No honeymoon for Bush:
A much-sharper-than-expected decline in industry shipments to retailers has prompted Whirlpool Corp. to slash its fourth-quarter earnings estimates, cut possibly 10% of its global work force and take $300 million or more in restructuring charges.
The Benton Harbor, Mich., appliance maker now expects it will earn roughly 98 cents a diluted share in the quarter, instead of the $1.45 to $1.55 it had forecast just two months ago. The company said earnings for the first quarter of next year will also be about 98 cents a share.
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The appliance industry has been rapidly eroding, especially in North America, which accounts for nearly 60% of Whirlpool's sales. The company expects unit shipments in the entire North American market to be down 7% to 8% in the fourth quarter from the same period last year. Previously, Whirlpool had predicted a decline in industry shipments of only 2% to 3%.
Mr. Whitwam attributed much of this drop to declining consumer confidence in the U.S. "People pull in their horns," he said in an interview, and some consumers may be reluctant to buy big-ticket items like the company's washer, which can cost $1,200.
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He also said the falloff in demand in the U.S., which he called "abrupt, almost overnight,...."
interactive2.wsj.com
Better get cracking on that tax cut Mr. Bush. |
