By Lisa Johnston
New products on display at the American International Toy Fair, held in N
Benton Harbor, Mich. -- Whirlpool posted a strong gain in profit in the second quarter, reporting a net of $198 million, up from $113 million in the year-ago period.
Sales in the quarter for the company's Whirlpool, Maytag and KitchenAid appliances were $4.7 billion compared with the $4.5 billion reported during the same period last year. Excluding the impact of both foreign currency and Brazilian tax credits, sales increased almost 6 percent, the company said.
As a result, the company raised its full-year outlook, citing sales gains in all of its markets, including large gains in Europe and North America. Revenues in the U.S. were up 5.1 percent.
Whirlpool's focus on margin improvement was reflected in operating profit in Europe and Latin America, which jumped 77 percent and 31 percent, respectively.
"Sales increased in every region of the world as we continued to expand margins," said Jeff Fettig, chairman and CEO. "Our financial results reflect increased demand for our innovative products and continued benefits from our margin expansion actions."
Second-quarter GAAP operating profit totaled $328 million, compared with $194 million in the prior year. On an adjusted basis, operating profit totaled $335 million, or 7 percent of sales, compared with $222 million, approximately 5 percent of sales, in the prior year's Q2.
Higher global volume, ongoing cost productivity and the benefit of cost and capacity-reduction initiatives positively impacted results during the quarter, Whirlpool said.
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