Whirlpool Corp. (WHR) reported Wednesday a 20 percent increase in profit for its fourth quarter that reflected higher energy tax credits and lower restructuring expenses. Adjusted earnings declined as sales were hurt by unfavorable currency and lower industry demand, despite improving price/mix. The home appliances maker also issued fiscal 2012 earnings view, which is higher than analysts' estimates.
Fourth-quarter net earnings totaled $205 million or $2.62 per share, compared with last year's $171 million or $2.19 per share.
The latest quarter results were benefited by supplier quality recovery gain of $0.49 per share, benefit plan curtailment gain of $0.28 per share, energy tax credits of $1.41 per share and Brazilian tax credits of $0.76 per share, partly offset by restructuring expense of $0.64 per share.
The prior year's results reflected energy tax credits of $0.78 per share and Brazilian tax credits of $1.04 per share among others, partly offset by restructuring expense of $0.14 per share.
Adjusted earnings, which excluded these items, declined to $0.32 per share from $0.43 per share in the prior year.
On average, 4 analysts polled by Thomson Reuters expected earnings of $1.96 per share for the quarter. Analysts' estimates typically exclude one-time items.
Quarterly sales dropped to $4.9 billion from $5 billion in the previous year, while analysts projected revenues of $4.98 billion.
"In particular, the focused actions yielded a substantial improvement in the profitability of the North America region partially offset by weak economic conditions in Europe. Higher raw material costs, lower production to adjust inventories to weak global industry demand, unfavorable currency and lower monetization of Brazilian tax credits adversely impacted results during the quarter," the company said in its statement.
Segment-wise, North American sales edged up 1 percent, despite a 3 percent drop in unit shipments.
In Europe, Middle East and Africa as well as Latin America, sales declined due to lower unit shipments and currency impacts. Asia sales also declined, but with negative currency impact as unit shipments remained flat. Excluding the impact of currency, sales increased approximately 4 percent.
In its preceding third quarter, Whirlpool had reported lower-than-expected earnings and revenues, reflecting weaker global demand and higher raw material and oil-related costs. Anticipating continued weakness, the company had announced various cost cutting measures, including 5,000 job cuts.
For fiscal 2011, adjusted net earnings plunged to $2.05 per share from last year's $4.47 per share, while sales rose 2 percent to $18.7 billion.
Looking ahead for fiscal 2012, Whirlpool expects earnings per share of $5.00 to $5.50 and adjusted earnings per share of $6.50 to $7.00. Analysts project earnings of $5.85 per share for the full year 2012.
Chairman and Chief Executive Jeff Fettig said, "As we enter 2012, we are executing strong actions to continue to improve operating margins through our cost and capacity reduction initiatives, ongoing productivity programs and previously announced price increases."
WHR closed Tuesday's trading at $54.32, up $0.57 or 1.06 percent. In pre-market activity, shares are currently trading at $57.60, up $3.28 or 6.04 percent.
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