Business

Whirlpool shares hit by 5,000 job losses

Whirlpool Corp.

Last Updated at 20 Feb 2018, 20:58 GMT *Chart shows local time Whirlpool Corp. intraday chart
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Shares in Whirlpool have fallen sharply after the US appliance giant announced 5,000 job cuts and slashed its full-year profit forecast.

Shares fell almost 15% after the company said it would reduce its workforce by 10% and cut production due to weak consumer demand.

These measures would save $400m (£248m) by the end of 2013, the firm said.

Tax credits helped to boost net profits to $177m in the third quarter, but sales fell slightly to $2.4bn.

'Aggressive plans'

Whirlpool's chief executive Jeff Fetig said the quarterly results were "negatively impacted by recessionary demand levels in developed countries, a slowdown in emerging markets and high levels of inflation in material costs".

These factors meant the company would make less money in the current financial year, it said. Earnings per share would be between $4.75 and $5.25, compared with the previous estimate of between $7.25 and $8.25.

"Given the weakening global economic environment, we are today announcing aggressive plans that will result in substantial cost and capacity reductions," Mr Fetig said.

The job and production cuts, together with recently-announced price increases and new product launches would, he said, deliver "long-term value" to shareholders.

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