Appliance maker Whirlpool this week was forced to cut its full-year profit outlook after it suffered from troubles in Europe and grew increasingly concerned about tariffs.
Whirlpool suffered a whopping $657 million net loss in the second quarter, due in large part to a $747 million charge and it needing to pay $114 million to settle an antitrust lawsuit in France. The company also reported worse-than-expected performance in Europe due to challenging currency impacts.
Whirlpool also said on Monday that its raw material costs are rising due to tariffs. It expects to take on an additional $350 million in raw material costs this year compared to last year.
The move ultimately forced the company to slash its profit guidance by 3% to earnings per share of between $14.20 and $14.80. Whirlpool said that by the end of the year, it expects lower-than-expected revenue growth and for global inflation to rise more significantly than it had anticipated. Europe will continue to be a challenge, as well. Still, Whirlpool is putting a brave face on.
“We remain committed to our long-term value creation strategy, and will continue to fully invest in our business as we execute our balanced approach to capital allocation,” the company’s chief financial officer Jim Peters said in a statement.