Whirlpool Corp. sees decline in quarterly net income (Updated)

Benton Harbor, Mich.-based Whirlpool Corp. had third-quarter net income of $93 million,  down 44.6% compared to the same quarter of 2008. However, the company took at third-quarter accounting hit of $43 million to settle a case with the Brazilian competition commission.

The company, which has a large refrigerator and icemaker production plant in Fort Smith, reported Friday (Oct. 23) that its cost reduction efforts helped the company boost its operating profit to $189 million in the third quarter, up 6.7% over the 2008 quarter.

"Our strong operating performance improvement in the quarter highlights our successful cost reduction efforts, the strength of our global operating platform, our commitment to product innovation and strong consumer brands," Jeff M. Fettig, chairman and CEO of Whirlpool Corp., said in a statement.

Third quarter total sales for the company was $4.497 billion, down 8.2% from the 2008 quarter.

Also, the company’s third quarter earnings per share figure of $1.15 beat the analyst’s consensus estimate of 77 cents per share. The markets liked the report, boosting the share price in early morning trading to well above $75 per share, up more than 3%. Shares of Whirlpool (NYSE: WHR) would close Friday at $77.13, up $3.59.

For the first nine months of 2009, Whirlpool has posted net income of $252 million, down 36.3% from the same period in 2008. Total sales for the first nine months of 2009 totaled $12.235 billion, down 16.1% from the 2008 period.

Whirlpool officials reported that the North American division saw third-quarter sales of $2.5 billion, a 9% dip from the 2008 period. The company cited “cost reduction and productivity initiatives” as the reason the North American division posted a third quarter operating profit of $140 million, up 89.1% over the 2008 third quarter. The company also reported that U.S. industry unit shipments of major appliances fell 6% during the third quarter.

“Based on the current economic outlook, the company expects full-year 2009 U.S. industry unit shipments to decline approximately 10 percent compared with its prior expectation of a decline between 10 percent and 12 percent,” the company noted in its earnings statement.

Whirlpool confirmed Oct. 16 that a recall of up to 150 workers to its Fort Smith plant is possible. The future of Whirlpool’s Fort Smith plant has been a cause for concern by area business and civic leaders since November 2003 when the company announced a major global reorganization plan. The news in the past 3.5 years has been troubling, with Whirlpool announcing numerous production cuts and layoffs that has seen employment in Fort Smith drop from about 4,600 in early 2006 to around 1,050 today.

Whirlpool Corp. is a global manufacturer and marketer of major home appliances, with annual sales of approximately $19 billion in 2008, 70,000 employees, and 67 manufacturing and technology research centers around the world.