Tags: whirlpool | earnings | profit | forecast

Whirlpool Disappoints Investors with Profit Forecast

Whirlpool Disappoints Investors with Profit Forecast
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Wednesday, 24 January 2018 05:38 PM

Whirlpool Corp. delivered a disappointing earnings forecast on Wednesday, undercutting some of its momentum after a trade victory earlier this week.

The appliance maker expects earnings of $14.50 to $15.50 a share this year, excluding some items. That fell short of the $15.56 analysts were predicting.

The outlook suggests that Whirlpool’s business is still in the spin cycle following setbacks on several fronts. The company has seen its cost of materials rise at a time when consumers are gravitating toward lower-priced machines. It also ended a century-old partnership with the ailing Sears Holdings Corp. in October, and Whirlpool has struggled to digest its acquisition of Italy’s Indesit SpA business.

The shares fell as much as 5.9 percent to $168.50 in late trading immediately after the forecast was released, though they later pared the losses. The stock was up 6.1 percent this year through Wednesday’s close.

Whirlpool received good news earlier this week when the Trump administration imposed a tariff of up to 50 percent on large residential washing machines, a penalty aimed at imports from rivals Samsung Electronics Co. and LG Electronics Inc. Whirlpool, based in Benton Harbor, Michigan, said it would add domestic manufacturing jobs in the wake of the move.

Trade and domestic manufacturing were signature issues in Donald Trump’s campaign for the White House, and Chief Executive Officer Jeff Fettig served as a member of the president’s now-disbanded manufacturing council.

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Whirlpool Corp. delivered a disappointing earnings forecast on Wednesday, undercutting some of its momentum after a trade victory earlier this week.
whirlpool, earnings, profit, forecast
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2018-38-24
Wednesday, 24 January 2018 05:38 PM
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