Appliance brand Whirlpool has announced improved performance and profits in the second quarter of 2023, in a move towards a “higher margin” business.
The group achieved net sales of $4,792million in the second quarter, an increase of 3.1% on the first quarter of 2023, but was down 6% on the same period in 2022.
Chairman and chief executive Marc Bitzer commented: “We continue to build on our momentum with sequentially improved margins in Q2.
“Our portfolio transformation towards a higher growth, higher margin business is well underway, and we are well-positioned to benefit form housing driven demand recovery, including now having eight of the top 10 US national trade customers.”
The sales decline has been attributed to the normalising of business to near pre-pandemic levels, partially offset by the addition of the InSinkErator business, and lower demand in Europe.
In Europe, Middle East and Africa, net sales declined 3.9% in the second quarter and dropped 15.3% year-on-year.
However, for the Whirlpool Group EBIT saw growth of 40.2% up to $352million in the second quarter but was down 23.6% on the same time period last year.
Whereas EBIT in Europe, Middle East and Africa grew 240% in the second quarter of 2023 to $17million, with a 750% increase from the same time period in 2022.
According to Whirlpool the sequential EBIT growth of the group is due to a favourable price/mix and cost take out actions.
Chief financial officer of Whirlpool Corporation Jim Peters stated: “Our cost take out actions of $800-$900million are fully on track, delivering $150million benefit in the quarter.
“These actions, combined with our healthy balance sheet, give us confidence in reaffirming our full-year EPS and free cash flow guidance as we continue to fund innovation and growth, while returning cash to shareholders.”
Whirlpool Group’s full year expectations for 2023 is net sales of approximately $19.4billion.