Whirlpool 2Q Sales Fall on Weaker Demand in North America

Dow Jones08-04
 

Whirlpool's quarterly sales declined due to weaker demand in North America.

The Michigan-based maker of household appliances including refrigerators and washing machines also on Monday cut its full-year earnings outlook, citing a new interest expense outlook.

Second-quarter sales fell 6.8% to $3.52 billion. Analysts polled by FactSet had projected $3.55 billion.

Organic sales-which strips out the effects of acquisitions, divestitures and currency effects, including the sale of Whirlpool's India business-ticked down 1.7%. The decrease was driven by softer industry demand in North America and promotional intensity in Latin America, the company said.

Second-quarter profit came in at $75 million, compared with $65 million. On a per share basis, earnings were $1.15, compared with $1.17 a year earlier.

Adjusted loss per share was 21 cents. Analysts polled by FactSet projected an adjusted loss of 6 cents a share.

Whirlpool said the results were in line with its expectations, despite what it called persistent economic challenges.

The company said in May it would hike prices by double-digits, and halt its quarterly dividend, as part of an effort to return to profitability in its North America business. The company said at the time that the war in Iran was driving down consumer confidence, adding to pressure from an anemic housing market and sapping demand for its appliances.

For the full year, Whirlpool now expects adjusted earnings per share of $2.50 to $3, compared with its prior outlook of $3 to $3.50, reflecting a new interest expense outlook, the company said. The company now projects earnings per share of $2.25 to $2.75, compared with $2.45 to $2.95 previously.

Whirlpool continues to forecast sales of $15 billion for the year.

 
 

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment