Whirlpool posts strong third quarter
Benton Harbor, Mich.-based Whirlpool Corp. posted third-quarter net earnings of $177 million, compared with net earnings of $79 million in the same period last year. Sales in the quarter were $4.6 billion, up 2% to $4.5 billion reported in the third quarter of 2010.
"During the quarter, we experienced weaker-than-expected global industry demand and elevated material costs," said Jeff Fettig, Whirlpool chairman and CEO. "Consumers continue to show strong preference for our unmatched global brand portfolio and new product innovations, and we are beginning to see the benefits from previously announced price increases. However, our results were negatively impacted by recessionary demand levels in developed countries, a slowdown in emerging markets and high levels of inflation in material costs.
"Given the weakening global economic environment, we are today announcing aggressive plans that will result in substantial cost and capacity reductions. The plans are the result of a comprehensive global review of our operations, products and manufacturing facilities."
Whirlpool plans to reduce cost and capacity with a workforce reduction of more than 5,000 positions — about 10% — primarily within North America and Europe. These plans include:
• Reduction of about 1,200 salaried positions;
• Closure of the refrigeration manufacturing facility in Fort Smith, Ark., by mid-2012. Production from Fort Smith will be consolidated into North American sites to leverage existing resources and capacity;
• Relocation of dishwasher production from Neunkirchen, Germany, to Poland in January 2012; and
• Additional organizational efficiency actions in North America and Europe.
The company expects these actions will result in $400 million in annual cost savings by the end of 2013.
Whirlpool North America saw third-quarter sales of $2.4 billion, a decrease of 2% from the prior year. Whirlpool Europe, Middle East and Africa reported third-quarter sales of $874 million, a 6% increase from the third quarter of 2010. Whirlpool Latin America reported third-quarter sales of $1.2 billion, an increase of 8% from the year-ago period. Whirlpool Asia saw third-quarter sales of $215 million, an increase of 10% from the prior year.
Newell Rubbermaid reports Q3 loss, announces Project Renewal
Atlanta-based Newell Rubbermaid reported a third-quarter net loss of $177.6 million, compared with net income of $28.3 million in the year-ago period. Net sales for the quarter ended Sep. 30 totaled $1.55 billion, an increase of 5.8% from $1.47 in the third quarter of 2010.
"Our third-quarter results represent a solid step forward,” said Michael Polk, president and CEO. “Core sales growth, operating income margin improvement and operating cash flow came in as expected and improved meaningfully versus our first half and year ago results. These are good numbers in the context of a really tough macro-environment and represent progress toward our goal of delivering consistent predictable results and sustainable profitable growth."
Net income for the nine months ended Sept. 30 totaled $44.8 million, compared with $217.1 million in the year-ago period. Net sales for the nine-month period increased 3.6% to $4.37 billion, compared with $4.22 billion in the prior year.
In addition, Newell Rubbermaid announced Project Renewal, which will simplify and realign the structure of the company.
“Project Renewal [is] an initiative designed to reduce complexity in our operating structure and realign resources to our highest potential businesses,” Polk said. “We plan to achieve savings of approximately $90 to $100 million over the next 12 to 18 months, and invest the majority of these funds back into the business in increased brand building support, strengthened demand creation capabilities in customer development and marketing, and the development of our business system in emerging markets."
The company still expects full-year sales growth of 3% to 5%.
Simpson posts Q3 income increase
Pleasanton, Calif.-based Simpson Manufacturing reported third-quarter income of $19.4 million, up 5.4% from $18.4 million in the third quarter of 2010. Net sales for the quarter increased 10.9% to $162.4 million, compared with net sales of $146.4 million in the year-ago period.
Sales increased in North America and Europe in the third quarter. Sales in the United States rose with above-average increases in the western — excluding California — Midwestern and southeastern regions, compared with the third quarter of 2010. Sales to contractor distributors, dealer distributors and lumber dealers increased, while sales to home centers decreased.
Simpson purchased the software assets of Keymark Enterprises, valued at $11.5 million, for $6.2 million in net cash payments and its 46.05% equity interest in Keymark. The transactions resulted in a gain of $4.3 million. The company’s customers use the software to design and engineer residential structures.
For the first nine months of 2011, income totaled $46.0 million, down 6.7% from income of $49.3 million for the first nine months of 2010. Net sales increased 8.5% to $472.7 million, compared with net sales of $435.9 million for the year-ago period.