Operating profit of $40million accounts for 3% of sales up from 2.2% of sales Q3 2015
Appliance brand Whirlpool’s Europe, Middle East and Africa (EMEA) region saw third-quarter net sales drop of 6% to $1.3billion from $1.5billion, during the same period last year.
On-going business segment operating profit also fell to $40million or 3% of sales, compared to from $71million or 4.9% of sales in Q3 of 2015.
However, the company reported third quarter GAAP operating profit of $40million or 3% of sales compared to $32million or 2.2% of sales last year.
The company cited on a GAAP basis its current results were “negatively impacted by acquisition integration costs and prior-year period results were negatively impacted by legacy product warranty and liability expenses.”
Whirlpool EMEA expects the 2016 unit shipments to be flat, to up to 2%.
Its worldwide third quarter net sales were $5.2billion, a slight fall from $5.2billion at the same time last year. However, Whirlpool reports it was impacted by currency as sales increased slightly.
Group operating profit totalled $370million or 7% of sales compared to $329million of 6.2% of sales in the same period of 2015.
President and chief operating officer of Whirlpool Corporation Marc Bitzer said: “In Europe, the UK environment remains challenging, but we continue to execute brand and product transitions while adjusting our production levels to right-size our inventory.”
Chairman and chief executive officer of Whirlpool Corporation Jeff Fettig stated: “We are confident that our previously deployed plans will deliver a record year of performance with strong revenue growth and margin expansion as we manage through continued challenges in a volatile global environment.”
He continued: “Our long-term strategic priorities remain unchanged and we will continue to deliver shareholder value through the execution of our priorities and a balanced approach to capital allocation.”