Adjusted earnings per share will be about US$12 this year, the company said, down from the US$13 to US$15 it had previously seen. — Bloomberg
NEW YORK: Whirlpool Corp, the owner of Maytag, has lowered its full-year earnings forecast, as consumers continued to shy away from big-ticket appliance purchases amid a weakening housing market.
Adjusted earnings per share will be about US$12 this year, the company said, down from the US$13 to US$15 it had previously seen.
Analysts had estimated US$12.56, according to the average of projections compiled by Bloomberg. The company kept its full-year revenue estimate the same, at US$16.9bil.
Whirlpool’s net sales came in just above analysts’ estimates for the quarter ended June 30.
But revenue for major appliances in North America fell 5.7% from the same period last year as demand slumped for large items such as washing machines and ranges.
The company’s discretionary business – where consumers upgrade to new appliances – has been hurt by high prices and weak home sales, although some may be shifting to home renovations.
“You have a consumer who’s somewhere navigating between inflation, interest rate increases, global wars and an election campaign which seems to be played on doomsday scenarios.
“So that does not help consumer confidence,” Whirlpool chief executive officer Marc Bitzer said in an interview.
“It is visible in what we call the discretionary side of demand,” he said. “It’s a big-ticket item, a big part of disposable income.” — Bloomberg
