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Whirlpool shares hit by 5,000 job losses | Whirlpool shares hit by 5,000 job losses |
(about 4 hours later) | |
Shares in Whirlpool have fallen sharply after the US appliance giant announced 5,000 job cuts and slashed its full-year profit forecast. | Shares in Whirlpool have fallen sharply after the US appliance giant announced 5,000 job cuts and slashed its full-year profit forecast. |
Shares fell almost 15% after the company said it would reduce its workforce by 10% and cut production due to weak consumer demand. | |
These measures would save $400m (£248m) by the end of 2013, the firm said. | These measures would save $400m (£248m) by the end of 2013, the firm said. |
Tax credits helped to boost net profits to $177m in the third quarter, but sales fell slightly to $2.4bn. | Tax credits helped to boost net profits to $177m in the third quarter, but sales fell slightly to $2.4bn. |
'Aggressive plans' | 'Aggressive plans' |
Whirlpool's chief executive Jeff Fetig said the quarterly results were "negatively impacted by recessionary demand levels in developed countries, a slowdown in emerging markets and high levels of inflation in material costs". | Whirlpool's chief executive Jeff Fetig said the quarterly results were "negatively impacted by recessionary demand levels in developed countries, a slowdown in emerging markets and high levels of inflation in material costs". |
These factors meant the company would make less money in the current financial year, it said. Earnings per share would be between $4.75 and $5.25, compared with the previous estimate of between $7.25 and $8.25. | These factors meant the company would make less money in the current financial year, it said. Earnings per share would be between $4.75 and $5.25, compared with the previous estimate of between $7.25 and $8.25. |
"Given the weakening global economic environment, we are today announcing aggressive plans that will result in substantial cost and capacity reductions," Mr Fetig said. | "Given the weakening global economic environment, we are today announcing aggressive plans that will result in substantial cost and capacity reductions," Mr Fetig said. |
The job and production cuts, together with recently-announced price increases and new product launches would, he said, deliver "long-term value" to shareholders. | The job and production cuts, together with recently-announced price increases and new product launches would, he said, deliver "long-term value" to shareholders. |
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