Whirlpool 1st-quarter profit more than doubles as sales of its appliances improve

Whirlpool 1Q profit more than doubles, sales rise

NEW YORK — Federal rebates for energy-efficient appliances pulled shoppers back into stores, helping Whirlpool Corp.’s revenue rise and its first-quarter profit more than double, the company said Monday.

Shares in the world’s largest appliance maker’s soared 10 percent Monday after it raised its profit forecast above analysts’ estimates.

The shares gained $10.20 to close at $112.42 on heavy volume after setting a new 52-week high of $118.44. They have traded as low as $37.24 over the last year.

The strong results show some shoppers are feeling comfortable enough to resume buying big-ticket items. The recession dampened demand, which depressed Whirlpool’s profit and caused it to cut jobs and close a factory.

Whirlpool, which sells Maytag, KitchenAid, Jenn-Air and its namesake brand, declined to say exactly how much the federal stimulus program boosted quarterly sales.

North American shipments of Whirlpool products increased 11 percent in the first three months of the year, and demand held steady even as the rebate programs neared an end in some states, Whirlpool said.

CEO Jeff Fettig said Whirlpool factories in South America and North America are now running 24 hours a day, seven days a week, and calling back laid off employees as needed. But he said it’s still too early to tell if the growth rates will continue.

“We’re not completely convinced that the growth trends are stable enough to say that they’re going to continue at these rates,” he said. “The biggest variable is really demand. Demand is better, we’ll do better. Demand is worse, then we’ll have to find ways to make it up.”

The company earlier forecast that U.S. appliance shipments overall would rise between 2 percent and 4 percent this year and now sees an increase of 3 percent to 5 percent. The company said, it would be the first full year of positive growth for industry shipments in four years.

Whirlpool said the volume increase does not indicate a rebound in housing construction; analyst Brian Sozzi with Wall Street Strategies said consumers were buying replacement items.

The $300 million rebate program was part of last year’s stimulus bill. It offered rebates — in amounts that varied by state — to buyers of products with the “Energy Star” label.

In some states people claimed all the available rebates within days. Massachusetts is offering a second round this summer after its allotted funding was claimed within hours.

In the quarter that ended March 31, Whirlpool earned $164 million, or $2.13 per share, well above the $68 million, or 91 cents per share, it earned a year earlier, and above the $1.33 per share that analysts surveyed by Thomson Reuters expected. Analysts typically exclude one-time items, but the company didn’t report any.

The company, based in Benton Harbor, Mich., said its revenue rose 20 percent to $4.27 billion from $3.57 billion, topping analyst forecasts for $3.79 billion.

Sozzi told clients in a note that Whirlpool has become more productive and is gaining market share in Brazil and Asia.

Whirlpool anticipates earning $8 to $8.50 per share for 2010, up from $6.50 to $7 per share. Analysts expect annual profit of $7.08 per share.

AP Retail Writer Michelle Chapman contributed to this report from New York.