Benton Harbor, Mich. — The addition of Maytag to Whirlpool’s ledger sent net sales soaring 33 percent to $4.7 billion for the second quarter, ended June 30. Excluding the March acquisition, Whirlpool’s net sales rose 5 percent.
Net earnings for continuing operations were also up to $100 million, from $96 million year-over-year, including the results and integration costs of Maytag. Factoring in discontinued operations — including the Hoover floor care, Jade commercial majaps, Amana commercial microwave and Dixie Narco vending machine businesses, which Whirlpool intends to sell off — net earnings were $91 million for the quarter.
Operating profits rose to $205 million from $191 million, thanks to strong sales and productivity improvements, which offset acquisition-related expenses and higher commodity prices, the company said. Whirlpool expects material and oil-related costs to continue to accelerate during the second half of the year, which it is countering with price increases, cost controls and productivity initiatives.
In a statement, chairman/CEO Jeff Fettig said he was pleased with the second-quarter results, the rapid integration of Maytag’s operations and the strong response by the trade and consumers to new product introductions. Recent product launches include a smaller Duet laundry pair called Sport, a stainless-steel Pro laundry line by KitchenAid, and a French door refrigerator with front-door ice and water dispenser under the Amana brand.
In North America, sales grew 50 percent to $3.3 billion including Maytag, and 5 percent excluding the acquisition. Operating profit was $192 million, and factory shipments of core categories exceeded industry levels, which were up slightly, the company said. Whirlpool expects full-year industry shipments to increase by 1 percent to 2 percent over 2005 factory sales.
“We continue to make excellent progress toward the integration of our Maytag business and remain confident in our ability to realize the value creating opportunities of this combination,” Fettig said. “Despite somewhat softer near-term demand, the underlying industry fundamentals remain positive.”
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