Whirlpool shares slide on pricing, forex concerns
By Meredith Davis
(Reuters) - Shares of Whirlpool Corp WHR.N tumbled on Friday on concerns about price cuts by rival appliance makers and the strong dollar's impact on foreign revenue.
Promotional pricing and deep discounts by some foreign competitors eroded market share in the third quarter, President and Chief Operating Officer Marc Bitzer said on a conference call following Whirlpool's third-quarter earnings report.
"Nobody wants to hear about pricing getting more competitive in any kind of retail environment," analyst Megan McGrath at MKM Partners said. "Typically it is not a good sign for the health of the industry and the impact on the top line and the potential for margins."
Executives on the call did not detail how they plan to regain market share, McGrath noted.
Whirlpool shares fell 7.92 percent to $147.15.
Chief Executive Jeff Fettig told analysts that rapid currency depreciation, including those of Brazil, Canada, Russia and the European Union, would reduce 2015 annual sales by about $2.5 billion.
Fettig also said declining demand in Brazil, China, Russia and Ukraine would reduce annual sales by about $900 million.
Whirlpool, the world's largest appliance maker, lowered its forecast for 2015 earnings per share but third quarter earnings were higher than expected. Continued...