Whirlpool in the US Falls Behind LG, Lowers This Year's Performance Outlook Due to Inflation Impact

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[Asia Economy Reporter Jeong Hyunjin] American home appliance company Whirlpool has lowered its performance outlook for this year. This is due to a sharp decline in demand for home appliances amid the worst inflation in over 40 years in the United States.

According to Bloomberg and other sources on the 25th (local time), Whirlpool forecasted its operating earnings per share for this year to be $22 to $24, about $2 lower than initially expected. The company also revised its sales forecast from a 3% increase compared to the previous year to a 6% decrease.

Whirlpool's second-quarter sales were $5.1 billion, down 4.3% year-on-year, falling short of market expectations of $5.2 billion. The company explained that sales declined due to supply chain issues and weakening demand, but price increases helped to relatively reduce the decline. Sales in Whirlpool's largest market, North America, fell short of $3 billion, and sales in Europe, the Middle East, and Africa were affected by the Ukraine war.

Joe Liotine, Whirlpool's Chief Operating Officer (COO), stated that rising inflation has caused budget issues for consumers, reducing interest in home appliances, and the U.S. housing market is also slowing down. While supply chain problems are somewhat resolving, there are still difficulties with some parts.

Jim Peters, Whirlpool's Chief Financial Officer (CFO), said, "The decline in (consumer) demand is happening faster than initially expected," adding that demand is expected to remain suppressed through this year but that there is replacement demand for aging appliances, which could be positive in the mid to long term.

However, Bloomberg reported that Whirlpool's downward guidance revision is less severe than the market initially expected. As a result, after the guidance was announced following the market close, Whirlpool's stock price rose nearly 2% in after-hours trading.

American home appliance company Whirlpool lost its position as the world's number one home appliance maker to LG Electronics for the first time last year. The gap between Whirlpool and LG Electronics widened further in the first quarter of this year, with Whirlpool struggling due to inflation and cost pressures from rising raw material prices. CFO Peters said the peak of cost increases could come in the third quarter of this year.

This content was produced with the assistance of AI translation services.