By Alan Wolf, YSN
Whirlpool said a greater mix of higher-margin products, increased cost discipline, and the favorable sale of its Embraco compressor business contributed to a 70 percent boost in net earnings, to $358 million, during its third quarter ended Sept. 30.
The gains were partially offset by product warranty and liability expenses of $119 million, and were achieved despite a 4.4 percent decrease in net sales, to $5.1 billion, the manufacturer said.
“We have sustained momentum towards achieving our long-term financial goals despite global economic volatility and remain committed to our robust strategy for creating shareholder value,” said Marc Bitzer, Chairman and Chief Executive Officer. “Our fundamentals remain strong, and we made solid progress against our stated priorities with near-break even performance in EMEA [Europe, Middle East and Asia] and strong results in North America.”
Indeed, Whirlpool North America reported third-quarter EBIT (earnings before interest and taxes) of $387 million, a nearly 13 percent increase year over year, while net sales edged up 0.5 percent to $3 billion. The company attributed the region’s results to a profitable product price/mix and cost productivity benefits, which were partially offset by lower unit volume and continued cost increases.
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