped 1% as continued
weakness in Latin America offset acquisition-driven strength in
other geographic segments.
The Benton Harbor, Mich.-based company has been stung by a sharp
drop in Brazilian demand for home appliances. The impact of the
stronger dollar has added to the company's woes and in April
Whirlpool announced plans to reduce its workforce by about 15% in
Brazil.
In its latest quarter, revenue from the Latin American unit fell
to $900 million from $1.1 billion amid ongoing weak demand in
Brazil. Excluding currency effects, though, Whirlpool said sales
rose 1%.
Sales in the Europe, Middle East and Africa business, meanwhile,
nearly doubled from the year-ago period, to $1.3 billion. Benefits
from acquisition integration activities and cost-control efforts
more than offset the impact of unfavorable exchange rates, the
company said.
North American sales totaled $2.7 billion, little changed from
the year-ago quarter, and up 1% on a currency-adjusted basis. In
Asia, sales grew to $381 million from $211 million a year
earlier.
Overall, Whirlpool reported a profit of $177 million, or $2.21 a
share, down from $179 million, or $2.25, a year earlier. Sales grew
11% to $5.21 billion, primarily driven by acquisitions. Stripping
out currency impacts, Whirlpool said sales jumped over 25%.
Analysts polled by FactSet were looking for $2.61 in per-share
profit on $5.29 billion in revenue.
The company affirmed its full-year adjusted outlook, after
cutting it in April, still expecting earnings of $12 to $13 a
share. Shipments will rise 4% this year in the North America
business, Whirlpool said, but the company expects shipments to drop
15% in Latin America. Whirlpool anticipates flat shipments in Asia
and shipments that are flat to up 2% in the EMEA segment.
Last year, Whirlpool acquired Indesit Co., an Italian company
that sells appliances under its name and the Hotpoint and Scholtes
brands, and 51% of Hefei Rongshida Sanyo Electric Co. of China.
"Our long-term growth strategy remains on track," said Chief
Executive Jeff Fetig.
Gross margin improved to 17.4% from 16.8% a year earlier.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
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