Whirlpool production hit

Whirlpool’s production volumes took a 5% hit in Q4 because of a “one-off” disruption at an unnamed supplier that has since been resolved, CFO Jim Peters told investors Tuesday.
Peters described the firm as a “critical supplier providing a common platform of parts for multiple manufacturing locations and products.”
The issue was fixed in mid-January, but the finance chief noted that there were confidential “ongoing discussions” with the supplier, which prevented Whirlpool from sharing additional details about the disruption.Supply Chain Dive
MENU menu
DIVE BRIEF
Whirlpool’s production takes a hit after supplier disruption
Published Feb. 1, 2023
Ben Unglesbee’s headshot
Ben Unglesbee
Senior Reporter
The Whirlpool logo is seen on a display of clothes washers and dryers
The Whirlpool logo is seen on a display of clothes washers and dryers. The appliance maker’s profits took a $100 million hit after an interruption at a key supplier. Justin Sullivan via Getty Images
Listen to the article
3 min
Dive Brief:
Whirlpool’s production volumes took a 5% hit in Q4 because of a “one-off” disruption at an unnamed supplier that has since been resolved, CFO Jim Peters told investors Tuesday.
Peters described the firm as a “critical supplier providing a common platform of parts for multiple manufacturing locations and products.”
The issue was fixed in mid-January, but the finance chief noted that there were confidential “ongoing discussions” with the supplier, which prevented Whirlpool from sharing additional details about the disruption.

Dive Insight:
While Whirlpool did not disclose specifics, the interruption at the supplier took a toll on the home appliance company’s sales. Net sales fell 15.3% in Q4 and organic sales declined 10.8%, which the company attributed to the supply chain issues.

The disruption, coupled with a previously announced production reduction, also led to a $100 million hit to the company’s profits, CEO Marc Bitzer said on the earnings call.

The hiccup comes after Whirlpool spent two years working to make its supply chain more efficient and resilient amid the many challenges of the pandemic era.

In that time, the company slashed its active parts from 110,000 to 70,000 to reduce complexity in its supply chain, Bitzer said. He added that in the medium-term, Whirlpool management sees a path to getting that number down even further, to “well below” 50,000 parts.

The appliance maker has also “significantly expanded” into dual sourcing, putting priority on high-value strategic parts and components, according to Bitzer.

“But we still have a tail end of lower value parts that are single source,” the CEO said. “This will be our focus in the coming months and years.”

Looking to the year ahead, Bitzer said that “flawless execution of our supply chain” is one of Whirlpool’s top operational priorities, along with “very significant” targets for cutting costs. The company is eyeing $800 million to $900 million in potential cost reductions.

The two goals are closely related. As part of the cost cuts, Whirlpool expects to remove over $250 million in what Bitzer described as “premium costs and inefficiency in our supply chain operations.”

The company also expects cost reductions in raw materials of up to $400 million, with some help from easing inflation.

Whirlpool: disappointing data

Whirlpool Corporation reported data from a disappointing fourth quarter during which sales fell 15.3% from 5.8 to 4.9 billion (-15%) with a loss of 1.6 billion due to weak demand only partially offset by a more favorable price mix (demand was directed towards higher-end products) and by the increase in prices

Full-year 2022 sales fell 10.3% from $22 billion to $19.7 billion, a loss of $1.52 billion versus a profit of $1.8 billion in 2021, or nearly $7 per share .

In Emea the turnover collapses but without losses.
Sales in EMEA fell by 27% from $1.4 billion to $1.0 billion (also depressed by the fall in the euro against the greenback: in local currencies the decline was 18%) with a small loss however 4 million dollars.It was unclear whether Whirlpool expects any cash proceeds from the transaction that transferred Whirlpool’s EMEA operations to Beko Europe

Appliances become trillion euro market

Appliances market size will grow reach over a trillion euros ($1.096 trillion) by the year 2030, according to a study by Precedence Research. But what are the key drivers for this market growth in the years to come?
A number of Technological advancements have been identified in the study as key reasons why the global household appliances market is expected to grow so much in the next seven years. Precedence Research cites the proliferation of digital technologies, as well as heightened investment from industry leaders in developing innovative appliances and services, as drivers for market growth.

