Whirlpool Corporation (WHR) spent approximately $200,000 in the second quarter of 2011 to lobby government officials. The amount was almost unchanged from the amount spent in the same quarter last year but was slightly higher than $180,000 spent in the first quarter of 2011.
Whirlpool lobbied for an anti-dumping petition it filed against Samsung Electronics Co. Ltd. and LG Electronics Inc. accusing both of price undercutting when it came to selling refrigerators in the U.S. In addition, the company also lobbied for tax credits for energy-efficient appliances, proposed regulations to the U.S. Trade Representative and the Department of Commerce in order to improve the energy efficiency of appliances. Whirlpool is also keen on free-trade agreements with Colombia, South Korea and other countries and thus also lobbied for access to these markets.
Benton Harbor, Michigan-based Whirlpool Corporation was incorporated in 1955 and is one of the largest manufacturers of home appliances in the world. The company’s portfolio of products can be broadly categorized into laundry appliances, refrigerators and freezers, cooking appliances, and other small household durables including dishwasher and mixers. Its brand names include Whirlpool, Maytag, KitchenAid, Roper, Jenn-Air, Amana, Brastemp, Consul and Bauknecht.
In the last reported quarter, adjusted earnings of the company were $2.76 per share, exactly in line with the Zacks Consensus Estimate. This compared with the adjusted profit of $2.82 per share in the second quarter of 2010. Adjusted operating profit was $223 million versus $298 million a year ago.
Whirlpool’s results in the quarter were favorably impacted by cost reduction and productivity initiatives and increased monetization of certain tax credits. However, these were offset by lower product price/mix and higher material and oil-related costs.
Revenues in the quarter increased marginally by 4% to $4.7 billion and were in line with the Zacks Consensus Estimate. The Latin America, Europe, Middle East and Africa regions saw improvements in terms of revenues, whereas declines were experienced in North America and Asia.
Whirlpool has projected earnings per share between $12.00 and $13.00 for fiscal 2011. In addition, the company expects to generate free cash flow between $400 million and $500 million for the same period. The company also expects to generate cash flow from operating activities in the range of $740 million–$860 million for 2011. Capital expenditure for the full year is estimated between $600 million and $625 million.
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