Whirlpool profit beats on price hikes, shares jump
(Adds share movement, segment details)
April 22 (Reuters) - Appliances maker Whirlpool Corp
beat analysts' estimates for quarterly profit on Monday, fueled
by price increases to counter higher raw material and freight
Shares of the company rose about 8 percent after the bell,
adding to the 32 percent gain since the beginning of the year.
Whirlpool is facing higher-than-expected raw material costs
as the U.S.-China trade dispute has made imported steel and
aluminum expensive, with the company looking to cushion the hit
by raising prices and reining in costs.
"Successful execution of price increases and sustained focus
on cost discipline drove very positive results in the first
quarter, and provide confidence in our ability to deliver our
full-year financial goals," Chief Executive Officer Marc Bitzer
said in a statement.
The company also hiked its quarterly dividend by 4.3 percent
and reaffirmed its full-year profit forecast of between $14 and
$15 per share.
Net earnings available to Whirlpool rose to $471 million, or
$7.31 per share, in the first quarter ended March 31 from $94
million, or $1.30 per share, a year earlier.
The quarter included a $127 million benefit from a Brazilian
indirect tax credit.
Excluding items, the company earned $3.11 per share, blowing
past analysts' average estimate of $2.86, according to IBES data
Net sales fell 3.1 percent to $4.76 billion, missing the
average estimate of $4.83 billion.
(Reporting by Sanjana Shivdas, Divya R and Arjun Panchadar in
Bengaluru; Editing by Sriraj Kalluvila)
First Published: 2019-04-22 22:21:15
Updated 2019-04-22 22:47:34
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