Whirlpool Corporation announced their third quarter earnings this week and while they sold $4 billion in appliances, sales were still not as robust as company executives would like to see.
The biggest market for Whirlpool Corporation is North America – largely fueled by consumers in the United States. In a conference call with investors and reporters held Thursday morning, CEO Marc Bitzer said part of the problem is negative consumer sentiment connected to the looming election.
“Anybody living in the US, you’re exposed to negative news every day and negative messages every day. And that does not lift consumer sentiment,” said Bitzer. “Now, the good news is, or hopefully the good news is, in prior elections, we saw pretty quick recovery of consumer sentiment once the elections were over, irrespective of outcome.”
The company reported sales in the third quarter were approximately 19 percent lower year-over-year — largely due to weak demand and the sale of their European operations.
On a brighter note for Whirlpool, Bitzer said the cost cuts they executed earlier this year — reducing headcount by more than a thousand jobs — are starting to pay off and that will continue into the fourth quarter. He added that one area where more cost will need to be absorbed is in the factories where higher production is anticipated as inventory levels normalize.
