Whirlpool earnings dip 30% but beat expectations (Updated)

Whirlpool Corp. reported second quarter net income of $78 million, down more than 30% from the 2008 second quarter, but ahead of analyst expectations.

The average earnings per share estimate of analysts was 51 cents, with Whirlpool reporting in its Wednesday (July 22) earnings per share of $1.04.

However, the markets didn’t react well to the report, with Whirlpool shares (NYSE: WHR) falling more than 8.3% in early morning trading. Updated info: The shares closed the day at $50.75, down $5.59, or more than 9.9%.

Second-quarter sales in Whirlpool’s North American segment were $2.4 billion, down 17% from the same quarter in 2008. The company said its shipments of major appliances were down 14% compared to the 2008 period. Based on current economic conditions, Whirlpool expects full-year 2009 U.S. industry unit shipments to decline between 10% and 12%.

Updated info: Whirlpool announced in the earnings statement it launched two new products during the quarter. The Whirlpool Latitude refrigerator offers 10% more space in the refrigeration compartment compared to similar size side-by-side models, according to Whirlpool. Also, the company launched Jenn-Air brand high-performance built-in refrigerators that includes a 36-inch bottom-freezer, side-by-side door model.

Jody Lau, a communications manager for Whirlpool, said some of the new Latitude and Jenn-Air are produced in Fort Smith.

The downturn in product sales is noted by the company as a key reason Whirlpool has reduced employment at its Fort Smith plant from about 4,500 in early 2006 to about 1,350 today.

"Consumer demand for appliances was significantly lower in the second quarter, which negatively impacted our global unit volumes," Jeff M. Fettig, Whirlpool chairman and CEO, said in the earnings statement. "Late last year, we took actions to restructure our business, aligning our capacity and resources to lower demand levels. Our results reflect these actions, and we will continue to execute our plans to address this volatile global economic environment."

For the first six months of 2009, the Benton Harbor, Mich.-based company posted sales of $7.73 billion, down 20.1% from the $9.69 billion in the first half of 2008. Net income for the first half of 2009 was $146 million, down almost 31% from the $211 million during the same period in 2008.