New technologies emerging in the household appliance industry, such as robotics, artificial intelligence, machine learning and the internet of things, were listed as more causes for the market growing to over a trillion euros by 2030.

Developments within e-commerce, predicted to be the fastest-growing segment for household appliances, were also cited as drivers for market growth. E-commerce channels are seen to be enjoying an increase in sales of household appliances, due to the growing influence of e-commerce platforms, as well as wider availability of smartphones and the internet.

Refrigerators were noted as being the most in-demand household appliance, as well as the main driver of growth in terms of market segments. The report suggests that in the coming years, demand for refrigerators will partly be driven by the availability of different types of product, based on size, door and additional functions.

Precedence Research states that the Asia Pacific region is the most dominant in terms of household appliance revenue, with the area being the base for industry leaders such as LG, Panasonic and Samsun

Miele presents Pioneering GmbH

Miele has founded its own incubator in order to further promote the development of innovative solutions from within the ranks of the workforce and implement them faster. With Pioneering GmbH, Miele is ensuring a creative environment in which internal start-ups can bring their ideas to fruition faster, well away from established structures. Management of Pioneering GmbH is to be shared by Ina Nordsiek, Director Intrapreneurship within the business unit, and Hendrik Stegelmann, Director Digital Innovation and Products with Smart Home. Both will assume their new responsibilities alongside their existing tasks.

Particular attention will be paid to promoting business ideas which represent a strategic fit but are outside Miele’s previous core business field. «With Pioneering GmbH – Nordsiek explains – we are offering administrative freedom and elbow room and a professional and inspiring environment in which we bring together the best of the start-up and the Miele world». As Stegelmann added, «on the one hand, teams have the liberties and autonomy of a start-up whilst on the other being able to fall back on the support of a globally active family company».

In more concrete terms, ideas for innovative business models, product or process solutions from the New Growth Factory or Smart Home are transferred to the new company which, after careful evaluation by Miele, are considered promising. Once there, development of the so-called Minimum Viable Product continues through to market maturity, initial discussions with potential customers and market trials under real-life conditions. If the business case overcomes this hurdle, it is either integrated at Miele or pursued further as a separate start-up founded at that point

Whirlpool shares

Whirlpool shares gained more than 1.9% in extended trading after the appliance maker shared strong guidance for the year. Fourth-quarter revenue came in at $4.92 billion, slightly behind the $5.07 billion expected by analysts, according to FactSet. The home appliances company also announced its chief operating officer would transition to an advisory role and then leave the company.

DE’ LONGHI: -2% TO 3.16 BILLION REVENUES IN 2022,

Excellent news from America (+11%) and Asia (+16%) but in Europe, where the group generates 60% of its turnover, sales fell by 11% in the fourth quarter and by 10% in the whole of 2022 .De’ Longhi closed 2022 with consolidated revenues of 3.16 million euros, a decrease of 2% compared to 2021. In particular, the bad performance in the fourth quarter (-4%) weighed heavily. At constant exchange rates, i.e. without considering the effect of the euro falling against the dollar and other currencies, 2022 turnover would be 6% lower than that of 2021. De’Longhi, like the whole sector, had a good first semester and then suffered from the weakening of the demand for goods in the European area which represents around 60% of sales. In Europe De’Longhi sold 10% less than in 2021.

All non-European markets performed much better, in particular America (+10.8% to 624 million), the Middle East, India and Africa (+7.9% to 197 million) and the rest of Asia (+15.9% to 464 millions).

“ The fourth quarter performance ”, said the Chief Executive Officer Fabio De’Longhi , “ is a prelude to a possible trend in the margins of the year just closed in line with the high part of our guidance’, which estimated an adjusted EBITDA between 320 and 340 million. For 2023 De’ Longhi sees a year with sales ‘slightly down’, with ‘a second half of a slight recovery’ . The consolidated results will be approved by the board on 13 March.

Currys launches nationwide ‘Quiet Hour’

Currys has launched a ‘Quiet Hour’ in stores across the UK in a bid to create a more inclusive shopping experience for neurodiverse customers.

For the first hour of the day until 11am, the electrical retailer will reduce noise in-store, keeping lights low and making sure there are no flashing screens to ensure a calmer place to shop.

