NEW YORK Whirlpool Corp.s second-quarter net income soared 75 percent despite a modest 5-percent increase in sales, leading the company to increase its full-year earnings guidance.
Whirlpools net income of $198 million in the three months ended June 30 were up from $113 million in the same period last year, according to the companys July 19 earnings report. Sales of $4.75 billion were up 5 percent from $4.51 billion in the same comparison, and operating earnings jumped 69 percent to $328 million $194 million.
The company said increases in net income and sales were mainly driven by higher revenue, ongoing cost productivity and the benefit of cost- and capacity-reduction initiatives.
Whirlpool increased its full-year earnings guidance to a range of $10.05 to $10.55 per diluted share from the previous estimate of $9.80 to $10.30 per share. The company said it now expects to generate free cash flow between $650 million and $700 million, up from between $600 million and $700 million.
Whirlpool North America posted sales of $2.6 billion, up from $2.5 billion last year, and operating earnings of $262 million, up from $235 million. Higher sales, ongoing productivity improvements and the benefit of cost and capacity-reduction initiatives more than offset higher material costs, the company said. Whirlpool now expects a 6- to 8- percent increase in U.S. industry unit shipments for 2013.
The company posted year-to-date sales of almost $9 billion compared with $8.86 billion last year, and net earnings of $405 million, up from $205 million.