Whirlpool Corporation Tuesday announced that fourth-quarter net earnings rose 111 percent to $95 million, or $1.24 per diluted share, compared to $44 million, or $0.60 per diluted share reported during the same period last year. Sales reflected a 13 percent increase ($4.9 billion) over those reported in the Q4 of 2008 ($4.3 billion).
Foreign exchange translation excluded, the company's Q4 sales increased approximately 5 percent.
2009 Q4 operating profit totaled $199 million compared with $10 million in 2008. Results were favorably impacted by cost reduction and productivity initiatives and increased sales volume, which were both partially offset by lower price/mix.
Full-year 2009 net earnings are reported as being $4.34 per diluted share compared to $5.50 per diluted share reported for 2008. Annual net sales decreased ten percent from 2008's report of $19 billion to $17.1 billion.
Foreign currency translation excluded, sales declined approximately 6 percent from those reported in 2008.
"In 2009, we significantly improved our global cost structure and operating performance despite a substantial decline in global demand levels," said Jeff M. Fettig, chairman and chief executive officer of Whirlpool Corporation. "In addition, we generated record free cash flow and strengthened our financial position. I am pleased with our execution in this challenging environment, and we look to build upon our progress in 2010."
According to the report, Whirlpool generated free cash flow of $1.1 billion during 2009 compared with $(0.1) billion during 2008. For the full-year 2009, the company reported cash flow from operations of more than $1.5 billion. Working capital, particularly due to reduced inventory balances, was a significant source of cash flow during the year.
Q4 sales increased 52 percent in Whirlpool Latin America ($1.2 billion), 4 percent in Whirlpool North America ($2.6 billion), 2 percent in Whirlpool Europe ($956 million) and 34 percent in Whirlpool Asia ($188 million).
The company is forecasting 2010 industry shipments to increase 5 to 10 percent in Latin America, 3 to 5 percent in Asia, 2 to 4 percent in North America and to remain the same in Europe.
For the full-year 2010, Whirlpool Corporation expects earnings per diluted share between $6.50 and $7.00 and to generate free cash flow of approximately $400 to $500 million. The company's earnings and free cash flow projections are based upon current economic forecasts and business plans.
"We have positioned the company to deliver strong earnings growth despite a continued challenging economic backdrop in the developed economies," said Fettig. "Cost reduction, cash flow generation and balanced market execution remain key operating priorities. These efforts combined with our global brand portfolio, innovative product offerings and the value of innovation we bring to consumers will provide us with growth opportunities throughout the year."