Whirlpool Net Income Jumps Despite Lower Sales

BENTON HARBOR — The world’s largest appliance maker, Benton Harbor-based Whirlpool Corp. (NYSE: WHR), reported net income of $320 million or $4.15 a share in the second quarter ended June 30, up from $177 million or $2.21 a share a year earlier.

That increase in profit came despite a slight decline in sales, to $5.2 billion in the quarter, down from $5.21 billion a year earlier.

For the six months, Whirlpool posted net income of $470 million or $6.06 a share, up from $368 million or $4.60 a share a year earlier. Revenue was $9.61 billion, down from $10.05 billion a year earlier.

The increase in profitability came thanks to a reduction in the cost of products sold, lower restructuring costs, and a sharply lower tax rate.


“We delivered another quarter of record earnings and margin expansion while overcoming challenges in several key countries through focused execution of our plans,” said Jeff M. Fettig, Whirlpool chairman and CEO.  “Our leading portfolio of brands, innovative new products and strong ongoing cost productivity programs have enabled us to continue creating significant value for our shareholders.”

The company said that excluding the effects of a stronger United States dollar, sales increased by 3 percent in the quarter.

The company also reported a profitability measure it called “ongoing business operating profit” of $435 million, or 8.4 percent of sales, in the quarter, up from $355 million, or 6.8 percent of sales, in the same prior-year period. This figure excludes restructuring expenses, acquisition-related transition costs, legacy product warranty and liability expenses, and taxes.

Among geographic regions, Whirlpool North America reported second-quarter net sales of $2.8 billion, compared to $2.7 billion in the same prior-year period. Excluding the impact of currency, sales increased 4 percent. The region reported a second-quarter GAAP operating profit of $340 million, or 12.3 percent of sales, compared to $287 million, or 10.7 percent of sales, in the same prior-year period. The company continues to expect full-year 2016 industry unit shipments in the U.S. to increase by 5 to 6 percent.

Whirlpool Europe, Middle East and Africa reported second-quarter net sales of $1.3 billion, down slightly from same prior-year period. Excluding the impact of currency, sales were flat. The region reported second-quarter GAAP operating profit of $46 million, or 3.5 percent of sales, compared to $51 million, or 3.8 percent of sales, in the same prior-year period. The company continues to expect full-year 2016 industry unit shipments to be flat to up 2 percent.

Whirlpool Latin America reported second-quarter net sales of $826 million, compared to $854 million in the same prior-year period. Excluding the impact of currency, sales increased by 4 percent. The region reported second-quarter operating profit of $50 million, or 6.1 percent of sales, compared to $36 million, or 4.2 percent of sales, in the same prior-year period. The company continues to expect full-year 2016 industry unit shipments in Brazil to decrease by 10 percent.

Whirlpool Asia reported second-quarter net sales of $363 million compared to $381 million in the same prior-year period. Excluding the impact of currency, sales were flat. The region reported a second-quarter GAAP operating profit of $16 million, or 4.4 percent of sales, compared to $27 million, or 7.1 percent of sales, in the same prior-year period. The company continues to expect full-year 2016 industry unit shipments to be flat.

For the full year 2016, Whirlpool Corporation expects to report GAAP earnings per diluted share of $11.50 to $12.00 and ongoing business earnings per diluted share of $14.25 to $14.75.

More at http://www.whirlpoolcorp.com.

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