New European business and better profit margins on North American sales boosted Whirlpool Corp.'s fourth-quarter earnings nearly 21 percent, the appliance manufacturer said Tuesday. Whirlpool said earned $49.4 million, or 71 cents a share, in the three months ended Dec. 31, compared with a loss of $12 million, or 17 cents a share, in the fourth quarter of 1988. The year-earlier period included a $45 million loss on the sale of Whirlpool's kitchen cabinet business. The company's 1989 fourth-quarter results include $9.2 million in writedowns connection with Whirlpool's plans to close its Mount Sterling, Ky., plant. Revenue totaled $1.57 billion, up from $1.02 billion in the fourth quarter of 1988, the company said. For the year, Whirlpool said it earned $187.2 million, or $2.70 a share, on revenue of $6.29 billion, up from $94.1 million, or $1.36 a share, on revenue of $4.42 billion, in in 1988. Whirlpool became the world's largest appliance concern with the January 1989 acquisition of a $470 million stake in the appliance division of Dutch electronics giant NV Philips. In line with the agreement, the company said 1989 results included all of the revenue of the joint venture, Whirlpool International BV, and 53 percent of its net earnings. Whirlpool International's performance and strong sales in North America helped boost earnings, the company said. However, these gains were offset by several factors, including higher interest expense and taxes, Whirlpool said. David R. Whitwam, Whirlpool chairman and chief executive officer, predicted flat sales to come and said wage cuts accepted by Whirlpool workers in Evansville, Ind., would help keep costs competitive. Whitwam predicted appliance sales would be down slightly in the first half of 1990, possibly rallying in the second half of the year.
