Whirlpool, the largest US white goods maker, reported a 49 per cent rise in second-quarter net earnings on Thursday, reflecting improved productivity and new products.
Net earnings rose to $94m, or $1.35 per share, compared to $63m, or $0.91 a share, in the same period last year.
Second-quarter net sales of $2.99bn represent an increase of 9 per cent for the maker of Whirlpool, KitchenAid and Consul products. Excluding currency transactions and sales from acquisitions made in 2002, net sales increased by 2 per cent.
The results prompted David Whitwam, chief executive, to reiterate expectations of full-year earnings per share of $5.90-$6.10. Whirlpool revised expectations down from $6.2-$6.4 per share in April.
An operating profit of $195m reflects “the solid contributions from our global businesses and brands, including the introductions of innovative new products worldwide”, Mr Whitwam said. “The results also demonstrate the positive impact from continuous improvements in productivity, and from actions we are taking to align the company’s cost structure with current economic and industry conditions.”
Whirlpool’s sales in North America rose 6.7 per cent to $1.96bn, but its operating profit fell 5 per cent, due mainly to pension and healthcare costs and recall charges.
Strong consumer demand for new products pushed sales in Europe up to $628m.
Sales in Latin America remained flat amid difficult economic conditions.
Whirlpool blamed Sars for a 15 to 20 per cent decline in sales in the Hong Kong region.
Its main rival Electrolux, the world’s largest home appliance manufacturer, reported a 13 per cent decline in second-quarter earnings on July 18.
Whirlpool shares closed on Wednesday night in New York up 2 per cent at $65.95
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