WASHINGTON (dpa-AFX) - Home appliances maker Whirlpool Corp. (WHR) on Monday slashed its earnings guidance for the full-year 2014, citing the additional acquisition-related costs. The company also provided initial earnings forecast for the full-year 2015, in line with Street view.
The company was providing the outlook update two days ahead of its Investor Day meeting on Wednesday.
The Benton Harbor, Michigan-based world's largest home appliance company said it now expects net earnings for fiscal 2014 in a range of $8.00 to $8.20 per share and ongoing business earnings in the range of $10.90 to $11.10 per share.
Previously, the company projected net earnings of $9.40 to $9.90 per share and ongoing business earnings per share of $11.50 to $12.00 per share for fiscal 2014.
On average, nine analysts polled by Thomson Reuters currently expect the company to report earnings of $11.65 per share for the full-year 2014. Analysts' estimates typically exclude special items.
The ongoing business earnings guidance primarily reflects $0.87 per share of incremental acquisition expenses related to the planned accelerated integration of the recently acquired Italy's Indesit Co., S.p.A and majority interest in Chinese home-appliances maker Hefei Rongshida Sanyo Electric Co., Ltd.
Further, the company projects $0.87 per share in additional impact of unfavorable currency and other costs in North America related to its new laundry product launches.
'Both Indesit and Hefei are transformative acquisitions which will enable sustainable growth with a balanced and leading geographic portfolio. By accelerating these integration activities, we expect to increase revenues, drive synergies and grow earnings while continuing to deliver innovative new products to consumers around the globe,' Chairman and CEO Jeff Fettig said in a statement.
Looking further ahead to fiscal 2015, Whirlpool currently anticipates net earnings in a range of $10.75 to $11.75 per share and ongoing business earnings in the range of $14.00 to $15.00 per share. Street is currently looking for full-year 2015 earnings of $14.50 per share.
The 2015 ongoing business earnings guidance primarily exclude about $2.85 per share of acquisition related integration and restructuring costs.
'Given our acquisitions and the opportunities that we have around the world, we have created an outstanding platform with multiple levers for profitable growth. We are committed to increasing shareholder value and plan to share details of our vision and long-term growth strategy at our Investor Day this week,' Fettig added.
WHR closed Monday's regular trading session at $183.36, up $2.72 or 1.51% on a volume of 1.21 million shares. The stock gained a further $2.52 or 1.37% in after-hours trading.
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