Whirlpool Corporation (NYSE:WHR) announced its lower-than-expected second-quarter earnings, missing on earnings and revenue.
The home appliances manufacturer reported earnings of US$3.20 per share on revenue of US$5.1bn compared with US$3.35 EPS on revenue of US$5.35bn in the previous year’s second quarter.
The Michigan-based company fell below Wall Street estimates of US$3.80 EPS on revenue of $5.35bn.
For the year ahead, the company expects earnings between US$14.20 and US$14.80, below analyst expectations of US$15.63.
READ: Whirlpool shares fall after lower-than-expected first quarter earnings
While margins were strong in North America, Bitzer said the company’s performance in Europe, the Middle East, and Africa was “below expectations,” as per a press release.
Whirlpool net sales in the region Europe, Middle East and Africa totaled US$1.1bn, compared with US$1.2bn in the year-ago period.
“As a result, we are taking strong actions to improve our operational execution and remain confident that we will deliver value for our shareholders in the coming quarters,” he added.
Shares of Whirlpool sank more than 8% in Monday after-hours trading and continued to fall, down 9.3% to US$14.03 in Tuesday's pre-market action.
Tariffs take Whirlpool to the cleaners
Shares of Whirlpool shot up in January after the Trump Administration announced new tariffs on imported washing machines.
Its rivals LG Electronics Inc and Samsung Electronics Co Ltd were hit especially hard by the tariffs.
READ: China's tariffs on US goods to weigh on several US industries
“This is, without any doubt, a positive catalyst for Whirlpool,” said CEO Marc Bitzer on an investor conference call.
However, the tides turned as the trade war continued. The rising prices of steel and aluminum are increasing the production cost of its machines.
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