Despite strong third quarter results, shares in the world’s leading electrical appliance-maker Whirlpool (WHR:NYSE) tumbled 20% last week to their lowest since the pandemic after the Michigan-based manufacturer lowered its full year earnings target.Revenue and earnings were well ahead of estimates thanks to market share gains, but analysts at Raymond James flagged price and mix sales headwinds as well as a tax benefit which boosted profits, while the company’s full-year guidance hinted at continuing pressure and an earnings miss to come in the fourth quarter.

Shares in Europe’s biggest appliance-maker Electrolux (ELUX-B:STO) slid to their lowest since 2012 after the Swedish firm posted sales and operating profits well below market forecasts citing ‘continued weak market demand and consumers shifting to lower price points’.

The firm said promotions had returned ‘to a high level’
as it faced increased competition from rivals such as China’s Midea, while its cost-saving programme was yet to bear fruit.

Analysts at JPMorgan cast doubt over the fourth-quarter outlook and questioned how much of the cost savings would be ploughed back into promotions to generate sales rather than flowing to profits.

‹ Previous2023-11-02Next ›