Whirlpool, accounts in deep red and layoffs on the way: in the first quarter sales fell by 8,1%

As predicted by analysts since the beginning of the year, i Whirlpool quarterly accounts they turned out heavily negative, with a worrying 8,1% drop in sales of large household appliances in North America, an area that accounts for more than half of the total. This decline was not compensated by the increase in revenues in South America (+12%) and Asia (+2,4%) while the trend in Europe was negative (-5%) but less severe than that on the market domestic. Ebit fell by 49,2%. Overall, the group recorded a decline in net sales of 3,4%, which fell from $4.649 million in the first quarter of 2023 to $4.490 in the same period of 2024.

With the European transaction closing on April 750, the company expects to generate more than $250 million in net present value of future cash flows and incremental cash flow of $300-2025 million in XNUMX. But the sales for the whole 2024 will continue to stagnant, if not even to drop further. The cause of this fall was the collapse of the real estate market, the increase in inflation which discouraged purchases of houses and appliances, especially fridges and washing machines, and the persistence of logistical and supply difficulties.

Whirlpool: layoffs coming

The company is looking to reduce expenses by about $400 million this year. Whirlpool has encountered bigger-than-expected hurdles due to rising labor, transportation and logistics costs. After a first cut of employees in America, the company is preparing to reduce its total workforce worldwide by approximately 2024 in 1.000. Whirlpool has cut discounts and promotions and even increased the price lists by 5%. The top management decided to find new products and above all to increase high-performance segments such as small household appliances, which, thanks to the good revenues of the subsidiary Kitchen Air, is growing. This segment will now be reported separately in financial reports. The company, also following repeated requests from shareholders, will invest more in this segment where Kitchen Aid's mixers and large food processors have always had excellent performances due to their high quality and real innovations.

Induction cooking and coffee machines

Therefore the group will expand the offer by investing in commercial joints to also sell the espresso machines European super-automatics. Whirlpool expects small appliances to be a business of about $1,3 billion in 2026, up from about $1 billion last year. The agreement, recently concluded with the German Bora for distribution in North America under the brand of the subsidiary Jenn Air, dei induction hobs with integrated extraction system - invented years ago by Bora - is part of the necessary product diversification program, with the inclusion of high-end models and European technologies.

In North America, for example, induction cooking is still in its infancy, just as energy labeling does not meet strict European environmental parameters. L'Energy Star American, in fact, is far from the European energy classes, being calibrated on very high consumption of water, electricity and detergents also because with the presidency of Donald Trump, under pressure from oil companies and energy multinationals, not only have the parameters not been updated but as many as 200 technical regulations of the EPA (the technical body for environmental standards) have been eliminated. And if Trump returns to the presidency, further deterioration is expected despite the growing demand from American consumers for less energy-intensive and less polluting appliances, i.e. European technology. The environmental retreat - as foreseen by Donald Trump's electoral program - also provides for the application of a tax of around 10% on all imported appliances.