Whirlpool Q2 Profits Rise 163%
By Alan Wolf On Aug 2 2010 - 3:01am
BENTON HARBOR, MICH. —
Whirlpool’s second-quarter profits
soared 163 percent to $205 million on
sales of $4.5 billion, up 6 percent year
The company attributed the strong
results to tighter cost controls, increased
production efficiencies and
greater global unit volume growth,
which was partially off set by rising fuel
and raw-materials costs and a larger
mix of lower-priced products.
“We made strong progress towards
our long-term value creation
goals during the second quarter,” said
Whirlpool chairman/CEO Jeff Fettig.
“Global unit volume growth combined
with our ongoing productivity
improvements enabled us to expand
our operating margins and accelerate
profi table growth.”
In North America, sales for the threemonth
period ended June 30 rose 4 percent
to $2.5 billion, and operating profit
— which included a $33 million benefits
concession but excluded the favorable impact
of currency fluctuations — increased
nearly 67 percent to $200 million.
Whirlpool said the improvement was
primarily the result of cost reduction,
productivity initiatives and increased
sales volume, partially off set by lower
year-over-year product price/mix and
higher material and oil-related costs.
Whirlpool’s unit volume increased 7
percent in the U.S. during the second
quarter, but trailed the industry average
of 12 percent for the period.
Looking ahead, the company raised
its projection for full-year U.S. industry
unit growth to 5 percent, from a previous
range of 3 percent to 5 percent.
Nevertheless, Fettig described the
global economic environment as “fragile”
and “volatile,” but said the company
is positioned “to effectively manage
through these challenges” and deliver a
record year of earnings per share.
During the quarter the company
launched the following products in the
North American market:
• the Maytag Bravos X, a high-efficiency,
top-load laundry pair with
• a Whirlpool side-by-side refrigerator
with MicroEtch spill control
shelves that eliminate shelf frames, creating
wall-to-wall storage with 25 percent
more usable shelf space than other
Whirlpool side-by-sides, which can help
prevent leaks and make cleaning easier;
• the Maytag Performance Series
2000, a front-load laundry pair; and
• the Amana Green Tea refrigerator in
a metallic green color with leaf etching.