WASHINGTON (dpa-AFX) - Whirlpool Corp. (WHR) Tuesday reported increased profit and revenue for the first quarter that missed estimates, as the consumer goods giant was hit by adverse currency and weak demand in Brazil. Further, the company reduced its earnings forecast for the year.
Net earnings increased to $191 million or $2.38 per share from $160 million or $2.02 per share in the previous year.
Ongoing business earnings per share were $2.14, while it totaled $2.20 in the same prior-year period. On average, six analysts polled by Thomson Reuters expected earnings per share of $2.34 for the quarter. Analysts' estimates typically exclude special items.
According to the company, the benefit of cost and capacity-reduction initiatives, ongoing cost productivity and benefits from the acquisition integration activities were offset by adverse currency and a weakened demand environment in Brazil.
Net sales rose 11 percent to a first-quarter record of $4.85 billion from $4.4 billion in the same period last year. Analysts expected revenues of $5.06 billion. Excluding the impact of foreign currency and Brazilian tax credits, sales increased over 23 percent, primarily due to acquisitions.
Sales rose slightly in Whirlpool North America to $2.3 billion, and rose over 2 percent when currency impact is excluded.
In the Europe, Middle East and Africa region, net sales rose to $1.3 billion from $0.7 billion in the same prior-year period.
Whirlpool Latin America's sales dipped to $0.9 billion from $1.2 billion. Excluding the impact of currency and tax credits related to Brazil, sales decreased around 11 percent.
In Asia, sales jumped to $378 million from $166 million in the previous year.
Jeff Fettig, CEO, said, 'Our integration plans in Europe and China remain on track and we have taken actions to overcome recent currency movements. We continue to invest in our leading brand portfolio and innovative new products while adjusting to a continuing volatile global economy.'
Further, Whirlpool adjusted its full-year 2015 guidance to reflect the impact of unfavorable currency and a weakened demand environment in Brazil.
The company now expects full-year net earnings per share available to Whirlpool of $9.00 to $10.00, compared to the previous forecast of $10.75 - $11.75.
Full-year ongoing business earnings per share are estimated in the range of $12.00 to $13.00, while the previous projection was for $14.00 - $15.00.
The company expects to deliver record sales and ongoing earnings for the year.
Analysts look for full-year earnings of $13.91 per share on revenues of $23.11 billion.
Whirlpool shares closed at $197.83 on Monday, up 0.7 percent from the previous close.
Copyright RTT News/dpa-AFX