Whirlpool Corporation (NYSE:WHR) took a bath on Tuesday after the home appliances manufacturer missed Wall Street’s forecasts with third quarter profits.
Underlying earnings per share came in at US$3.83, up from US$3.66 in the same period of last year but seven cents shy of the number investment analysts were expecting.
Net sales rose to US$5.42bn from US$5.24bn the year before; the consensus forecast on the Street was for turnover of US$5.49bn.
Whirlpool North America reported third-quarter net sales of US$3.0bn, up from US$2.9bn on the year before; adjusted for currency fluctuations, third quarter revenue was 4% higher this time round.
For the full-year, the company now expects to generate cash from operating activities of US$1.55bn to US$1.6bn and free cash flow of about US$900mln.
Earnings per share for 2017 are expected to fall in the range of US$13.60 to US$13.90.
"We reaffirm our 2020 goals and are confident that our existing and newly-announced actions will put us firmly back on track to deliver our commitments," said Jim Peters, executive vice president and chief financial officer of Whirlpool Corporation.
"As we continue to execute our plans for value creation, we will continue returning strong levels of cash to our shareholders," he added.
Meanwhile, it emerged on Tuesday that retailer Sears Holdings Corp (NASDAQ:SHLD) is to stop stocking Whirlpool products.
The retailer has been stocking Whirpool products for more than a century, but indicated that it would no longer be able to sell Whirlpool products at a competitive price if it acquiesced to the latest demands from the white goods maker.
Shares in Whirlpool were down more than 10% in pre-market trading. In the regullar session they shed 10.95%% to US$162.65.