It's four things for Whirlpool Corp. (WHR)
That was part of the message that CEO Marc Bitzer reported during a teleconference on Tuesday, July 24, after disappointing second quarter 2018 results
However, investors reacted to earnings per share shortfalls and Turnover and Shortened Predictions, as stocks fell 13.7% to $ 130.04 in late trading. The share fell by 22.9% in 2018 and by 31.5% last year.
Bitzer said the main contributions to the profit loss would be missing and the biggest concerns of the company are the costs of steel and resin needed to make the big metal boxes that will be washing machines, dryers, ovens and refrigerators, stocks and the Trading the company. The other two important factors are freight traffic, which is affected by fuel costs and a shortage of drivers in the trucking industry, as well as tariffs imposed on steel imports by President Donald Trump's government earlier this year
Bitzer The company has some cushion as it negotiates annual contracts and was not heavily affected during the quarter, but resins used to decorate some appliances do not have annual contracts, which makes it more difficult to curb costs. [1
In a statement from Monday, RBC Capital Markets LLC analyst Michael Dahl wrote that sales and sales were 3% and 4% lower than RBC's estimates.
Whirlpool said its North American operations generated $ 2.8 billion in net revenue year over year. Excluding currency effects, sales decreased by 2.2%.
A former trucker strike in Brazil affected business in Latin America, Bitzer said, predicting that the country could be a weak point until the October elections. He added that Mexico was strong, yet sales in Whirlpool Latin America fell by 11.4% to $ 852 million, compared to $ 986 million in the same period in 2017.
Sales in Europe, The Middle East and Africa without currency impact, fell 12.3%, with net sales of $ 1.1 billion, compared to $ 1.2 billion in 2017. Bitzer said Britain and Russia were weak spots while France was strong and to some extent also Italy and Germany. Bitzer said that the European department will get a new president in the next few quarters, but he will serve in this role until the time of recruitment.
Asian sales increased 14.5% to $ 428 million compared to $ 373 million last year.
Whirlpools other brands include Whirlpool and Maytag KitchenAid, Consul, Brastemp, Amana, Bauknecht, Jenn-Air and Indesit.