Sluggish Sales Push Whirlpool Profit Down 81% in 4th Quarter
Whirlpool Corp. said fourth-quarter earnings fell 81% because of higher material costs and sluggish sales in Europe and North America.
The Benton Harbor, Mich.-based appliance maker said net income was $18 million, or 25 cents a share, compared with profit from continuing operations of $96 million, or $2.10, a year earlier. A restructuring charge of $187 million in the year-ago quarter resulted in a loss of $91 million, or $1.20.
Wall Street was expecting the company to earn 38 cents a share.
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Knight-Ridder Inc. said fourth-quarter earnings fell 42%, reflecting increased newsprint costs and the effects of a prolonged strike.
Knight-Ridder, whose Detroit Free Press workers have been on strike for six months, said net income declined to $30.9 million, or 63 cents a share, from $53.2 million, or 99 cents, a year ago.
The company said earnings were reduced by $17 million, or 20 cents a share, because of severance costs for firing 125 people at its Knight-Ridder Financial unit.
The Miami-based media company was expected to earn 83 cents a share, based on the average estimate of analysts.
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Avon Products Inc. said fourth-quarter earnings rose 5.4% on higher U.S. sales of cosmetics and the successful introduction of two fragrances.
The New York-based direct seller of beauty and related products said profit from operations was $116.1 million, or $1.71 a share, compared with $110.1 million, or $1.59, a year earlier.
A previously announced fourth-quarter charge of $29.6 million, or 43 cents a share, to settle a lawsuit with former subsidiary Mallinckrodt Group Inc. resulted in net income of $86.5 million, or $1.28.
Wall Street had been expecting the company to show profit from operations of $1.68 a share.
At a Glance:
Marriott International Inc. said fourth-quarter earnings rose to $90 million, or 68 cents a share, from $72 million, or 55 cents, a year earlier. . . . MGM Grand Inc. said fourth-quarter net income rose to $31.8 million, or 66 cents a share, from profit from continuing operations of $14 million, or 29 cents.
