The company, the world’s biggest appliance maker, also on Friday cut its 2011 earnings outlook drastically and reported third-quarter results that missed expectations, hurt by higher costs and a slowdown in emerging markets.
The company, whose brands include Maytag and KitchenAid, has been squeezed by weak American demand since the recession and by rising costs for materials. Because of Whirlpool’s size, its performance can signal whether consumers are comfortable spending on big-ticket items.
To offset slowing North American sales, Whirlpool has turned to emerging markets. But the company said Friday that sales had slowed there, too.
The Whirlpool jobs to be cut are mostly in North America and Europe. They include 1,200 salaried positions and the closing of the company’s Fort Smith, Ark., plant.
The shutdown of the Fort Smith plant will affect 884 hourly workers and 90 salaried employees. An additional 800 workers were on layoff from the factory and on a recall list.
The company’s third-quarter net income more than doubled to $177 million, or $2.27 a share, from $79 million, or $1.02 a share. Revenue rose 2 percent to $4.63 billion.
“Our results were negatively impacted by recessionary demand levels in developed countries, a slowdown in emerging markets and high levels of inflation in material costs,” said Jeff Fettig, Whirlpool’s chief executive.
The company now expects 2011 net income will be $4.75 to $5.25 a share. Its previous guidance was that net income would be at the low end of $7.25 to $8.25 a share.
Shares of Whirlpool fell 14 percent, to close at $51.80.
Article source: http://feeds.nytimes.com/click.phdo?i=3aad217a4a31b06fbab48de1ed5dda91
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