Enter multiple symbols separated by commas

Whirlpool Problems Go Beyond Domestic Slowdown

The divide between strong international/weak domestic is nowhere more evident than with Whirlpool . Whirlpool noted that the strength was in international and the costs savings generated by the Maytag acquisition. North American revenue was down 8% due to weak demand. Europe was up 12%, Latin America up 23%, Asia up 18%. Whirlpool still generates 60% of its sales in the U.S., so the U.S. slowdown is particularly important for them.

But there are other issues besides the domestic slowdown. Operating margins were well below most estimates; higher raw material costs were a major factor. Whirlpool itself may be selling less than expected; JP Morgan says that "we believe new product efforts in MYG brands may have fallen short amid difficult industry trends this quarter."

They are also seeing some weakness in the OEM business. OEM refers to original equipment manufacturer, where Whirlpool sells its products under another brand. For example, they make Kenmore (a Sears brand), which has been losing market share.

Questions? Comments? tradertalk@cnbc.com

  • Bob Pisani

    A CNBC reporter since 1990, Bob Pisani covers Wall Street from the floor of the New York Stock Exchange.

Wall Street

  • Robert Shiller

    Nobel Prize-winning economist Robert Shiller says that his key valuation indicator is flashing warning signs.

  • Lael Brainard

    The Fed is in the early stages of an analysis on changes in bond market liquidity, amid signs that liquidity may be less resilient than in past.

  • Bill Gross

    Janus Capital acquired a majority interest in Kapstream Capital and said Kapstream's Palghat will support Bill Gross as co-portfolio manager of the Janus Global Unconstrained Bond strategy.