LG announced third-quarter 2022 financial results, reporting revenue of KRW 21.2 trillion and operating profit of KRW 746.6 billion
.LG Electronics’ home appliance business unit contributed 228.3 billion won in operating profit, a significant drop from last year which it attributed to marketing and logistics costs
3 2022 earnings call with investors, Whirlpool also commented on the announced review of its EMEA (Europe, Middle East and Africa) strategy. The company reported that a total of ten entities have expressed interest in this part of its business, two of which are currently potential investors. Whirlpool is now evaluating offers. It has been emphasized that this is a sale of “EMEA” as a whole and in no case will there be a sale to multiple entities piecemeal. In any case, the entire strategic review has reached its final stage, and the decision may be announced in the near future. However, Whirlpool has not yet announced anything concrete. Whether there is a possibility of some form of joint venture is not known. The official statement mentions two strategic investors. It is important to mention that the option is still in play, that no sale will ultimately take place and Whirpool will continue manufacturing in Europe. The company is ready for this option.
Third quarter in the red
As for the results themselves, they are significantly affected by the sale of Whirlpool’s assets in Russia to the Turkish Arçelik. The geopolitical situation and the fading of covid do not wish much for appliance sales this year. The 12.8% drop in sales isn’t much of a surprise. Whirlpool cut production by 35% in the third quarter because of this. On the other hand, the whole year 2022 will not be bad for Whirlpool by any means, as the company expects the second best result in its history
The South Korean company for the production of equipment LG may close a plant in the Moscow region (produces refrigerators, washing machines and televisions) and move production to Uzbekistan or Kazakhstan. Told “Kommersant” a source in the household appliances market.
LG is negotiating in Uzbekistan with Artel, which produces Samsung appliances. The company has not been operating a factory in Kazakhstan since 1998.According to experts, it would be more profitable to move production to Uzbekistan. According to one of the sources, part of the top management has already been relocated to Tashkent. Another source says that LG is negotiating with the authorities of Kazakhstan. After the start of a full-scale invasion of Ukraine in f In February, manufacturers of electronics and household appliances began to stop deliveries of products to Russia.
LG suspended deliveries of products to Russia in March.
whirlpool are taking the most drastic steps in the shifting business by slashing production of its refrigerators, dish washers and other home appliances by more than a third to shrink inventories.
The company is among dozens of U.S.-based multinational companies confronting weakening consumer demand amid higher costs. Whirlpool says cutting production volume by 35% last quarter reduced inventories by $300 million.
The moves are among the many steps companies are taking to adjust to increasingly volatile consumer spending patterns. Household staples supplier Procter & Gamble is diversifying its production assortment to keep cash-crunched shoppers from switching to cheaper brands.
In its most recent quarter, higher commodity, materials and freight costs reduced P&G’s gross profit margin by 5.5 percentage points, which was fully offset by cost cuts and price increases.
In the conference call with analysts, the CEO does not reveal the names of the possible buyers of Whirlpool Emea and fails to stop the collapse of the stock after the disappointing results announced the previous day.
The things are clear to the 15,000 Whirlpool employees in Europe (especially Italy and Poland), Africa and the Middle East, to the related industries of the 10 factories (5 of which in Italy) and to the trade, in short, to those who try to understand what the destiny of Whirlpool EMEA. The little information shared by Whirlpool Corporation in presenting the data for the third quarter allows us to establish some fixed points 10 financial and industrial groups have proposed to acquire (it is not known whether in part or in whole) the assets of Whirlpool Emea.
Two of these groups, both industrial, remained ‘in the running’ and their offers are being evaluated.
The choice between one of the two offers and an internal solution will be submitted to a meeting of the Board of Whirlpool Corporation, probably before the end of the year, based on an analysis of the various market segments in which Whirlpool Emea operates.The markets in which the group intends to invest both to produce and to sell are other: obviously the USA and Canada, Brazil and Mexico and India.
