Whirlpool Q2 N.A. Revenue Rises 5.2%, Profit Off

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Benton Harbor, Mich. — The good news for major appliances maker Whirlpool was record second-quarter North American revenue of $2.21 billion, a 5.2 percent increase over the $2.10 billion reported in the same three months last year.

The company said its U.S. majap shipments were essentially equal to last year, as strong Whirlpool branded performance was offset by lower OEM shipments. Total U.S. industry majap shipments rose 2 percent, while sales were positively impacted by price increases and a favorable product mix.

The bad news for Whirlpool was a profit drain traced to high steel and oil costs during the three months, ended June. 30. North American operating profit dropped 12.4 percent to $187 million, down from the $214 million recorded a year ago. The company also registered lower production volumes to reduce inventory levels.

Consolidated second-quarter revenue climbed 9 percent, hitting $3.56 billion, up from $3.26 billion year-on-year. Excluding currency translations, net sales increased by about 5 percent.

Consolidated operating profit slipped 8.5 percent, down to $191 million from last year’s $209 million, while net earnings dipped 9.2 percent, coming in at $96 million, compared with $106 million in 2004.

Although overall pricing and mix was in line with expectations and the company fulfilled strong productivity and cost controls, Whirlpool said its quarterly margin was impacted by $180 million in higher materials and oil-related costs. Other factors influencing lower second-quarter results were unfavorable currency and higher restructuring expense, compared with last year.

In the first half, Whirlpool sales jumped 8 percent, reaching $6.76 billion, compared with $6.27 billion in the same period last year.

Operating profit for the first six months dipped to $371 million from a year-earlier $412 million, while net earnings came in at $182 million in the first half, down from last year’s $207 million.

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