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Earnings Roundup / Whirlpool

Net falls 77% on lower demand

February 10, 2009|Times Wire Reports

With consumer demand dropping, home appliance maker Whirlpool Corp. said its fourth-quarter profit tumbled 77%, squeezed as well by a restructuring charge, recall expenses and the stronger dollar.

The company said earnings for the three months ended Dec. 31 slid to $44 million, or 60 cents a share, compared with $187 million, or $2.38, a year earlier.

Results included a $77-million restructuring charge and a $32-million product-recall expense.

Revenue fell 19% to $4.32 billion, reflecting weakness across all markets. Sales in North America slid 18% to $2.5 billion, while revenue in Latin America dropped 26%. Revenue also slowed in Europe and Asia.

A stronger dollar also hurt Whirlpool by making the company's products more expensive to overseas customers.

Analysts surveyed by Thomson Reuters forecast earnings, on average, of 78 cents a share on sales of $4.88 billion.

Benton Harbor, Mich.-based Whirlpool, whose brands include Maytag and KitchenAid, predicted 2009 profit of $3 to $4 a share.

Analysts expected profit of $4.12 a share on revenue of $18.46 billion.

Whirlpool shares rose 74 cents to $37.13.

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