Benton Harbor, Mich.-based Whirlpool said it plans to raise prices for its goods by 5 percent to 10 percent in most key markets around the world, including the U.S., and to take measures to boost productivity.
“We believe our actions in total will enable us to overcome these significant cost increases, but the full effect of these benefits will not be realized until 2005,” said Chief Executive and Chairman Jeff Fettig.
The company’s now expecting full-year earnings of $5.85 to $5.95 a share, down from its prior projection at $6.20 to $6.35 a share. The average estimate of analysts polled by Thomson First Call is for earnings of $6.20.
Whirlpool issued the warning as it reported third-quarter earnings of $101 million, down from $105 million in the same quarter a year ago.
Earnings per share edged up to $1.50 from $1.48, as higher material and logistics costs and a rise in pension costs were offset by a lower tax rate and a change in the number of shares outstanding. Analysts polled by First Call had expected, on average, a profit of $1.52 a share for the quarter.
Sales rose 6.6 percent to $3.32 billion. The First Call-derived estimate was for sales of $3.239 billion.
Whirlpool’s shares added $1.03 to end at $59.31 in Tuesday’s dealings.
Earlier Wednesday, Swedish appliances maker Electrolux blamed high raw-material prices for an 11.7 percent decline in third-quarter earnings and a 2.6 percent decline in sales.
From CBS Marketwatch