Whirlpool sales top estimates as US drives market gains

WHIRLPOOL’s third-quarter results surpassed analysts’ estimates as strength in North America helped buoy results, offsetting weakness in Europe and Asia. The shares fell, however, after the Maytag owner trimmed its full-year profit outlook.

Net sales grew 3 per cent to US$4.93 billion in the period from a year earlier, the owner of Maytag said on Wednesday (Oct 25). Analysts had estimated US$4.81 billion, according to data compiled by Bloomberg. Adjusted earnings were US$5.45 a share, above the average estimate. The business was helped by market share gains and new items in North America, where the company gets the majority of its sales.

“The biggest things have come around some of our new product launches,” chief financial officer Jim Peters said. He added that a new dishwasher with a third rack and washers and dryers with special filters for pet hair have helped to propel market gains.

Supply disruptions have stabilised and that’s also helping the business, Peters said. Meanwhile, some shoppers are switching to less-expensive items in the US amid higher levels of inflation, he added. Consumers are more likely to trade down when an appliance breaks versus doing a home remodel, he said.

Adjusted earnings are now expected to be about US$16 a share for the full year, Whirlpool said in its earnings statement. That’s below the average analyst estimate of US$16.17, and it’s the low end of the previously projected range of US$16 to US$18.

The appliance seller said results were weighed down by demand weakness in Europe and soft consumer sentiment in Asia. It reported “strong share gains and industry recovery” in Brazil and Mexico.

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The shares slipped 3 per cent at 4.34 pm in late trading in New York. The stock has declined 11 per cent this year till Wednesday’s close. BLOOMBERG