Whirlpool of India (500238) Q4 1999 earnings summary

Executive summary

• Operating profit before interest and depreciation rose to Rs. 8,045 lacs for the 12 months ended Dec. 31, 1999, while the period ended Dec. 31, 1998 covered nine months; a net loss of Rs. 1,475.83 lacs remained.

• Commercial focus included No Frost refrigerators, new automatic and semi-automatic washing machines, cost control, and customer service; no dividend was recommended because of the loss.

Financial highlights

• Sales, services and other income totaled Rs. 100,336.33 lacs, including sales and services of Rs. 98,240.14 lacs and other income of Rs. 2,096.19 lacs; prior-period figures cover nine months.

• Operating profit before interest and depreciation was Rs. 8,045 lacs versus Rs. 1,281 lacs in the prior nine-month period; the periods are not directly comparable.

• Loss before tax was Rs. 1,467.99 lacs and net loss was Rs. 1,475.83 lacs, versus losses of Rs. 6,995.87 lacs and Rs. 6,999.14 lacs, respectively, in the prior nine-month period.

• Interest and finance charges were Rs. 5,847.53 lacs; depreciation was Rs. 3,665.27 lacs.

• Other income included Rs. 770 lacs profit from land disposal, net of losses on other asset disposals, and Rs. 98.75 lacs income-tax interest; a separate Rs. 745 lacs tax refund was received.

Outlook and guidance

• Management expected the improved operating-profit trend to continue and strengthen with higher sales volumes and capacity utilization.

• Product plans targeted technology and feature upgrades, new models and colors, lower CFC use, export-oriented CFC-free products, and reduced service incidence.

• Call centers were planned for additional metros in 2000 following a Delhi pilot; brand-building initiatives in South Asia were intended to support future market share.