Whirlpool reports Q2 loss
Benton Harbor, Mich.-based Whirlpool has announced a second-quarter net loss of $161 million, compared with net earnings of $205 million in the same period last year.
Second-quarter results include the settlement of a Brazilian collection dispute for about $3.78 per share and increased accruals related to developments in the Embraco antitrust matters of $1.08 per share.
Sales in the second quarter of 2011 totaled $4.7 billion, up 4% from $4.5 billion in the second quarter of 2010.
"While the challenging economic environment has kept us from achieving our targeted margins, we delivered a solid quarter," said Jeff M. Fettig, Whirlpool chairman and CEO. "Our continued cost and productivity initiatives coupled with strong product innovation have helped mitigate a volatile demand environment and record levels of material cost inflation. Additionally, our recently announced price increases in key countries around the world help position us for stronger second half performance."
In the company’s North American division, second-quarter sales totaled $2.4 billion, down 7% from the prior year. North America unit shipments decreased about 5%, while U.S. industry unit shipments of major appliances decreased about 10%.
Operating profit for the North America region totaled $76 million, down 62% from $200 million in the previous year.
Based on the current economic outlook, Whirlpool expects full-year 2011 U.S. industry unit shipments to decrease between 1% and 2%.
"We expect global economic volatility to continue in the near term," Fettig said. "We are rapidly adjusting to a much more challenging global economic environment. Our primary focus is to expand operating margins, which we expect to do throughout the second half of the year."
IKEA prepares for Denver-area opening
IKEA’s Denver-area store will open in Centennial, Colo., on July 27.
IKEA Centennial is the Swedish company’s first store and restaurant destination in Colorado, 38th in the United States, and 324th worldwide. The 415,000-sq.-ft. IKEA Centennial is located on 13.5 acres along the western side of Interstate 25, north of the Park Meadows area, accessible via the County Line Road exit.
Colorado Governor John Hickenlooper, Centennial Mayor Cathy Noon and IKEA U.S. president Mike Ward will join IKEA Centennial store manager Kelly Frieze in the official opening of the new store.
Sales rise for Stanley Black & Decker
Tool manufacturer Stanley Black & Decker reported net sales of $2.62 billion for its second quarter, an increase from $2.37 billion in the same period a year ago.
Net income for the New Britain, Conn., company was $197.3 million, up from $45.8 million in the second period last year.
In the construction and do-it-yourself (CDIY) segment, double-digit unit volume growth in Latin America and Asia and sales growth of professional power tools and accessories, along with the success of new product launches, offset products sales declines in the United States and weak market conditions in Europe. Security sales increased 9% versus the prior year.
"We remain encouraged by the revenue and profit growth we are seeing in the emerging markets, particularly Latin America and Asia," company CEO John Lundgren said in a prepared statement.
Within the Professional Power Tools & Accessories business, the continued success of the 12V lithium-ion cordless line as well as the new 18V lithium-ion products that were launched in Europe in May drove revenue growth, according to the company. Weather-related weakness in outdoor products more than offset high single-digit organic growth within the Consumer Power Tool business during the quarter. Sales for the Pfister business fell 21% due to the ongoing impact of the first-quarter 2011 loss of SKUs at a major customer.