Whirlpool Renaissance: Q2 Turnaround

Whirlpool didn't beat "The Street" but the southwest Michigan appliance maker, the world's largest, did beat year-ago. The Benton Harbor-based company turned a quarterly loss into a quarterly profit. And that, I think, qualifies as a "renaissance."

Whirlpool Corporation (NYSE: WHR) announced today second-quarter GAAP net earnings of $113 million, or $1.43 per diluted share, compared to a net loss of $(161) million, or $(2.10) per diluted share reported during the same period last year.  The year-over-year change in GAAP earnings included lower legacy expenses partially offset by lower tax credits.  On an adjusted basis, diluted earnings per share(1) almost doubled to $1.55 compared to $0.81 in the prior year driven by continued improvement in product price/mix and cost and capacity-reduction initiatives. 

Sales, in constant currencies, were up approximately 2 percent.  Excluding the impact of both foreign currency and lower Brazilian (BEFIEX) tax credits, net sales increased more than 3 percent driven primarily by strong product price/mix.  On a reported basis, sales in the quarter were $4.5 billion, compared to $4.7 billion in 2011.

"Our North America and Latin America businesses continue to perform extremely well and we are pleased with our financial performance through the first half of the year," said Jeff M. Fettig, chairman and chief executive officer of Whirlpool Corporation.  "Our ongoing business operating performance is well ahead of last year offsetting lower industry demand, volatile foreign currency and material inflation.  We remain positive regarding our underlying business performance and are optimistic on recent U.S. housing trends exiting the second quarter."

Here's what I believe is even better news and a true renaissance: product launches. This where creativity and market demand intersect.

The Whirlpool brand, in North America, launched several innovative cooking products during the quarter, including:

Double wall ovens with the industry-first innovative FIT system with adjustable feet and trim options that make replacing a wall oven easier with an existing cabinet configuration.

The TimeSavor Ultra pure convection feature in double wall ovens that offers a rear fan and a third heating element to distribute heated air in four directions, achieving better multi-rack cooking performance.

A gas range with Rapid Preheat option that saves time when single-rack baking with 25 percent faster preheating, compared to three-rack models without this option, and the brand's most energy-efficient self-cleaning cycle available with AquaLift self-clean technology.

An induction range that features an Induction Boost element to boil water in half the time and the AccuBake temperature management system that delivers uniform baking results every time.

A microwave hood combination with the industry's first silver metallic, non-stick interior, making cleaning splatters quick and easy.

Two Whirlpool brand ENERGY STAR® qualified dishwasher models featuring the Sensor Cycle that automatically selects the right wash and dry settings for each load, cleaning tough soils 35 percent better than previous wash systems while using just the right amount of time, energy and water.

Maytag brand wall ovens with the industry-first innovative FIT system of adjustable inserts and trim options allows homeowners to customize installation of select models to their existing cabinet, avoiding costly remodeling.

The first Amana brand ENERGY STAR® qualified high-efficiency top-load washer, which uses up to 73 percent less water and 84 percent less energy compared to pre-2004 traditional top-load washers using the normal cycle.

Whirlpool Latin America Region launched:

The Brastemp brand Inverse Maxi refrigerator with a LED touch screen and Internet connection that allows consumers to create shopping lists at their refrigerator and then transfer the lists to their cellular phones.

Whirlpool Europe, Middle East and Africa Region launched:

Bauknecht brand LUMiQ refrigerators with a ShockFreeze compartment featuring exclusive technology that prevents freezer burn.

The Bauknecht brand front-load laundry pair with ECO monitor for exceptional cleaning with less energy consumption. The washer is the only appliance certified by TUV (Technischer Uberwachungsverein) for high quality, durability and reliability. TUV independently tests product quality against rigorous international standards.

A Bauknecht brand dishwasher with PowerClean+, which provides exceptional cleaning without pretreating or rinsing.

Whirlpool Asia Region launched:

Whirlpool brand 4-door French-door refrigerator in China, featuring an external electronic control system and sunshine simulation by LED lighting for longer fruit and vegetable preservation.

Whirlpool brand Neo iChill frost-free energy-efficient refrigerators that chills bottles 40 percent faster than standard refrigerators. The products also retain cooling for 25 percent longer during power outages.

Whirlpool Corporation is the world's leading manufacturer and marketer of major home appliances, with annual sales of more than $19 billion in 2011, 68,000 employees, and 65 manufacturing and technology research centers around the world.  The company markets Whirlpool, Maytag, KitchenAid, Jenn-Air, Amana, Brastemp, Consul, Bauknecht and other major brand names to consumers in nearly every country around the world.  Additional information about the company can be found at http://www.whirlpoolcorp.com.