Whirlpool first-quarter profit beats forecasts

Home appliance maker Whirlpool Corporation beat forecasts to announce a quarterly profit increase of 37 per cent today.

Home appliance maker Whirlpool Corporation beat forecasts to announce a quarterly profit increase of 37 per cent today.

Results do not include Maytag, which was acquired in late March. Whirlpool said it would update its profit outlook in May, when it provides details on the acquisition.

First-quarter net earnings increased to $118 million, or $1.70 a share, from $86 million, or $1.26 a share, a year earlier.

Whirlpool results have exceeded analysts' expectations for the past few quarters as the company accelerated product launches, cut global overhead and raised prices to cope with steel and energy costs.

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First-quarter profit growth was Whirlpool's strongest in more than two years. Sales rose 10 per cent to $3.5 billion.

In North America, Whirlpool's largest market, sales were up 12 per cent. Sales rose 20 percent in Latin America and 2 percent in Asia, but fell 3 percent in Europe, largely due to currency translations.

Operating profit rose in all regions, reflecting cost controls and increased sales of upscale products.

The Michigan company completed the $1.7 billion cash-and-stock acquisition of smaller rival Maytag after an extensive review by the US Department of Justice. It is now deciding how to position the Maytag brands.