Whirlpool Corp. expects elevated appetite for its appliances as consumers spend more time at home, Chief Financial Officer Jim Peters said.
The laundry and kitchen appliances maker has raised prices to help offset the roughly $1 billion to $1.25 billion in expected raw material inflation this year. Peters added that customers focus on nesting, as well as the need to replace existing machines and home-building trends in the U.S., should help counter higher costs.
The underlying consumer demand is actually stronger than were seeing in shipments today, because were all shipping everything we can produce, Peters said in an interview.
Whirlpool said Wednesday that it sees net sales rising 5% to 6% in 2022, higher than the 2.9% growth expected by eight analysts surveyed by Bloomberg. Ongoing earnings per share, excluding some items, are projected to be $27 to $29 this year, versus the $25.39 forecast. Supply constraints and higher costs for materials are seen persisting this year.
Net sales were $5.82 billion in the fourth quarter — a slight rise from the same period the prior year and below the $5.89 billion average estimate by seven analysts polled by Bloomberg. The KitchenAid owner recorded about $500 million in inflation-related expenses, led by raw material cost increases.
Whirlpool shares fell 2.2% to $203 at 4:07 p.m. in extended New York trading. The stock rose 2.5% in the twelve months through Tuesday, compared to 6.2% with peers in the S&P 500 Household Durables Industry Index.