- Created: Wednesday, 25 July 2018 11:12
- Hits: 248
We sorta saw this one coming as tariffs on steel were announced by a certain US president but Whirlpool's problems seem a perfect storm of bad fortunes, literally.
So here's the potted version of what's going on, Whirlpool suffered a massive $657 million loss in the second quarter, due in part to a $747 million charge and it needing to pay $114 million to settle an antitrust lawsuit in France.
Whilst at the same time suffering poorer than expected performance in Europe due to challenging currency impacts. Which may well have to do with the general chaos here with Brexit etc.
Whirlpool also said on Monday that its raw material costs are rising due to tariffs and that the company expects to be hit with an additional $350 million in raw material costs this year compared to last year. Ouch!
All this has forced Whirlpool to slash its profit guidance by 3% to earnings per share of between $14.20 and $14.80. Whirlpool said that by the end of the year, it expects lower-than-expected revenue growth and for global inflation to rise more significantly than it had anticipated.
Whirlpool still thinks that Europe will continue to be a challenge and we don't see any end of that in sight until things settle down politically across the continent, Brexit only being one factor.
“We remain committed to our long-term value creation strategy, and will continue to fully invest in our business as we execute our balanced approach to capital allocation,” the company’s chief financial officer Jim Peters said in a statement.