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 Promotional pricing and deep discounts by some foreign competitors
eroded market share in the third quarter, President and Chief
Operating Officer Marc Bitzer said on a conference call following
Whirlpool's third-quarter earnings report.
"Nobody wants to hear about pricing getting more competitive in any
kind of retail environment," analyst Megan McGrath at MKM Partners
said. "Typically it is not a good sign for the health of the
industry and the impact on the top line and the potential for
margins."
Executives on the call did not detail how they plan to regain market
share, McGrath noted.
Whirlpool shares fell 7.92 percent to $147.15.
Chief Executive Jeff Fettig told analysts that rapid currency
depreciation, including those of Brazil, Canada, Russia and the
European Union, would reduce 2015 annual sales by about $2.5
billion.
Fettig also said declining demand in Brazil, China, Russia and
Ukraine would reduce annual sales by about $900 million.
Whirlpool, the world's largest appliance maker, lowered its forecast
for 2015 earnings per share but third quarter earnings were higher
than expected.
Whirlpool revised its full-year outlook for ongoing business
earnings to $12 to $12.50 per diluted share from $12 to $13.
Analysts had estimated $11.96, according to Thomson Reuters data.
The revised outlook was "undoubtedly" better than expected, RBC
Capital Markets analyst Robert Wetenhall said.
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The company said changes in the 2015 outlook reflected weaker sales
in Latin America, the stronger U.S. dollar and an effort to improve
margins.
Overall, third-quarter sales jumped 9 percent to $5.3 billion from
$4.8 billion a year ago, slightly below expectations of $5.41
billion.
The company lowered its estimated 2015 full-year capital spending to
a range of $700 million to $750 million, down from a previously
forecast $750 million to $800 million.
The company posted a higher quarterly net profit of $235 million, up
from $230 million a year ago, citing cost and capacity cuts,
acquisitions, and a favorable price mix.
Its ongoing business earnings per diluted share rose to $3.45 from
$3.04, beating the $3.29 expected by analysts.
(Reporting by Meredith Davis; Editing by Richard Chang)
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