Whirlpool reports surprise income gain; raises outlook on shipments

Whirlpool Corp. reported first quarter 2010 gains in North American sales and units shipped and raised the outlook on future shipments.

While corporate success is never a guarantor of job security, the Monday report may provide some sense of security to a Fort Smith metro area nervous about the future of a local Whirlpool operation.

Benton Harbor, Mich.-based Whirlpool reported Monday (April 26) that its first quarter revenue was $4.272 billion, up 19.6% over the same period on 2009. Net income for the global appliance maker and distributor totaled $174 million, up 138.3% compared to the $73 million in the first quarter of 2009. Market watchers estimated per share earnings of $1.33, with Whirlpool blowing the estimate out of the water with per share earnings of $2.13.

“I am not sure how this company could have come up with much better results. These are great,” noted analyst David White at Seeking Alpha.

The company said its North American sales increased 11% to $2.3 billion, with unit shipments up 11%.

“The improvement was primarily the result of cost reduction, productivity initiatives and increased sales volume,” Whirlpool officials noted in the earnings statement.

More importantly for the Fort Smith area, Whirlpool raised its expectation of increased unit shipments in 2010 from a 2%-4% range to a 3%-5% range. Overall, the company raised its per share full-year earnings outlook from the $6.50-$7 range to the $8-$8.50 range.

The future of Whirlpool’s Fort Smith refrigerator-production plant has been a cause for concern following the November 2003 announcement by Whirlpool of a global reorganization plan. The news since November 2003 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 1,300 today.

“We are increasing our outlook to reflect our strong first-quarter results and our ongoing productivity initiatives,” Whirlpool CEO Jeff Fettig said in the earnings statement. “While economic uncertainty remains, Whirlpool Corporation is well positioned to substantially grow earnings from prior-year levels.”

Monday trading on Whirlpool shares (NYSE: WHR) was heavy, with more than three times the average and shares jumping from $102 to more than $117.