Whirlpool could take $1 billion revenue hit from strong dollar: CEO
By Nick Carey
CHICAGO (Reuters) - If the U.S. dollar stays at current levels, Whirlpool Corp's (WHR.N: Quote) revenue could take a hit of up $1 billion in 2015, but the world's largest appliance maker expects to protect its profits, Chief Executive Officer Jeff Fettig told Reuters on Wednesday.
Raising prices in some foreign markets should offset some of the effects of the strong dollar, which reduces the value of goods sold overseas, he said.
Fettig said Whirlpool would also benefit from lower commodity prices and cost reductions from restructuring its two recent acquisitions.
Earlier on Wednesday, Whirlpool reported 2014 revenue of $19.9 billion and said it expected sales in the U.S. market, its largest, to rise between 4 percent and 6 percent in 2015.
Fettig said there were a number of reasons to be optimistic about the U.S. market.
U.S. appliance sales peaked a decade ago, before the Great Recession. The average lifespan for many of the products Whirlpool makes - washers, dryers, cooktops, stoves and refrigerators - is also about 10 years.
"We're bumping up against replacement demand," Fettig said.
The U.S. housing market is in the middle of a multiyear housing recovery, Fettig said. "It still has a long way to go," he said, "but the market is recovering in a manageable way." Continued...