BENTON HARBOR, Mich. — Whirlpool Corp. reported a second-quarter profit drop of 33%, but that was still better than analyst expectations. The company also boosted the low end of its full-year profit guidance above analysts’ estimates.
Whirlpool contributed the relatively higher-than-expected profit to lowered working capital, improved pricing and product mix, and additional cost controls.
“Consumer demand for appliances was significantly lower in the second quarter, which negatively impacted our global unit volumes,” Jeff M. Fettig, chairman and chief executive officer, said in a 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.”
Whirlpool earned $78 million, or $1.04 per share, for the period ended June 30, down from $117 million, or $1.53 per share, from the same period last year. Analysts surveyed by Thomson Reuters had predicted a profit of 51 cents per share.
Revenue dropped 18% to $4.17 billion from $5.08 billion, missing expectations for sales of $4.2 billion. Revenue at the company’s North American division fell 17% to $2.4 billion, while sales for the European segment dropped 25% to $786 million and the Latin American division fell 16% to $844 million. Whirlpool Asia was the only division in the positive with a 3% increase in sales.
Whirlpool expects earnings of $3.50 to $4 per share, an increase from the previous guidance for profit of $3 to $4 per share.
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