ATLANTA (Reuters) – Home appliance maker Whirlpool Corp. on Wednesday said its third-quarter profit rose 4 percent, boosted by purchases of its higher-priced laundry and kitchen products.
But the company said its full-year earnings would be at the lower end of its prior forecast because its Latin American business is seen falling fall short of expectations.
Whirlpool, based in Benton Harbor, Michigan, had third-quarter profit of $105 million, or $1.48 a share, compared with $101 million, or $1.46 a share, a year earlier. Analysts on average had forecast profit of $1.50 a share, according to Reuters Research, a unit of Reuters Group Plc.
Sales rose nearly 13 percent to $3.1 billion, reflecting strong revenue growth in North America and Europe as consumers bought newer Whirlpool products such as the Duet washer-dryer pair and the KitchenAid premium line.
“We believe this earnings performance is solid, given our third-quarter challenge to overcome approximately $24 million from year-over-year increases in U.S. pension costs,” Whirlpool said in a statement.
Though sales increased in all regions, Whirlpool cited difficult economic conditions in Brazil and said it expects full year contributions from its Latin America business to fall short of its expectations.
The company said it expects profit for the year to come in closer to the lower end of its previous guidance of $5.90 to $6.10 a share. Analysts currently expect profit of $5.76 for the year, compared with $6.07 for 2002.
Whirlpool stock fell $1.34 to close at $69.90 on Tuesday on the New York Stock Exchange.
>From washingtonpost.com