Whirlpool Announces Job Cuts – Analyst Blog

Whirlpool Corporation (WHR) has revealed that it will begin a new round of layoffs at its refrigerator plant in Fort Smith, Arkansas in order to keep pace with a slowdown in demand. Although the company did not disclose the number of job cuts, the workers to be affected by the layoffs have already been informed last year.

 

The announcement comes on top of the company’s decision to shut down a Michigan plant earlier this year. The plant closure, which is expected to be completed by the end of 2010 or early next year, will eliminate 216 jobs. The company has already transferred the production of laundry appliances from the plant to another plant in Ohio.

 

Whirlpool was highly benefited from cost reduction measures and productivity initiatives in the recent quarter. The company has reported net earnings of $2.82 per share in the second quarter of the year compared with 94 cents during the corresponding period of last year.

 

The company has also beaten the Zacks Consensus Estimate of $2.18 per share during the quarter. Revenues for the company increased 9% to $4.5 billion. The adjusted operating profit was $298 million in comparison to $123 million a year ago.

 

Whirlpool Corporation, a Zacks #3 Rank stock, revised its expectations both for earnings per share and free cash flow for the full year 2010.  It expects to generate a cash flow between $550 million and $650 million, compared to its prior expectation of $500 million to $600 million. Consequently, the earnings per share are expected in the range of $9.00–$9.50, an improvement from its prior outlook of $8.00–$8.50.