Whirlpool 4Q profit rises on lower costs, taxes

[February 02, 2011]  BENTON HARBOR, Mich. (AP) -- Whirlpool Corp., the world's biggest appliance maker, said Wednesday its fourth-quarter profit rose 80 percent, mainly on lower costs and an income tax benefit.

Sales fell in both North America and Europe, but strength in Latin America and Asia helped offset those weaknesses.

For the quarter, the maker of Maytag and KitchenAid brands, earned $171 million, or $2.19 per share, up from $95 million, or $1.24 per share, a year earlier. Revenue rose 4 percent to $5.04 billion from $4.86 billion.

Analysts polled by FactSet expected $2.26 in profit on $4.87 billion in revenue.

In North America, sales fell 1 percent to $2.6 billion because of lower production volume and higher material costs.

Sales in Europe fell 4 percent to $922 million, partly on foreign currency exchange differences. But, sales in Latin America rose 18 percent to $1.4 billion on tax credits and cost reductions, while sales in Asia rose 9 percent to $204 million.

While expenses mainly offset sales gains, the company's profit benefited from a $46 million tax benefit.

For the full year, the company earned $619 million, or $7.97 per share, up from $328 million, or $4.34 per share, in 2009. Revenue rose to $18.37 billion from $17.1 billion.

Looking ahead, the company expects 2011 profit between $12 and $13, including $4 per share in U.S. energy tax credits. Analysts expect $9.15 per share in profit, excluding items.

Jeff Fettig, chairman and CEO, says Whirlpool expects "positive but uneven demand" around the world in 2011, with costs increasing because of higher raw material prices.

[Associated Press]

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