Whirlpool (WHR), a manufacturer of home appliances, reported late Tuesday mixed results in the third quarter, with sales declining from a year earlier and also missing the market’s forecast as turnover plunged in Latin America.
Net sales at the Michigan-based company declined to $5.09 billion during the three months that ended September 30 from $5.33 billion a year ago, missing the $5.15 billion average analyst estimate compiled by Capital IQ. Group turnover fell as net sales plunged by 27.9% in Latin America and were down 3.8% in Europe, the Middle East, and Africa, the second-biggest contributor to group revenue, the firm said in its earnings statement.
Adjusted earnings of $3.97 per share fell from $4.55 per share a year earlier but still beat the $3.90 consensus estimate. The company said its prior-year period adjusted earnings were “favorably impacted by a lower effective tax rate, primarily related to pre-funding of its US pension and other tax planning strategies.”
Additionally, in North America, which contributed just under 60% to group turnover in the quarter, the favorable impact of product price/mix and cost productivity benefits on earnings before interest and tax were partially offset by lower unit volumes and continued cost inflation.
“We have sustained momentum toward achieving our long-term financial goals despite global economic volatility,” Chief Executive Officer Marc Bitzer said in the statement.
For the full year 2019, the company reaffirmed its adjusted earnings per share guidance as it trends toward the top end of the $14.75 to $15.50 range.
The firm, however, lowered its unadjusted earnings per diluted share guidance to $16.80 to $17.55 for the full year from $17.80 to $18.55 set out in the firm’s second-quarter results due in part to additional product warranty and liability expense.
This post was originally published on Health Opinion