Whirlpool operating earnings fall, reduces outlook, stock takes hit

After reducing its profit outlook for 2011 and announcing 5,000 job cuts primarily in North America and Europe, Whirlpool Corp. stock fell almost 12 percent Friday, the sharpest drop since 2008.

The Benton Harbor, Mich.-based appliance manufacturer on Friday released its third-quarter financial results and reduced its earnings-per-share outlook for 2011 to a range of $4.75 to $5.25 compared with its previous estimate at the low-end of the range of $7.25 to $8.25 per share. Whirlpool shares fell $7.15, or 11.82 percent, to $53.32 per share at mid-morning Friday on the New York Stock Exchange

The world's largest maker of household appliances reported third-quarter net income more than doubled to $177 million, or $2.27 per share, from $79 million, or $1.02 per share, in the same quarter of 2010. Adjusted earnings of $2.35 per share fell short of analyst expectations for $2.73 per share.

Revenue rose 2 percent to $4.63 billion from $4.5 billion in the third quarter of 2010, but short of analyst expectations for $4.74 billion.

Whirlpool operating income fell to $136 million in the third quarter from $234 million in the same quarter last year. The company attributed the drop to lower industry volumes, higher material costs and restructuring costs.

Whirlpool on Thursday announced plans to close its plant in Fort Smith, Ark., by mid-2012, putting more than 1,000 hourly and salaried employees out of work. The company plans to move the Arkansas plant's built-in refrigerator production to Amana, which will add 160 jobs.

Whirlpool also will relocate dishwasher production from Neunkirchen, Germany, to Poland in January 2012. The company expects the moves will save $400 million by the end of 2013.

Whirlpool said it anticipates recording restructuring expenses of approximately $160 million in 2011 compared with its previous estimate of $75 million to $100 million. It also expects restructuring expenses of about $500 million will be incurred over the period beginning in the fourth quarter of 2011 through 2013.