WHR Whirlpool Corp

By Micah Maidenberg 

Price increases and efforts to reduce operating costs helped Whirlpool Corp. lift profits in the latest quarter, despite weaker demand in some markets.

The manufacturer of washing machines and other home appliances on Monday reported a first-quarter profit of $471 million, or $7.31 a share, up from $94 million, or $1.30 a share, the year earlier. Profit for the quarter was also helped by a favorable tax judgment in Brazil and restructuring costs falling by 82% from a year earlier.

Excluding restructuring costs and other one-time items, the company reported earnings of $3.11 a share, beating expectations of $2.86 a share, according to FactSet.

Shares of Whirlpool rose almost 6% in after-hours trading Monday. The stock has jumped 30% so far this year.

The company reported first-quarter sales of $4.76 billion, down from $4.91 billion a year earlier. Analysts expected $4.83 billion, according to FactSet. Excluding the impact of currency fluctuations, sales rose 1%.

Whirlpool said Monday sales fell in international markets, hurt in some cases by currency effects. Revenue fell 9% in the region that includes Europe and fell nearly 3% in Latin America.

In North America, Whirlpool's biggest market, sales were flat at $2.5 billion, the company said.

The company said a measurement of its profit margin before interest and taxes hit 6.3% in the first quarter, up from 6% a year ago.

The Benton Harbor, Mich.-based company now expects to deliver earnings this year of between $14.05 a share and $15.05 a share, up from its previous forecast between $12.75 and $13.75 a share. The company maintained its outlook on profit excluding one-time items.

Last year, Whirlpool raised its prices to offset rising raw material and tariff costs. In addition, the administration imposed tariffs on imported steel and aluminum, pushing the company's expenses higher. The Trump administration has also implemented tariffs on imported washing machines, a move that Whirlpool backed.

A study released earlier Monday found that the Trump administration's tariffs on imported washing machines resulted in higher prices for consumers, costing buyers about $1.5 billion annually. The study also found that prices for dryers also rose.

Write to Micah Maidenberg at micah.maidenberg@wsj.com

(END) Dow Jones Newswires

April 22, 2019 17:19 ET (21:19 GMT)

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