Check 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.

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(Reuters photo)

Check out the surprise quarterly profit at Whirlpool.

The world’s biggest appliance maker, known for its namesake, Maytag and KitchenAid brands,  was aided in the unexpected good news — analysts were expecting a loss — by its cost-cutting efforts. The company has frozen salaries, reduced its contribution to retirement plans and taken other steps to save money amid the recession.

Despite the profit, sales tumbled 23 percent in the first quarter. Whirlpool also said it now expects 2009 industry unit shipments in the United States and Europe to decline more than previously expected.

Whirlpool was not the only company getting a boost from cost cutting. Energizer, which makes its namesake batteries, Schick razors and Playtex tampons, posted a higher-than-expected profit as cost cutting helped offset pressure from foreign exchange and consumers trading down to cheaper batteries.

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(Photo courtesy of Whirlpool Corp)

Check out the falling profits at Whirlpool and Hasbro.
 
Whether the ovens you make cook with gas like Whirlpool’s or with a light bulb like Hasbro’s Easy-Bake, it’s hard to make much money when people don’t want to buy anything.
 
Whirlpool profit fell 76 percent in the fourth quarter as sales in North America dropped 18 percent. The world’s biggest appliance maker also said it expected industrywide shipments of appliances to fall 10 percent in 2009.
 
Hasbro, which makes littler appliances, as well as G.I. Joes and Transformers, saw a 30 percent drop in quarterly profit as shoppers bought fewer toys for the holidays.
 
The company plans to focus on cutting costs this year, as are many, if not most companies in the United States. 
 
But wait, is that G.I. Joe coming to the rescue? A G.I. Joe movie this year is expected to help lift sales of the action figures and other toys Hasbro sells under those names.
 
Perhaps they can work some kitchen scenes into the script and help out Whirlpool. C’mon, at least a trash compactor to deal with the bad guys?
 
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(Reuters photo from 2002)

The beaten-down appliance sector got a shot in the arm on Black Friday as many consumers bought new washers for their laundry rooms, one spot survey shows.

Appliance sales, especially of washing machines and dryers, were up significantly over Thanksgiving weekend as shoppers responded to discounts, said David MacGregor, an analyst with Longbow Research.

More consumers are also buying extended warranties for these big-ticket items, he added.

MacGregor, who conducts regular surveys of appliance sellers, said 87 percent of retailer contacts indicated sales met or exceeded expectations, in some cases doubling forecasts for the weekend.

Sears, the biggest U.S. appliance retailer, benefited strongly as promotions and doorbuster offers drove Black Friday traffic. The retailer’s Black Friday deals included a Kenmore washer-dryer pair priced at $599 that normally sells for $1,199, a spokesman told Reuters.

“Based on our estimates of costs, we believe that Sears probably sold most of these heavily discounted items at or below cost and then tried to recover some margin through sales of extended warranties,” MacGregor said in a research note.

The continuing U.S. housing slump and tighter credit has hurt appliance demand. U.S. shipments of major appliances were down about 9 percent for the year to date through late October, according to the Association of Home Appliance Manufacturers.

The analyst said he expects the Black Friday strength to aid Whirlpool, whose brands hold leading market share positions in most categories. Whirlpool’s shares, which have fallen 50 percent this year, were up 8 percent on Thursday.

Photo: Whirlpool

Check out the Whirlpool of woe.
 
Five thousand. That’s the number of jobs Whirlpool plans to cut by the end of next year as it faces falling sales in North America and a potential global recession.
 
Appliance makers have already been hammered by the U.S. housing collapse. Now the credit crunch is likely to keep demand down, the world’s largest appliance maker said.
 
“The global credit crisis has had a profound negative impact on what was already a weakening and very fragile global economy,” Whirlpool Chief Executive Jeff Fettig (pictured left) said in a statement.
 
Some of the job cuts had already been announced. Others were new. They all add to a slew of job cuts announced by corporate America in recent weeks.
 
That creates a spiral of people not being able to buy the goods the manufacturers make, which could cause manufacturers to cut more jobs as the economy keeps swirling down the drain.
 
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(Photo: Reuters)