Cost reduction initiatives bolster Whirlpool's profitWhirlpool's cost reduction initiatives seem to have paid off for the appliance maker, as it released full year profit projections that exceeded analysts' expectations.

Whirlpool said that a successful business cost reduction campaign and price increases would help increase profit margins in its new fiscal year. Executives from the company said that although it struggled in 2011 under the weight of rising commodity costs, it had improved supply chain management and instituted cost reduction programs that would bolster profit margins in the current fiscal year.

The Wall Street Journal reports the announcement from Whirlpool, the globe's largest appliance maker, sent company shares up 18 percent on Wednesday. The company's robust quarterly earnings also fueled the positive investor sentiment, as Whirlpool reported a 20 percent surge in its fourth quarter profit.

"We feel good about the momentum we have in our business," Whirlpool chief executive Jeff Fettig said. He said the company's profit margin would likely rise between 5.5 percent and 6 percent this year from 2011. The appliance maker ultimately hopes to boost profit margins to approximately 8 percent, according to Fettig.

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