Whirlpool reported another mixed quarter as inflation and falling demand in North America took a toll.
“What is new and different is the increasing inflationary environment that occurred in the second to third quarter, as well as the impact of volume deleveraging that is driven by the weaker demand we have in the North American industry,” Whirlpool CFO Roxanne Warner told Yahoo Finance, adding that the team is focused on what it can control.
In the third quarter, the company reported revenue down nearly 9%, to $3.68 billion, which was below estimates of $3.91 billion. The company reported an adjusted loss per share of $0.21, lower than the adjusted earnings per share estimate of $0.76, according to Bloomberg consensus data.
Warner said the industry had not caught up with “the full impact of inflationary pressures from 2022”, with inflation up 12% since then.
That’s why the company plans to raise prices for the third time this year, now by 7% in the fourth quarter. This follows its largest price increase in history in April, at 10%, and a 4% increase in its list prices in July.
Major appliance revenue at its North America business fell 8.3% year-over-year to $2.5 billion, below Wall Street expectations.
Whirlpool’s small appliances business fell nearly 1%, to $286 million, below the $314 million expected. However, the company said that in the third quarter, some items were sold out, leading to about 40% year-over-year growth in U.S. orders in October.
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