China’s Hisense becomes Slovenia’s largest exporter

The production lines have been busy at the Hisense factory in the town of Velenje in northeast Slovenia, as the demand for its household appliances steadily grows in Europe.

Hisense, a Chinese multinational major appliance and electronics manufacturer, holds a five percent share of the European market, but the company has set itself higher goals for the near future.Europe is a big market with a lot of potential,” Jianmin Han, the Chairman of Hisense Europe, tells CGTN. “Our target in three years, by 2025, is to achieve 10 percent of the market [share] in two segments, to really become a tier two brand in Europe.”

The Chinese home appliance giant established itself as Slovenia’s largest exporter, significantly surpassing the country’s other major exporters like Renault and a couple of local domestic pharmaceutical companies.

Not many expected these results in 2018, when Hisense acquired Slovenian producer Gorenje. Founded over 70 years ago in the former Yugoslavia, Gorenje produced and exported home appliances across Europe.

But five years ago, stiff competition forced the Slovenian government and the Gorenje shareholders to decide whether to integrate it into a bigger system or let it embark on a path of slow and inevitable demise.

They decided to invite China’s Hisense to buy Gorenje, in a bid to give the company and the community, a new lease of lifeIn 2021, its exports reached $2 billion, and even higher numbers are expected for 2022.

Hisense has secured thousands of jobs in Slovenia,

Energy features ignored

Household Appliances
Energy efficient features “ignored” by 9 out of 10 homeowners, Beko finds
A new survey of 6,000 homeowners and renters from across the globe, commissioned by leading appliance brand, Beko, has revealed that nearly 9 in 10 (89%) respondents globally ignore what’s best when it comes to energy efficiency in the home, despite 80% of those surveyed knowing how to use their household appliances in an energy efficient way.
The survey looks at global consumer attitudes and behaviours concerning energy efficiency and is part of its latest campaign to shed light on how kitchen appliances are used efficiently in the home.

While these results paint a contradictory picture of household efficiency, findings have shown that globally, almost 9 in 10 (87%) believe in the importance of energy efficiency and 78% take an interest in purchasing products that look to improve their household’s efficiency. However, the majority of respondents admitted to engaging in energy inefficient behaviours that are known to waste energy including:

Leaving the fridge door open when deciding what to eat (29%)
Leaving a freezer plugged in when it’s got nothing in it (20%)
Leave gadgets on charge for longer than they need (37%)
‘Settingsphobia’ – a term coined by Beko – is also to blame for inefficient energy practices in the home as almost 3 in 5 (59%) people are worried they’ll choose the wrong setting when using household appliances, but out of fear stick to the same, sometimes inefficient setting.


Akın Garzanlı
Akın Garzanlı, Chief Marketing Officer at Arçelik commented: “The data gives us a fascinating insight into how attitudes towards energy efficiency are evolving across the globe. At Beko we’re continually striving to provide high quality products that suit the changing needs of our consumers and of the environment. While we look for ways to innovate solutions to more efficient living, building on our latest SaveWater™ and popular AquaTech® technology, which offers an energy efficient and sustainable home experience, it’s interesting to understand how households are responding and this will help to inform how best we can help as a corporation”.

Gen Z revealed as generation with surprising behaviours
Gen Z were revealed as one of the most knowledgeable demographics when it comes to energy efficiency with over 60% of Gen Z reading the instructions whenever they buy a new appliance, the study found. Despite this product knowledge, data shows Gen Z can often make accidental mistakes when it comes to their appliances, with 76% having used the wrong setting on their appliance, causing them to spoil their food/drink or damage their clothing.

Those older than 64 are unaware of benefits of energy efficient products
Actions speak louder than words when it comes to energy efficiency for those over 64 years of age, as findings reveal a substantial disbelief in energy efficiency products, but a strong belief in energy efficient actions.

The survey revealed that those over 64 are the generation least likely to prioritise energy efficiency when buying new products, with only 6 in 10 (63%) taking action, compared to younger generations (81% of Millennials) – and nearly 7 in 10 (67%) not interested in replacing their current products. However, those over 64 are the generation who claimed to be most aware of how to use all their appliances in the most efficient way (86%), despite the majority sticking to the same settings on their washing machine.

