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That's four things for Whirlpool Corp. (WHR)
This was part of the message that CEO Marc Bitzer told at a conference call on Tuesday, July 24, after the release of disappointing results in the second quarter of 2018.
However, investors reacted losses on earnings per share and revenue forecasts and reductions in scale, with shares falling 13.7% in the late morning to $ 130.04. Bitzer said the major contributors to the shortfall and the biggest business concerns in the future are the cost of steel and resin that go into making big boxes in the future. metal. which become washing machines, dryers, stoves and refrigerators, the stock and trade of the company. The other two important factors are freight, affected by the cost of fuel and the shortage of drivers in the trucking industry, and tariffs, including those imposed by President Donald Trump's administration on imports. of steel earlier this year
. Bitzer said the company had a bit of margin because it is negotiating annual contracts and has not been heavily affected this quarter, but the resins, used to make some devices, do not have annual contracts , which makes it more difficult to control costs. The company recorded a profit of $ 3.20 per share, against $ 3.69 for Wall Street and a $ 5.16 billion business, against $ 5.29 billion expected. Whirlpool, based in Benton Harbor, Mich., And makers of Whirlpool and Maytag appliances, revised its adjusted earnings per share for 2018 to between $ 14.20 and $ 14.80, down from its previous range of 14, $ 50 to $ 15.50. The company adjusted growth in its estimated business turnover to 1%, and earnings before interest and taxes to 6.9% from 7.5% previously. Michael Dahl, an analyst at LLC, wrote that sales and revenue were respectively 3% and 4% lower than RBC estimates.
Whirlpool stated that its North American operations recorded net sales of $ 2.8 billion, stable one year on the other. Sales decreased by 2.2%
. A truckers strike in Brazil has had an impact on the company's operations in Latin America, Bitzer said, adding that the country could be a weak spot ahead of the October general election. colonized. He added that Mexico was strong, but nonetheless, sales in Whirlpool Latin America declined 11.4% to $ 852 million, compared with $ 986 million in the same period in 2017.
Sales in Europe, at Middle East and Africa, excluding the impact Bitzer said that the UK and Russia were weak points, while France was strong and, to some extent, Italy and Italy. 39; Germany. Bitzer said the European division would get a new president in the coming quarters, but it will serve in that capacity until the hiring.
Asian sales rose 14.5 percent to $ 428 million from $ 373 million at this time last year.
Other than Whirlpool and Maytag, other Whirlpool brands include KitchenAid, Consul, Brastemp, Amana, Bauknecht, Jenn-Air and Indesit.
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