Whirlpool Profit Rises, Helped by Higher Prices, Cutting Costs
April 22 2019 - 5:34PM
Dow Jones News
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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