The survey also offers insights into how attitudes and knowledge regarding best energy efficient practices in the home differ across age groups. People over the age of 64 cited leaving the oven on whilst not in use (56%) and putting the heating on whilst the windows were open to dry clothes (56%) as inefficient practices, whilst almost a third (28%) of Gen Xers admitted to leaving an empty freezer plugged in.

The findings, which have demonstrated a gap between knowledge and behaviour within consumers globally, highlight the need for greater action in ensuring consumers are maximising the efficiency of appliances at home.

Conscious of the results, Beko is partnering with Youreko, an energy efficiency tool that calculates the lifetime running costs of appliances, to provide information to consumers on potential cost and energy savings when choosing new products.


Youreko calculator
This feature is currently available for consumers to use on the UK Beko website and Beko Poland, and will be integrated into Beko’s Germany, Romania, France, Italy, Austria, Spain and Netherlands sites as well. The partnership involves the integration of the Youreko tool on Beko’s website to display information to the general public on how energy efficient Beko’s appliances are compared with least energy efficient models and how much money the manufacturer’s appliances could save consumers in the long term. The tool supplements the listings of Beko’s washing machines, tumble dryers, dishwashers and refrigerators which all boast energy efficient technologies within, the company says.

For more household appliance news, click he

appliances, Beko, consumer survey, eco-friendly, energy efficiency, energy efficient, energy savings, survey, sustainability
Prev PostTop digital fitness trackers in 2023 with sector set to reach $68bn
You Might Also Like:
ERI creates Design for Sustainability programme to help OEMs hit circularity targets
IFA Global Market / Sourcing
Fisher & Paykel says ‘slow living’ will dominate appliance trends in 2023
Household Appliances
Volvo to unveil flagship fully electric SUV – the EX90
MobilityShow Neecent Posts
Energy efficient features “ignored” by 9 out of 10 homeowners, Beko finds January 18, 2023
Top digital fitness trackers in 2023 with sector set to reach $68bn January 18, 2023
Introducing All Lock a forward-thinking phone mount system from Lamicall January 17, 2023
Euromonitor reveals top 10 global consumer trends in 2023 January 17, 2023
Newly elected gfu board members take their positions for 2023. Who are they? January 17, 2023
Tags
AI (19) audio (34) fitness (16) Gaming (34) Headphones (15) Home Appliances (21) home entertainment (24) Household appliances (21) IFA (23) IFA 2022 (31) ifa berlin 2022 (20) IOT (16) lg (18) market (27) mobility (16) samsung (25) Smart home (38) sony (15) sustainability (27) tv (16)
IFA Berlin
Homepage
— IFA AREAS
— EVENTS & HIGHLIGHTS
— YOUR VISIT
— IFA BERLIN
— MEDIA & NEWSROOM
Kuvings
Ecovacs
IFA International
The Official Show Daily
— PREVIEW EDITION
— DAY 1 EDITION
— WEEK END EDITION
— DAY4 EDITION
— DAY5 EDITION
— REVIEW EDITION
— E-magazine
Newsroom
All Industry News
— News
— Communication
— Conferences
— Household Appliances
— Imaging
— Computing & Gaming
— Home Entertainment
— Audio
— Mobility
— Smart Home
Podcast — IFA Tech Talk
All Episodes
listen on ApplePodcast
listen on Spotify
RSS feed link
Press Boxes
Legal Notices
Impressum
Privacy Policy
Search …
Media Kit
IFA International – Media Kit
IFA Tech Talk Podcast Media Kit
IFA

Currys group sales slump 6% as international market pressures intensify

Currys UK and Ireland delivered better than expected profits over Christmas to offset struggling international business.

The group’s like for like sales slumped 6% in the 10 weeks to 7 January as UK and Ireland sales dipped 5%. However, it achieved stronger profits than expected thanks to a gross margin increase and cost cutting.

International like-for-likes fell 7% and plummeted 10% in the Nordics as it continues to be hit by aggressive growth strategies from European rivals.

Profits were below forecast in the market as margins came under pressure.

Despite the further deterioration in its internation business, Currys said it remained confident of hitting its full-year profit guidance of £100m to £125m.