Whirlpool nearly doubles profit despite flat sales
Whirlpool has revealed “record” results in its quarterly report, despite stagnant sales.
Overall net sales for the second quarter of 2016 remained flat at around $5.2 billion (£4bn) compared with the same period in 2015.
However, net earnings climbed from $177 million to $320m in the three months to June 30, and increased from $368m to $470m in the first half of 2016. Whirlpool said this was thanks to unit volume growth, acquisition synergies and cost-reduction initiatives.
In the Europe, Middle East and Africa (EMEA) region, Whirlpool reported a 2.9 per cent year-on-year dip in sales, falling from $1.33bn to $1.29bn in Q2 of 2016.
It also saw sales fall to $2.47bn in the first half of 2016, compared with $2.6bn in 2015. Whirlpool attributed the decrease to an “unfavourable impact from foreign currency”.
Whirlpool chairman and chief executive Jeff Fettig (pictured) said: “We delivered another quarter of record earnings and margin expansion, while overcoming challenges in several key countries through focused execution of our plans.
“Our leading portfolio of brands, innovative new products and strong ongoing cost productivity programmes have enabled us to continue creating significant value for our shareholders.”
In the report, Whirlpool stated that it expects to generate cash of $1.4 to $1.55bn from operating activities for the whole of 2016.
“As we have demonstrated over the past five years, we continue to rapidly respond to a volatile global environment and deliver record results by growing revenue, expanding margins and generating cash,” said Mr Fettig. “We remain confident and committed to our value-creation strategy and expect to continue delivering record financial results, a balanced approach to capital allocation and strong investments in our business.”