Whirlpool has reported a 76 percent drop in quarterly profit as sales crumbled worldwide, and the world’s biggest appliance maker said earnings would fall further in 2009, sending its shares down more than 9 percent.
The maker of Whirlpool, Maytag and Kitchen Aid appliances also posted an operating loss in North America, its largest market, and said on Monday that it was talking to its banks to ask for additional flexibility in its capital structure.
Whirlpool’s debt ratings have been downgraded to a notch above speculative, or “junk,” status by major agencies recently, and the company has cut thousands of jobs in the past year.
Whirlpool said fourth-quarter net income fell by 76% to $44 million, or 60 cents a share, from $187 million, or $2.38 a share, a year earlier. The latest quarter included $77 million in restructuring costs, compared with $15 million in the prior year.
Net sales decreased 19% to $4.32 billion for the company, which overtook Electrolux as the global market leader by revenue following its 2006 acquisition of Maytag. Excluding the impact of the stronger dollar, sales fell 13%.
Analysts were looking for earnings of 78 cents a share on revenue of $4.88 billion. Gross margin slumped to 11% from 15.7% on the sales woes. Whirlpool’s North American business swung to a loss on “significantly” lower sales. U.S. shipments of major appliances fell 10% and revenue declined 18%. Revenue from European operations dropped 16% as demand fell 10%.
