Whirlpool slashes annual guidance, seeing demand slowdown

Appliances maker Whirpool Corp. late Monday reported mixed second-quarter earnings and slashed its guidance for the year, saying the results came amid a “challenging environment” with rising costs and a demand slowdown.

Whirlpool
WHR,
-1.86%
said it lost $371 million, or $6.62 a share, swinging from earnings of $581 million, or $9.15 a share, in the year-ago period. It pinned the loss mostly on an one-off charge of $747 million related to losses from the sale of its Russia business.

Adjusted earnings came in at $5.97 a share “despite elevated cost inflation and demand slowdown,” the company said. Sales fell 4% to $5.1 billion from $5.3 billion a year ago, hit by supply-chain disruptions and demand cooling, offset in part by a favorable product price and mix, the maker said.

Analysts polled by FactSet expected adjusted earnings of $5.27 a share on sales of $5.2 billion. Shares of Whirlpool rose 2% in the extended session Monday after ending the regular trading day down 1.9%.

Whirlpool said it expects full-year 2022 revenue of about $20.7 billion, which would be a drop of about 6% from 2021 and contrasts with FactSet consensus calling for revenue of $21.8 billion for the year. When it reported first-quarter results in April, Whirlpool had called for 2022 net sales growth between 2% and 3%.

It slashed per-share GAAP earnings to between $9.50 and $11.50 for the year, from between $24 and $26, and to between $22 and $24 on an adjusted basis. Guidance had already been dialed down in April.

Shares of Whirlpool have lost 30% so far this year, compared with losses of 17% for the S&P 500 index
SPX,
+0.13%.

You May Also Like

Exclusive: Three possible outcomes for stalled tech-funding bill, according to its co-author

Rep. Ro Khanna had high hopes for a multibillion-dollar U.S. innovation bill…

BP takes 40% stake in vast $30bn Australian renewables project

BP has made one of its biggest renewable energy bets yet, acquiring…

US House panel seeks ban on federal purchases of Chinese drones

The House of Representatives’ China committee will introduce a bill on Wednesday…

The Moneyist: I received a $130,000 inheritance from my mother. My husband says it’s mine to spend. What should I do with it — and why do I feel so guilty?

‘It could do something wonderful for me, which would allow me to…