Published on July 24th, 2018 | by The GC Team0
EMEA region shafts Whirlpool
Whirlpool Corporation has reported second-quarter sales down from $5.35 billion to $5.14 billion and a loss of $657 million compared to a profit of $189 million in the same quarter last year.
The company said its results were negatively impacted by approximately $860 million, which included asset impairment charges related to Whirlpool Europe, Middle East and Africa and a preliminary settlement with the French Competition Authority.
Following a weak performance in the EMEA area, Whirlpool said it is taking “strong actions” to restore profitability in the second half of 2018.
The region reported second-quarter net sales of $1.1 billion, compared to $1.2 billion in the same prior-year period. Excluding the impact of currency, sales decreased 12.3%.
A second-quarter EBIT loss of $25 million was recorded, compared to a loss of $2 million in the same prior-year period. Whirlpool said the favourable impacts of product price/mix and restructuring benefits were more than offset by unit volume declines, raw material inflation and unfavourable foreign currency impacts.
In its outlook for the full-year 2018 the company revised its adjusted profits downwards, stating that favourable product price/mix and share repurchases are expected to be more than offset by lower global revenue growth, increased expectations for global cost inflation, and weaker than expected performance in the EMEA region.
Whirlpool now expects ongoing earnings per diluted share of $14.20 to $14.80.