BENTON HARBOR, Mich. (AP) — Whirlpool Corp.’s cost-cutting and big sales gains in Asia and Latin America helped it more than double its fourth-quarter profit, the company said Tuesday.
The world’s largest home appliance maker also posted a 2010 outlook above expectations and said it is starting to see signs of business improving in North America.
The sales increases are encouraging — particularly in North America — as it shows demand is rising for the company’s big-ticket items in the U.S. after more than a year of sales that were hammered by a weak housing market and tight credit.
Whirlpool, whose other brands include Maytag and Kitchenaid, earned $95 million, or $1.24 per share, for the period ended Dec. 31. Excluding a legal expense, profit was $1.64 per share, which beat the $1.32 per-share forecast of analysts surveyed by Thomson Reuters. These estimates usually exclude one-time items.
Revenue rose 12.7 percent to $4.86 billion, topping Wall Street’s $4.44 billion. Removing foreign currency fluctuations, sales grew about 5 percent for the quarter.
In North America, sales climbed 4 percent to $2.6 billion, which was much better than the previous quarter when revenue was down 9 percent. U.S. industry unit shipments rose 6 percent, providing hope that customers are starting to make more purchases.
Latin America revenue surged 52 percent to $1.2 billion, while Asian sales increased 34 percent to $188 million.
Full-year earnings slipped 22 percent to $328 million, or $4.34 per share, compared with $418 million, or $5.50 per share, in the previous year. While the performance was lower than the prior year, it was still above Whirlpool’s guidance for a profit of about $4.25 per share.
Annual sales dropped 10 percent to $17.1 billion from $18.91 billion. Taking out foreign currency fluctuations, revenue fell about 6 percent.
For 2010, the Benton Harbor, Mich., company expects earnings of $6.50 to $7 per share, above estimates of $6.45 per share. Its U.S. sales could get a boost from a federal tax-rebate program for purchases of energy-efficient appliance, which has yet to begin in most states.
Business
<img src=" http://www.joplinglobeonline.com/images/zope/tuesday.gif" border=0> Whirlpool 4th-quarter profit more than doubles
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