Despite a slight dip in Q3 profits over the previous quarter, Whirlpool has seen a meteoric rise year-on-year, with healthy growth in net sales.
As revealed in its Q3 financial results, Whirlpool reported an earnings before income tax figure of $322 million (£265m) – an increase of over 21.5% on its Q3 figure of $265m (£211m) from last year.
Similar earning booms have been reported by other KBB suppliers this quarter, such as Masco and BSH UK, with the latter admitting its extraordinary financial earnings were likely the result of price rises across its product portfolio.
However, despite this massive earnings boost, the Q3 figure is down by over 8% from the Q2 result of $352m.
Net sales for Q3 were $4.92billion (£4.06bn), which is an almost 3% increase over last quarter’s figures. The figure is also up by a similar 3% over Whirlpool’s year-on-year Q3 figure, which was $4.78bn.
In the Europe, Middle East and Africa region, sales for Q3 2023 were 1.1% down on Q2 at $863 million and 4.4% down on Q3 of 2022. Pre-tax profits took a massive hit, however, plummeting from $17m in Q2 to just $1m in Q3, although that was a big improvement over the $28m loss seen in Q2 of 2022. Continued weak demand in Europe was cited as a contributing factor.
Whirlpool Corporation’s chief financial officer, Jim Peters, commented: “Our cost take out actions are on track to deliver over $800m, as expected, delivering approximately $300m benefit this quarter.
“These actions, combined with our value creating portfolio transformation, gives us the confidence to continue to fund innovation, growth, and shareholders returns.”
The Q3 report also featured an update on Whirlpool Corporation’s upcoming business transaction with Arçelik – which is currently being investigated by the UK Competition and Markets Authority. Following the transaction being officially approved by the EU commission, Whirlpool says it is “working diligently with all parties to close the transaction as soon as possible”, and is offering an expected deal closure date of April 2024.