Whirlpool has said profit rose 77 percent as the slumping dollar pushed up sales in Europe and Latin America. The stock fell 3.4 percent as revenue trailed analysts’ estimates.
Second-quarter net income increased to $161 million, or $2 a share, from $91 million, or $1.14, a year earlier, the Benton Harbor, Michigan-based company said today in a statement. Revenue rose 2.5 percent to $4.85 billion.
Sales in Latin America gained 29 percent and European revenue rose 10 percent. Whirlpool promoted washing machines and kitchen appliances overseas as the U.S. housing slump cut demand and Electrolux AB, the second-biggest appliance maker, grabbed market share. International sales may account for almost a third of Whirlpool‘s profit this year, up from a fifth in 2006.
Shares of Whirlpool fell $4 to $112.66 as of 11:09 a.m. in New York Stock Exchange composite trading. They had gained 41 percent this year through yesterday.
Sales Trail Estimate
The average per-share second-quarter profit estimate was $1.87, according to a Bloomberg survey of five analysts. They predicted sales of $4.95 billion.
Sales in Europe increased to $900 million. Excluding the effects of currency translations, sales there rose 3 percent. Operating profit jumped 20 percent to $51 million, helped by sales of new products.
Sales in Latin America gained to $822 million. Excluding currency translations, sales rose 18 percent.
“The economy globally is not as poor as in the U.S.,” said Laura Champine, an analyst with Morgan Keegan Inc. in Memphis, Tennessee. “Whirlpool is the dominant player with the low-cost position worldwide. This was great news in the international business.”
A lower tax rate added 27 cents a share to earnings, Whirlpool said on a conference call. Profit was also reduced by 14 cents because of pension costs and 9 cents due to changes in executive pay, it added.
Whirlpool‘s tax rate in the quarter was 14.5 percent, according to J.P. Morgan Securities Inc. analysts, less than the 25 percent they estimated.
Plant Closings, Firings
Whirlpool has closed plants and is firing at least 4,500 workers, including 730 in this quarter since its acquisition last year of Maytag Corp. Savings from the Whirlpool acquisition will exceed $400 million this year.
“Whirlpool is using better-than-expected savings from the Maytag acquisition to offset higher raw-material costs.” Champine said.
Whirlpool said it has almost completed the integration of Maytag. It plans to completely change Maytag’s product line in the next year with high-end, more profitable products.