White goods giant Whirlpool Corp. (WHR) Wednesday reported a surge in profit for the first quarter, benefiting from certain U.S. energy tax credits. Adjusted earnings topped Wall Street estimates, while revenue came short of view. The firm backed its full year earnings outlook.
Jeff Fettig, CEO, said, ''The first-quarter results were in line with our expectations and continue to reflect our actions to expand margins, marking the fifth consecutive quarter of year-over-year operating margin improvement."
The company sees moderately higher revenue growth due to continued strength in U.S. housing and improving demand trends internationally. ''...we are on track to deliver our operating profit margin, earnings and free cash flow guidance for the year," Fettig added.
Whirlpool continues to expect full-year earnings per share of $9.80 to $10.30. Excluding restructuring charges, Brazilian tax credits and U.S. energy tax credits, full-year adjusted earnings per share are still expected in the range of $9.25 to $9.75. Analysts expect full year earnings of $9.64.
Net earnings available to Whirlpool surged to $252 million from $92 million in the previous year. Earnings per share climbed to $3.12 from $1.17. The latest results include $1.04 per share of benefits from U.S. energy tax credits.
On an adjusted basis, earnings per share were $1.97, while it stood at $1.41 in the prior year. On average, 5 analysts polled by Thomson Reuters expected earnings of $1.93 per share for the quarter. Analysts' estimates typically exclude special items.
Net sales dropped to $4.25 billion from $4.35 billion. Analysts expected revenues of $4.39 billion. Excluding the impact of foreign currency and Brazilian tax credits, sales were flat with the prior year.
Whirlpool North America sales were nearly flat at $2.2 billion. The quarter benefited from continued favorable product price and mix as well as cost and capacity-reduction actions. The division continues to expect 2013 U.S. industry unit shipments to increase 2 to 3 percent.
Whirlpool Latin America sales fell nearly 8 percent to $1.2 billion. Excluding currency translation and Brazilian tax credits, sales rose 2 percent on improved product price and mix.
Sales slid 3 percent in Whirlpool Europe, Middle East and Africa to $668 million. Whirlpool Asia sales fell 7 percent to $187 million. Excluding currency Asia sales were down 4 percent.
WHR closed at $122 on Tuesday.
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