BENTON HARBOR, Mich. (AP) — Whirlpool's second-quarter net income soared 75 percent as demand improved for its appliances and it benefited from some tax credits. The company lifted its full-year earnings forecast Friday and said that it resumed repurchasing shares.
Shares rose more than 2 percent in premarket trading.
Whirlpool's encouraging performance comes at a time when the housing market is continuing its recovery. With mortgage rates still low and consumers becoming more confident about the economy, more people are considering home purchases. And once a home is bought this often means that consumers will be shopping for big-ticket appliances that Whirlpool sells, like washers and dryers.
For the period ended June 30, Whirlpool Corp. — whose brands include Maytag, KitchenAid and its namesake — earned $198 million, or $2.44 per share. That's up from $113 million, or $1.43 per share, a year earlier.
Removing Brazilian tax credits, energy tax credits, a restructuring charge and other items, earnings were $2.37 per share.
Analysts, on average, expected a bit more, forecasting earnings of $2.48 per share, according to a FactSet poll.
Revenue for the Benton Harbor, Mich., company increased 5 percent to $4.75 billion from $4.51 billion with sales climbing in all regions. This is higher than the $4.67 billion that Wall Street predicted.
Shares climbed $2.63, or 2.2 percent, to $122 before the market open.
Whirlpool raised its full-year adjusted earnings outlook to a range of $9.50 to $10 per share, up from $9.25 to $9.75 per share. Analysts expect earnings of $9.79 per share.
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