Whirlpool Profit Declines Sharply, Latin America Sales Weak

TheStreet

Whirlpool shares moved sharply lower on Wednesday after the home appliances maker reported a decline in second quarter profit. Earnings came in at $2.25 a share, down almost $0.20 cents from a year ago and below estimates. Revenue came in at roughly $4.7 billion, which is nearly same as last year but lower than expectations. Sales fell in every major global region except North America. Sales in Latin America, Europe and Asia were especially weak. The company has two pending acquisitions: appliances maker Hefei Rongshida Sanyo Electric from China and Indesit from Italy. Combined with weak profits, Whirlpool is lowering its full-year earnings forecast by more than 10%. Despite the miss, Jay McCanless from Steene Agee thinks Whirlpool has good upside potential. McCanless reiterates his 'buy' rating and says people shouldn't overly trim expectations, but should pick up some shares on any weakness because they are remain a bargain. TheStreet's Julia Sun reports from New York.