Whirlpool misses profit expectations as Brexit hits sales

As sales decline in the UK following the vote in June to leave the European Union

Whirlpool Corp, the world's largest maker of home appliances, reported lower-than-expected fourth-quarter earnings on Thursday, hurt by a decline in sales in the United Kingdom following the vote in June to leave the European Union.

Whirlpool's overall net sales rose 1.7% to $5.66 billion in the quarter ended Dec. 31, but sales in Europe, the West Asia and Africa tumbled 6.7% $1.4 billion.

Sales in North America, the company's biggest market, rose 6.9% to $3.1 billion.

Margins were negatively impacted by about $40 million in the UK due to a decline in the value of the pound and a drop in demand associated with the Brexit decision, the company said.

Whirlpool's overall sales had fallen in the previous four quarters due to soft demand, tough competition in the US market and, more recently, the pound's weakness.

Net income available to Whirlpool was unchanged at $180 million in the quarter, but earnings per share rose to $2.36 from $2.28. Earnings from continuing operations increased to $4.33 per share from $4.10 but missed the average analysts' estimate of $4.44, according to Thomson Reuters.

Whirlpool forecast 2017 earnings from ongoing operations of $15.25-$16.25 per share, within the average estimate of $15.96.

The company said it incurred $33 million in acquisition-related transaction costs in the latest quarter.

Whirlpool bought some majority-owned indirect subsidiaries last year to simplify its corporate structure in Brazil.

Whirlpool, whose brands also include KitchenAid and Maytag, said it expected full-year industry unit shipments in the United States to increase by 4 to 6%.

Chief Executive and Chairman Jeff Fettig was one of a dozen chief executives who visited the White House on Monday for a meeting with US President Donald Trump that focused on corporate tax, regulations and trade.

Swedish rival Electrolux said last month it expected slower growth this year in both North America and in Europe, including Britain.

Whirlpool said on Tuesday it would restructure its dryer manufacturing operations in Europe, West Asia and Africa and cut about 500 jobs in the region.

The company said it expected costs related to the restructuring of about $88 million.

Shares in Whirlpool, which have risen 20.4% since Trump's Nov. 8 election victory, were down 1.1% in premarket trading.