Company primed for housing market recovery
By Alan Wolf, YSN
Whirlpool said a 5% promotional program put in place last April helped turn its price/mix positive during the back-half of its second quarter, boosting North American margins for the second consecutive reporting period.
Aided by the manufacturer’s ongoing cost reductions, which are on target to top $300 million companywide, EBIT* margin reached 6.3% for the three months ended June 30, up 0.8 points from the prior quarter.
Soft Sales
Nevertheless, the “unfavorable market environment” in North America, and the limited effectiveness of price promotions during a period dominated by replacement purchases, contributed to a 5.6% decline in net sales for the region, the company said.
All told, “Our solid Q2 results and actions put us firmly on track towards expanding our margins sequentially throughout 2024,” said Whirlpool Chairman/CEO Marc Bitzer. This, he added, is setting up our business well for the eventual recovery of the U.S. housing market.”
Specifically, Bitzer said Whirlpool’s industry-best brand and product portfolio, plus significant opportunities for further cost reductions, position it well for growth and further margin expansion in North America. Taken together, he said, the company “will benefit disproportionately” from the delayed U.S. housing recovery.
*Earnings before interest and taxes
