Whirlpool Corporation WHR today announced that net earnings increased 37 percent for the first quarter of 2006 to $118 million, or $1.70 per diluted share, compared to $86 million, or $1.26 per diluted share, in the same period last year. The increase reflects strong trade and consumer demand for the company’s innovative products around the world. Net sales increased 10 percent to $3.5 billion during the current period and represented a first-quarter record.
“Our first-quarter results reflect solid performance by all regional businesses, strong earnings momentum generated from innovation, productivity, and leverage from our global operating platform,” said Jeff M. Fettig, Whirlpool’s chairman and chief executive officer. “These results reflect the 19th consecutive quarter of year-over-year sales improvement and each of our four regional businesses delivered higher operating income during the quarter.”
Record unit shipments, sales growth and a positive product mix combined with productivity improvements to drive a double-digit improvement in operating profit and offset acquisition related expenses, higher commodity prices, higher new product introduction costs and increased restructuring costs. Results also benefited from a reduced effective tax rate.
Results in the quarter do not include Maytag Corporation. Expenses of $13 million associated with the transaction are included within the company’s first-quarter operating profit. Maytag’s operating results will be included in the company’s second-quarter statement of operations.
Fettig added: “Industry demand remains positive and we continue to maintain our outlook on the strength of the economic environment despite volatile commodity prices. Our plans, which include accelerating new product innovation to the marketplace, driving total cost productivity, controlling spending by reducing overhead and infrastructure while increasing investments in consumer activities and managing our overall mix of business, remain on track. We remain confident in the underlying operating fundamentals of our business and are pleased with our first-quarter operating and financial performance.”
During the quarter, cash used in operating activities of $202 million improved $83 million compared to last year, primarily due to lower working capital requirements.
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