Whirlpool, Panasonic Agree to Plead Guilty on Price-Fixing Charges (WHR, PC)
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Whirlpool Corp. (NYSE: WHR) and Panasonic Corp. (NYSE: PC) have agreed to plead guilty to charges from the Justice Department that the companies conspired on the fixing of prices for home and commercial refrigerator compressors.
Whirpool’s subsidiary, Embraco North America, has agreed to pay a criminal fee of $91.8 million, while Panasonic agreed to pay $49.1 million, the Department said.
"These are the first charges as a result of the antitrust division's ongoing investigation into the worldwide refrigerant compressors market," said Christine Varney, head of the Justice Department's antitrust division.
Following the announcement, Whirlpool said that the expense caused it to lower its earnings forecast for the full year to a range of $7.80 to $8.30 per share from a prior view of $9.00 to $9.50 per share.
The world’s leading maker of major home appliances added that on an adjusted basis it still expects to see full year earnings of $9.56 to $10.06 per share.
Panasonic said that the charge would have no material effect on the company’s fiscal year.
"Panasonic has been cooperating with the government and the plea agreement reflects a reduction in fines," said Panasonic spokesman Jim Reilly.
Shares of Whirlpool are down 44 cents to $80.31 in midday trading, while shares of Panasonic on the NYSE are down 13 cents to $13.95.
Whirpool’s subsidiary, Embraco North America, has agreed to pay a criminal fee of $91.8 million, while Panasonic agreed to pay $49.1 million, the Department said.
"These are the first charges as a result of the antitrust division's ongoing investigation into the worldwide refrigerant compressors market," said Christine Varney, head of the Justice Department's antitrust division.
Following the announcement, Whirlpool said that the expense caused it to lower its earnings forecast for the full year to a range of $7.80 to $8.30 per share from a prior view of $9.00 to $9.50 per share.
The world’s leading maker of major home appliances added that on an adjusted basis it still expects to see full year earnings of $9.56 to $10.06 per share.
Panasonic said that the charge would have no material effect on the company’s fiscal year.
"Panasonic has been cooperating with the government and the plea agreement reflects a reduction in fines," said Panasonic spokesman Jim Reilly.
Shares of Whirlpool are down 44 cents to $80.31 in midday trading, while shares of Panasonic on the NYSE are down 13 cents to $13.95.
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