Whirlpool Reaffirms 2016 Outlook After Brexit Bruises its Share Price
June 28 2016 - 7:30AM
Dow Jones News
Whirlpool Corp. on Tuesday backed its earnings forecast for
2016, an attempt to ease investor worries after its stock had
fallen sharply in the wake of the U.K.'s vote last week to leave
the European Union.
"Clearly the 'Brexit' vote has created a number of
uncertainties, many that will take some time to play out,"
Whirlpool Chairman and Chief Executive Jeff M. Fettig said. He
added that the company will "monitor the situation closely" and is
"prepared to take swift actions to offset the negative impact" to
its operations in the region.
The Benton Harbor, Mich.-based company noted that its business
in the U.K. represented roughly 5% of its global revenues in 2015,
and that most of its products sold there were produced in other
European countries.
Whirlpool's results have been pressured by a stronger dollar,
which makes its appliances more expensive abroad, and in April the
company reported revenue and profit declines in its latest period
as weakness abroad offset gains in the U.S. The British pound early
Tuesday rose 0.8% against the dollar to $1.332, though it remained
near a three-decade low reached Monday in the wake of the Brexit
decision.
Whirlpool's stock has fallen about 14% from its closing price of
$178.80 on Thursday, before results from the U.K. vote came in.
Shares were inactive in premarket trading Tuesday from Monday's
close at $154.46.
The company reaffirmed its full-year adjusted profit outlook
range of $14 to $14.75 a share. Analysts polled by Thomson Reuters
projected $14.75 a share.
Write to Joshua Jamerson at joshua.jamerson@wsj.com
(END) Dow Jones Newswires
June 28, 2016 08:15 ET (12:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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