Whirlpool operating profit up 140 percent in 3Q
Whirlpool Corp. (NYSE: WHR) announced today third-quarter GAAP net earnings of $74 million, or 94 cents per diluted share, compared to $177 million, or $2.27 per diluted share, in the same period last year. However, prior-year GAAP earnings included tax credits equal to $2.35 per share, so on an adjusted basis, diluted earnings per share improved to $1.80, compared to 29 cents in the prior year.
The improvement in profits at the Benton Harbor-based global corporation was attributed to factors including cost-cutting initiatives that reduced manufacturing capacity in North America and Europe over the past year. Whirlpool also raised its prices earlier this year.
Sales in the quarter were $4.5 billion, compared to $4.6 billion in 2011, reflecting problems with the European economy. However, Whirlpool said that after excluding the impact of both foreign currency and lower Brazilian tax credits, sales equaled an increase of approximately 5 percent.
“We have delivered three consecutive quarters of year-over-year operating margin improvement this year driven by the actions we outlined last October,” said Jeff M. Fettig, chairman and CEO of Whirlpool, the world’s largest manufacturer of home appliances. “Our ongoing business performance should continue to improve due to our strong cadence of new product innovations, the benefit of our cost-savings programs and positive trends in U.S. housing.”
Whirlpool Corp. is increasing its full-year ongoing business operations diluted earnings per share guidance to a range of $6.90 to $7.10, compared to the previous range of $6.50 to $7.00. The company maintains its full-year GAAP diluted earnings per share guidance of $5.00 to $5.50, which assumes a full-year effective tax rate of 25 percent.