Tags: Whirlpool Corporation | WHR | manufacturing | stock | housing

Whirlpool Makes Money Despite Housing

By    |   Wednesday, 15 Jun 2011 03:46 PM

Everyone knows the housing market is not exactly thriving, but what about those companies that are bound to it? You can't build a new home without filling it up with appliances, and the Whirlpool Corporation (WHR) supplies both new and existing homeowners with ovens, washers and driers, and a host of other necessary labor-savers. And business is going well for Whirlpool, despite a sluggish U.S. economy, higher fuel prices, and input costs.

Net sales during the first quarter of 2011 were up 3 percent at $4.4 billion. Net earnings were also up 3 percent at $169 million. Operating profit was down 5 percent at $228 million.

Results weren't exactly stellar, but they did exceed some analysts' expectations. "Our first quarter results reflect our ongoing cost reduction efforts and continued innovation investments, which helped to mitigate significant material cost inflation," says Chairman and CEO Jeff M. Fettig.

Whirlpool feels its numbers are strong and recently announced a 16 percent dividend increase. Analysts agree that the company is looking solid.

Looking for a rebound

"The near-term operating outlook for global appliance demand remains relatively positive despite lingering difficulties in the U.S. housing market, continuing challenges in Europe, and higher material and energy costs," Fitch Ratings said in a recent statement announcing it had assigned a BBB rating to a recent Whirlpool $250 million debt issue.

"In the U.S., Fitch currently projects housing starts will increase 10.2 percent, while existing home sales are expected to remain flat during the year. Home improvement spending in the U.S. is projected to grow 4 percent in 2011,” Fitch analysts said. “Internationally, appliance demand in Brazil and India is expected to remain at strong levels as their economies continue to show solid growth."


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Everyone knows the housing market is not exactly thriving, but what about those companies that are bound to it? You can't build a new home without filling it up with appliances, and the Whirlpool Corporation (WHR) supplies both new and existing homeowners with ovens,...
Whirlpool Corporation,WHR,manufacturing,stock,housing
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2011-46-15
Wednesday, 15 Jun 2011 03:46 PM
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