Benton Harbor,
Mich. – Higher costs, lower demand and a reduction in tax credits led to a 53 percent
decline in Whirlpool’s first-quarter profits.
Net earnings
totaled $94 million on sales of $4.3 billion, a 1 percent decline, for the
three months, ended March 31.
Excluding the impact
of lower tax credits and other one-time items, operating profit rose 42 percent
to $232 million.
In North America
sales slipped 1 percent to $2.2 billion, but operating profit rose 155 percent
to $151 million thanks to price increases, plant closures, improved
efficiencies and increased sales of higher margin products.
“The first quarter
was a strong start to the year as we benefited from our margin expansion
efforts and continued innovation investments,” said chairman/CEO Jeff Fettig,
citing the company’s cost and capacity-reduction initiatives and cost-based
price hikes.
During the quarter
Whirlpool North America launched:
-
a
Whirlpool-branded, 30-inch French-door bottom-mount refrigerator that fits into
a standard 18-cubic-foot top-mount refrigerator opening;
-
Maytag ranges that
clean using water and low heat, avoiding the extreme temperatures and odor of
traditional self-clean ovens;
-
a KitchenAid
30-inch French-door bottom mount that extends the freshness of commonly
purchased produce by up to 25 percent by absorbing the ethylene gas naturally
emitted by some fruits and vegetables; and
-
a Jenn-Air
dishwasher series with alternating wash action, three-stage filtration, a
variable-speed motor and pressurized wash arms for effective but quiet and
energy-efficient cleaning.
Looking ahead, the
company is projecting full-year U.S. majap industry unit shipments to be at the
low end of a range of flat to 3 percent growth based on the current economic
outlook.
