Thanks to a housing lift, Whirlpool beats all odds in third-quarter earnings
Stocks were taking a beating on Tuesday, after disappointing earnings appeared from the likes of DuPont, 3M and UPS, yet amidst the slaughter that ensued arose a light of hope that one industry, housing and home appliances, out of all the industries, continues to show steady improvement in a market that continues to only look bleak at best.
Leading the way in home appliances is Whirlpool, who rallied 5.6%, after comfortably beating Wall Street estimates for its third-quarter earnings, and more importantly, raising Whirlpool’s overall forecast. Chairman and CEO Jeff Fettig said Whirlpool is reaping the benefits of “cost saving programs and positive trends in U.S. housing,” and that Whirlpool is “well-positioned for global industry demand recovery.” Whirlpool has been making strides over the last year, and they are now seeing the benefits in their monetary gains. But why? How is Whirlpool surviving in an economy that seems to be floundering?
The answer is simple. Currently we are seeing a great time for homeowners to purchase homes, therefore making the home appliance industry one that is a necessity. Despite a shrinking economy, one sign of “growth” has been the increased housing market. Interest rates are low, and housing inventory is continuing to decrease, leaving a trail for property owners and companies throughout the “housing food chain” to continue to reap the benefits of a housing comeback. Therefore, the home appliance industry is a marketable one, and is one that will continue to be in demand for some time. Great news for Whirlpool which has solidified itself to the point that, even if there were to be a housing market recession, it would be able to hang around long enough to sustain life given its current financial status.
Fact remains, Whirlpool dominates the home appliance industry, and it just so happens that the home appliance industry is one of the few shining through in a bleak market forecast. Whirlpool is here to stay, and as long as we keep living in houses, we will continue to need the goods and services they provide.