Top appliances maker Whirlpool's profits dive 76 per cent

Whirlpool Corp, the world's biggest appliance maker, reported lower quarterly profit on Monday as sales fell worldwide and it posted an operating loss in North America, its biggest market. The company said it was taking additional moves to cut costs.

Fourth-quarter profit fell 76 per cent to $44 million, or 60 cents a share, from $187 million, or $2.38 a share, a year earlier. The Benton Harbor, Michigan-based company says earnings available to common shareholders slid to $44 million, or 60 cents per share, compared with $187 million, or $2.38 per share, a year ago.

Results included a $77 million restructuring charge and a $32 million product recall expense. Revenue fell 19 per cent to $4.32 billion from $5.32 billion.

The company stated that the fourth-quarter earnings reflect sharply lower global unit sales and production volumes, higher material and oil-related costs and unfavorable foreign currency exchange movements compared to the fourth quarter of 2007.

The company, whose debt ratings have been downgraded recently, said it was in full compliance with bank covenants, but had began talks with banks to "seek additional flexibility within its capital structure." Whirlpool predicts 2009 profit of $3 to $4 per share. Analysts expect profit of $4.12 per share on revenue of $18.46 billion.