Whirlpool Profit Slips; Cost-cuts Raise Outlook

EMILY FREDRIX

MILWAUKEE (AP) — Whirlpool Corp., the world's biggest home appliance maker, raised its profit outlook for the year on Friday, saying cost-cutting that has tempered steep sales declines will pay off in the final quarter of the year.

Whirlpool forecasts that economic uncertainty will continue to hold down demand for its big-ticket items in the U.S. and Europe, though Asia and Latin America are seeing improvements as those economies rebound.

That slumping demand, which has been going on for months, took a toll on the company's third quarter, as its profit fell 47 percent. Many shoppers are putting off appliance purchases amid a recession complicated by tight credit and falling housing prices, both of which hurt the market for appliances.

Whirlpool, whose other brands include Maytag and KitchenAid, has cut jobs and closed a factory to deal with lower sales.

The improved outlook and earnings that handily topped expectations led Whirlpool shares to jump $4.38, or 6 percent, to $77.92 in afternoon trading Friday.

The company also boosted its expectations slightly for the U.S. industry this year, although it still expects total industry shipments to decline 10 percent. But that's down from expectations shipments would fall as much as 12 percent.