Whirlpool might have done okay in it's home market of the USA but increases there are not compensating for the tanking in other regions with profits from dipping lower during the second quarter, and the Whirlpool has lowered its earnings guidance, blaming rising raw-material inflation and slow Chinese and European markets.
Probably as a result of that Whirlpool’s shares fell 4% on Wednesday after its results for the three months ending June 30 look not to have impressed Wall Street.
The reported net income of $189m fell well short of the $228.4m that analysts had expected, and is nearly half the $320m profit seen in the same period a year earlier.
Revenue for the quarter was slightly higher to $5.3bn from $5.2bn a year earlier which is reported as being in line with expectations. Sales were boosted by a strong showing in Whirlpool’s biggest market in North America, where they increased 9%.
But sales in Europe, the Middle East and Africa (EMEA) fell by 5%, alongside a 1% dip in Latin America and stagnant sales in Asia.
And no, that dip in the EMEA region is not solely down to the woes we've seen with tumble dryers etc here in the UK but we think more a general slowdown in the region coupled with increased pressure from the Turkish manufacturers.
Whirlpool have blamed the impact of rising raw-material costs alongside the unfavourable product and/or pricing mix in some markets for the slide, but it said that it was buoyed by the growth in North America.
Whether that trend will continue with Amazon entering the appliance sales business in the US in a tie-up with Sears remains to be seen but, a lot of people in the industry are concerned by this move and in our opinion, it will probably only serve to commoditise the industry yet more than it is already.