Published on March 25th, 2020 | by The GC Team0
Whirlpool withdraws earlier guidance due to coronavirus impact
Whirlpool has withdrawn its previously announced guidance for 2020 due to COVID-19 driven demand disruptions and production impacts which are expected to continue to negatively affect results.
Given the rapidly evolving situation, the company said the first quarter financial impact may slightly exceed the its previous estimate of $25 – $40 million in earnings before interest and taxes.
“Over the past days, our global operating environment was faced with additional challenges and government ordered shutdowns, and we may face additional disruptions.”
- North America: Reductions in capacity at U.S. manufacturing facilities as adjustments are made in line with Centres for Disease Control and other regulatory guidelines.
- EMEA: Temporary suspension of operations at manufacturing facilities in Italy coupled with major logistics disruptions throughout the region.
- Latin America: Reductions in capacity at the Joinville, Brazil manufacturing facility, as adjustments are made in line with regulatory guidelines.
- Asia: Temporary suspension of operations at manufacturing and warehousing facilities in India while China production is now back to near full capacity.
The company said it has “a strong financial position and the liquidity required to continue operations during this volatile period”.
“Whirlpool is well prepared to successfully navigate through this difficult period. We have demonstrated strong fixed cost discipline, and initiated a large additional cost reduction initiative prior to the outbreak,” said Marc Bitzer, Chairman and CEO of Whirlpool Corporation.
“Over the years, we have made strategic decisions to strengthen our balance sheet and transform our company. We believe these actions, coupled with our strong ability to generate cash flow, have positioned us well to not only cope with the current crisis, but also to win in the economic recovery.”
Whirlpool plans to provide further information on the global impact of COVID-19 at its forthcoming earnings call, which is currently scheduled for 1st May 2020.