Whirlpool posts stronger-than-expected profit

Whirlpool posts stronger-than-expected profit

Appliances maker Whirlpool Corp on Wednesday reported a 10.8per cent rise in third-quarter profit as stay-at-home orders boosted demand for its home appliances during the coronavirus crisis.

The administrative entrance at the Whirlpool plant in Clyde Ohio
FILE PHOTO: The administrative entrance at the Whirlpool plant in Clyde, Ohio, U.S. October 3, 2017. REUTERS/Aaron Josefczyk

REUTERS: Appliances maker Whirlpool Corp beat Wall Street estimates for third-quarter profit on Wednesday as stay-at-home orders boosted demand for its home appliances during the coronavirus crisis.

Shares of Whirlpool rose about 8per cent in after market trading as it reinstated its full-year adjusted profit forecast.

Whirlpool said it now forecasts earnings per share between US$17.50 and US$18 for fiscal 2020, compared with analysts' estimate of US$13.71.

Brokerage BofA on Tuesday said appliance demand has snapped back strongly driven by discretionary income being diverted out of socially intensive activities like traveling into the home amid pandemic

The company said it now expects net sales to decline between 5per cent and 7per cent in 2020, compared with its previous forecast for a fall of 10per cent to 15per cent.

Excluding items, it earned US$6.91 per share, beating analysts' estimate of US$4.20 per share, according to IBES data from Refinitiv.

Net earnings available to the company rose to US$397 million, or US$6.27 per share, in the third quarter ended Sept. 30 from US$358 million, or US$5.57 per share, a year earlier.

Sales rose 3.9per cent to US$5.30 billion.

(Reporting by Shreyasee Raj in Bengaluru; Editing by Devika Syamnath)

Source: Reuters

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