Whirlpool 2Q Earnings Up 163%,

[rdean]

Whirlpool Corp. said second-quarter net earnings rose 163% to $205 million, or $2.64 per diluted share, compared to $78 million, or $1.04 per diluted share during 2Q 2009.

Sales were $4.5 billion, up 9% from $4.2 billion in the second quarter of 2009. Excluding the impact of foreign exchange translation, the company's second-quarter sales increased approximately 6%.

Second-quarter operating profits were $331 million, compared to $134 million in the prior year.

ApplianceMagazine.com | Whirlpool 2Q Earnings Up 163%

Industry Demand Still Increasing

The NABE report showed job creation trends still improving, with a second quarter of net positive payroll gains. The percentage of firms increasing payrolls increased to 31% - which NABE called a dramatic increase compared to the 6% of one year ago. 14% of firms were cutting jobs in July 2010, down from 36% a year ago.

39% of respondents expect their firms to add employees in the next 6 months - the highest level of hiring intentions since January 2008.

59% of firms reported that the European credit and debt crisis will have no effect on their firm; 35% indicated it will have a negative impact.

ApplianceMagazine.com | Industry Demand Still Increasing

 

[Pepe]

Whirlpool Corp. said second-quarter net earnings rose 163% to $205 million, or $2.64 per diluted share, compared to $78 million, or $1.04 per diluted share during 2Q 2009.

Sales were $4.5 billion, up 9% from $4.2 billion in the second quarter of 2009. Excluding the impact of foreign exchange translation, the company's second-quarter sales increased approximately 6%.

Second-quarter operating profits were $331 million, compared to $134 million in the prior year.

ApplianceMagazine.com*|*Whirlpool 2Q Earnings Up 163%

Industry Demand Still Increasing

The NABE report showed job creation trends still improving, with a second quarter of net positive payroll gains. The percentage of firms increasing payrolls increased to 31% - which NABE called a dramatic increase compared to the 6% of one year ago. 14% of firms were cutting jobs in July 2010, down from 36% a year ago.

39% of respondents expect their firms to add employees in the next 6 months - the highest level of hiring intentions since January 2008.

59% of firms reported that the European credit and debt crisis will have no effect on their firm; 35% indicated it will have a negative impact.

ApplianceMagazine.com*|*Industry Demand Still Increasing

Whirlpool faced with a Union that could not see next week much less the next 5 years began moving production in the late 1980's.

I lived initially in Ft Smith, AR after retiring from the Army in '86 and at that time Whirlpool was the largest employer in Western Arkansas with some 5000 full and part time help.

The Company managed to get the Plant in Indiana and Arkansas to have their Union Contracts come due at the same time. I believe it was 89 or 90. Whirlpool made the same offer to both plants with the caveat that the first to accept would have their Plant remain open. The other would be shut down and the employees permanently terminated.

Indiana, being Yankees, said "Hell No"!

That plant closed and Ft Smith remained open.

Then in the late 90s faced with competition from cheaper labor overseas, Whirlpool moved most production from Ft Smith to Mexico.

When the contract with Sears expired, the lines that were still open in Ft Smith for contractual reasons were closed and all production moved to Mexico.

With labor costs running 50-70/hr in the US and Jose willing to work for 2.00/hr, it is a no brainer.

Outsourcing and automation will continue unabated for the foreseeable future.