Whirlpool profit beats estimates on higher prices, cost cuts

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© Reuters. The administrative entrance at the Whirlpool plant in Clyde Ohio© Reuters. The administrative entrance at the Whirlpool plant in Clyde Ohio

(Reuters) – Whirlpool Corp (N:) beat analysts’ estimates for quarterly earnings and forecast 2020 profit largely above expectations on Monday, as the appliances maker raised prices and reined in expenses to cushion the impact of higher production costs.

Cost of imported steel and aluminum, both major components in the company’s products, have remained high due to U.S. tariffs.

Whirlpool, which owns brands such as KitchenAid and Maytag, said it expects full-year 2020 profit to be between $16.00 per share and $17.00 per share, the mid-point of which came in above analysts’ average estimate of $16.34.

Net earnings available to the company rose to $288 million, or $4.52 per share, in the fourth quarter ended Dec. 31, from $170 million, or $2.64 per share, a year earlier.

Whirlpool said cost of products sold fell nearly 8% to $4.33 billion.

Excluding items, the company earned $4.91 per share, beating estimate of $4.27, according to IBES data from Refinitiv.

Net sales of $5.38 billion missed analysts’ estimates of $5.52 billion.

The company’s shares were up 1.5% at $150.49 in extended trading.

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