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Retailers, consumers and prices

Check Out Line: Cost cutting your way to a better day

October 23, 2009

cut1Check out how cost cutting helped Whirlpool.

The world’s biggest appliance maker used cost cuts to offset weak sales as it reported a higher-than-expected quarterly profit. Whirlpool also raised its full-year profit outlook, citing downsizing and — yes, you guessed it — cost cuts as demand remains uncertain in many markets.

Sales at appliance makers like Whirlpool, known for its Maytag and KitchenAid brands, and Sweden’s Electrolux have suffered in the global economic slowdown as consumers trim spending on items not deemed essential.

Whirlpool’s recent cost cutting actions have included plant closures, consolidation of its Chinese operations, lower retirement plan contributions, frozen salaries and lower capital spending.

Also in the basket:

Fortune Brands profit tops Street view

Cache posts wider-than-expected Q3 loss; sees Q4 profit

Wal-Mart shrinks US supercenters, sees tepid sales

Long lines as Microsoft opens retail store

Amazon soars above Street view, shares skyrocket

(Reuters photo)

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