Globally, Whirlpool Corp closed a bad third quarter disappointing analysts’ expectations. Whirlpool’s sales fell by 12.8%, in the third quarter by 7% net of the strengthening of the dollar. During the year, Whirlpool transferred $ 2.6 billion in dividends and buy backs to its shareholders
Whirlpool Corp is set to inaugurate a new factory in Buenos Aires after a $52 million investment, with plans to export more than 70% of the local production, Joao Carlos Brega, the firm’s Latin America chief, said.
The plant, which will employ some 400 workers, will produce 300,000 washing machines each year and export $50 million worth of products around Latin America, mainly to Brazil.
The ‘strategic review’ is almost finished but the press release is extremely laconic.
In the third quarter, Europe is the only area with negative margins and it is the one with the most significant decline: -28% in dollars.Whirlpool Corporation Announces Q3 Results Impacted by Short Term Macro Headwinds
And Provides Update on Portfolio Transformation; Business Well Positioned for Future
• Portfolio transformation advances with announced acquisition of InSinkErator and the completed
divestiture of the Whirlpool Russia business
• Strategic review of EMEA nears conclusion with two potential strategic investors in final evaluation
stage
• GAAP net earnings margin of 3.0% and ongoing (non-GAAP) EBIT margin(2) of 5.5%, despite double digit
industry declines across most major marketplaces and continued elevated cost inflation
• In anticipation of a temporary soft demand environment, reduced production volumes by 35% in the
third quarter
• Delivered GAAP and ongoing (non-GAAP) earnings per diluted share(1)of $2.60 and $4.49, respectively
• Revised full-year 2022 guidance to ~$5.00 earnings per diluted share on a GAAP basis and ~$19.00 on
an ongoing basis(2)
, cash provided by operating activities of $1.5 billion and free cash flow(4) of $950
million
• Structurally improved Whirlpool well positioned to navigate current environment and benefit from
long-term demand tailwinds
Whirlpool Corporation (NYSE: WHR), committed to being
the best global kitchen and laundry company, in constant pursuit of improving life at home, today reported
third quarter 2022 financial results.
”
While our Q3 results were impacted by ongoing
macroeconomic headwinds and continued elevated
levels of inflation that resulted in slowing demand,
we remain on track to deliver the second-best year in
our 111-year history in 2022,” said Marc Bitzer,
chairman and chief executive officer of Whirlpool
Corporation. “Looking ahead, we see these
challenges persisting into the first half of 2023,
however, we believe we have the right actions in
place that will allow us to navigate through the
current environment while advancing our portfolio
transformation and delivering strong shareholder
returns.”
Friday CEO Marc Bitzer’s Conference call with analysts should provide some more details. For now it is known that the ‘strategic review’ of European activities involved costs of 25 million dollars, probably in fees for investment banks and consultants
Electrolux, Europe’s biggest appliances maker, has agreed to sell its idle factory in Memphis in the United States for $82.5 million, it said in a statement.
The Swedish group said late on Wednesday it aimed to finalise the deal with an undisclosed buyer, and book a gain of around 740 million crowns ($65.3 million) from it, in the fourth quarter.
For three years, Samsung was able to increase consistently in the third quarter; however, that growth has suddenly abruptly stopped. While the company’s revenue only managed to expand by less than 3% over the same time the previous year, this stop results in an operating profit decline of approximately 32%
The South Korean company anticipates its operating profit to be about KRW 10.8 trillion (roughly $) and it’s aggregated sales to be around KRW 76 trillion (roughly $). The company’s operating profit has decreased by 31.7% year over year even though its sales have climbed by 2.73%. In the last three years, this is the first earnings drop for the corporation.
Through its investment company –SEB Alliance– Groupe SEB announces its participation in the new fund-raising round of ITEN, France’s leading specialist in ceramic Li-ion technology, alongside Bpifrance.
Passionate about innovation and convinced that new technologies can improve the daily lives of our consumers, SEB Alliance supports ITEN in this phase of industrialization of its products. Currently operating a pilot site in Dardilly (69), ITEN will set up two plants between 2024 and 2026.
WHITEGOODSNOW 