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 Whirlpool, which makes its namesake brand along with Maytag, KitchenAid and Jenn-Air products, maintained its full-year earnings
outlook on Wednesday.
The company's stock gained 48 cents to $85 in premarket trading.
Earnings fell to $79 million, or $1.02 per share, for the three
months ended Sept. 30. A year earlier, net income was $87 million,
or $1.15 per share.
Whirlpool's net income was dragged down by $1.20 per share because
of the plea deals. The U.S. Justice Department said in September
that Whirlpool, the world's biggest appliance maker, and Japanese
electronics giant Panasonic Corp. conspired to fix the prices of
refrigerant compressors. A subsidiary of Whirlpool and Panasonic
agreed to plead guilty and pay more than $140 million in criminal
fines for their roles in the scheme.
Adjusted earnings were $2.22 per share. That beat the $1.76 per
share that analysts polled by Thomson Reuters forecast. These
estimates usually take out one-time charges.
Revenue was nearly flat at $4.52 billion even as sales fell in North
America and Europe. The Benton Harbor, Mich., company benefited from
sales increases in Latin America and Asia. The results surpassed Wall Street's expectations for revenue of
$4.49 billion.
"As expected, we faced a challenging environment during the quarter
which resulted in a significant slowing in sales growth compared to
the first half of the year," Chairman and CEO Jeff Fettig said in a
statement.
U.S. shipments of major appliances declined 3 percent in the
quarter. Whirlpool lowered its forecast for the year, saying it now
expects U.S. shipments to climb about 3 percent. It previously
predicted a 5 percent increase.
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U.S. demand for Whirlpool's washers, dryers and other appliances was
hurt by the recession but began to pick up earlier in the year
because of federal rebates for energy-efficient appliances. The
federal home buyer tax credit of up to $8,000 that helped spur home
sales in the first half of the year also may have helped appliance
makers, as people were more likely to buy appliances when they were
moving into a new house.
With the tax credit expired, Whirlpool continues to face challenges
with a soft housing market and high unemployment levels.
"Whether demand has slowed as a result of Mortgage-Gate (allegations
that mortgage lenders cut corners on foreclosures), the lag effect
associated with soft mid-year housing data, or less impetus on the
part of the consumer to buy big-ticket appliances absent a tax
credit, Whirlpool looks to be in a downdraft in the U.S.," Brian
Sozzi of Wall Street Strategies Inc. wrote in a client note.
Whirlpool said its quarterly results were hurt by increased material
costs and lower selling prices, but somewhat offset that by cutting
costs and improving productivity.
Whirlpool still anticipates 2010 adjusted earnings between $9.56 and
$10.06 per share.
Whirlpool has 67 manufacturing plants and technology research
centers globally.
[Associated
Press]
Copyright 2010 The Associated Press. All rights reserved. This
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