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Whirlpool Sees Signs of Recovery; U.S. Factory Activity Expands; Anduril Eyes Drone-Boat Site By Mark R. Long | WSJ Logistics Report
Whirlpool in recent years abandoned its globe-spanning ambitions to focus on the more profitable Americas, primarily the U.S. That tied its fortunes to the domestic housing market , in a slump for over three years, with appliance buyers seeking lower prices, The Wall Street Journal's John Keilman writes.
The company's global competitors have also dug into North America, hitting its market share. Whirlpool's revenue and profits have slid since the pandemic, and that trend continued in the second quarter. Net sales dropped nearly 7%
year-over-year, while it took an adjusted loss of 21 cents a share.
Both figures were an improvement over the first quarter, however, and Whirlpool's CEO says that indicates its comeback strategy-centered on new products, higher prices and lower costs-is starting to bear fruit.
To cut costs, the company has slashed its global workforce nearly in half over the past five years, mostly from leaving foreign markets. Whirlpool also is counting on a 25% tariff on imported appliances
to force its foreign competitors to raise prices, too. So far, it says, they are.
Clorox expects a challenging fiscal year ahead as inflation and value-seeking consumers are projected to offset recent cost savings . (WSJ) CONTENT FROM: PENSKE Gain Intel. Gain Ground with Penske.
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Economy
U.S. factory activity expanded past expectations in the U.S in July, growing at its fastest rate in more than four years , according to a survey of manufacturing firms.
The ISM's purchasing managers' index was 55.6 in July compared with 53.3 in June. The new orders index expanded for the seventh consecutive month after four straight readings in contraction. The prices index remained in expansion, but fell from June's figure. The backlog of orders index was up from June.
Chinese manufacturing activity expanded at a slower pace in July, according to a private gauge . That came after the government's official manufacturing purchasing managers index showed a contraction in activity in July for the first time in five months.
Number of the Day Shipbuilding
Anduril Industries is in advanced talks with a Maryland port to build out a production site for the company's drone boats , people familiar with the matter said, as growing military demand for autonomous sea vessels grows.
The WSJ's Heather Somerville and Scott Calvert write that Southern California-based Anduril has signed a memorandum of understanding with the operators of the historic Sparrows Point yard, a 3,300-acre industrial site in Baltimore County. It has a deep-water port and a rich history of shipbuilding and steel manufacturing.
Anduril's investment in building out a portion of the site for unmanned surface vessel, or USV, production could be in the hundreds of millions of dollars, the people said. The operation would involve manufacturing and testing the boats. Anduril hasn't signed a lease, and the people cautioned that deal talks could still unravel.
South Korea's HMM and its Washington United Terminals unit will spend $135 million over two years to boost handling capacity
at the Port of Tacoma by about 50%. (Journal of Commerce) In Other News Iran said there weren't any talks with the U.S.
under way or planned, after President Trump said he called off a major military strike. (WSJ) Traffic through the Strait of Hormuz remained slow, with an average of 14 transits a day, roughly 10% of the pre-war level , between Friday and Sunday, according to Kpler. (WSJ) A severe drought has lowered water levels in major European rivers such as the Danube and Rhine, disrupting shipping and power generation . (WSJ) Matson said it expects its full-year ocean transportation operating income
to be higher than last year's $455.6 million, as the U.S. carrier posted quarterly revenue ahead of Wall Street estimates. Tyson Foods lowered its profit outlook
for the year because of soaring cattle prices. (WSJ) Boeing's 737 MAX 7, the smallest jet in the plane maker's narrow-body family, won certification
from federal air-safety regulators. (WSJ) Northrop Grumman signed two agreements totaling $3 billion to speed up production
of missile interceptors. (WSJ) Volvo Car said global sales fell 4% on year
in the three months through July, dragged lower by the challenging market in China. (WSJ) Nissan Motor reiterated its annual earnings forecasts as it posted its first quarterly net profit in two years , though it reduced its vehicle sales expectations. (WSJ) U.S.-listed Atkore said it agreed to be bought by Italy's Prysmian, in a deal that values the manufacturer of electrical infrastructure products
at around $3.8 billion, including debt. (WSJ) Prologis agreed to buy U.K. rival Segro for around $18.8 billion , the companies said, in a deal that bulks up the U.S. warehouse landlord's European footprint. (WSJ) Prologis said it extended its partnership
with Fulfillment IQ to help supply-chain businesses adopt AI and accelerate automation. (DC Velocity) CMA CGM ended its pursuit
of a 49% stake in Rail Logistics Europe, or RLE, the freight business of French state railway SNCF. (RailFreight.com) Rivian said Amazon has more than 40,000 of its electric delivery vans
in service, up from over 30,000 at the end of last year. (SupplyChain24/7) Daimler Truck North America will end operations at a Portland, Ore., factory and move the site's production
to plants in the Carolinas. (TruckingDive) STG Logistics agreed to pay at least $2.8 million to settle allegations it misclassified
hundreds of truckers as independent contractors. (NJBIZ) About Us
Mark R. Long is editor of WSJ Logistics Report. Reach him at [mark.long@wsj.com]. Follow the WSJ Logistics Report team on LinkedIn: Mark R. Long , Liz Young and Paul Berger .
This article is a text version of a Wall Street Journal newsletter published earlier today.
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