Whirlpool says Red Sea crisis will start to impact its European business
Reuters
Published Jan 30, 2024 15:37
(Reuters) - Whirlpool Corp (NYSE:WHR) said on Tuesday its European business would start feeling the impact of the Red Sea crisis, as vessels sailing through one of the world's most important shipping routes come under attacks from the Iran-backed Houthi militia.
The attacks have disrupted global trade as more ships take the safer route around southern Africa, adding between 10 and 15 days to transit times.
"That brings uncertainty more in European supply chain," CEO Marc Bitzer said on a post-earnings call with analysts, without giving details about the timeline.
Shares of the home appliance maker fell 6% to $110.7.
Whirlpool, however, sees a small impact on some of the East Coast shipments in North America, not so much in costs but more in terms of time.
Data from S&P Global showed the Suez Canal route accounts for 14.8% of all Europe and Middle East and North Africa (MENA) imports.
The region accounted for 9.1% of Whirlpool's total sales in 2022.
Whirlpool on Monday forecast full-year sales and profit below analysts' estimates as the home appliance maker struggles to keep costs in check.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.