Whirlpool to Eliminate 5,000 Jobs, Lowers Forecast as Charge Is Increased

Source: Bloomberg

Oct 28, 2011 6:19 AM ET

Whirlpool Corp. (WHR), the world’s largest maker of household appliances, said it will cut more than 5,000 jobs and reduce capacity by six million units after lowering its earnings targets as consumers rein in spending.

The plan will result in a charge of $500 million, of which $160 million will be booked in 2011, Whirlpool said in a statement today. The company reported sales of $4.63 billion for the third quarter, less than the $4.70 billion estimated by analysts. Earnings per share this year will be in a range of $4.75 to $5.25, down from a previous goal of $7.25 to $8.25.

“During the quarter, we experienced weaker than expected global industry demand and elevated material costs,” Chief Executive Officer Jeff M. Fettig said in the statement. “Our 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 follows smaller European competitor Electrolux AB (ELUXB) with a more muted outlook for the year. The Swedish company said today that it will deepen cost cuts after lowering a forecast for growth in Europe and North America this year.

Read more: http://www.bloomberg.com/news/2011-10-28/whirlpool-to-eliminate-5-000-jobs-lowers-forecast-as-charge-is-increased.html

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Whirlpool to cut 5,000 jobs to reduce costs

BENTON HARBOR, Mich. - Appliance maker Whirlpool Corp. says it will cut 5,000 jobs in an effort as it faces soft demand and higher costs for materials.

The jobs to be cut are mostly in North America and Europe. They include 1,200 salaried positions and the closing of the company's Fort Smith, Ark., plant.

http://www.newsnet5.com/dpp/news/national/whirlpool-to-cut-5000-jobs-to-reduce-costs

How about some more tax breaks?

so they cut jobs so people have less money to buy appliances.

...does not make sense for the system as a whole. There is a mismatch in incentives.

But these days recognizing that and taking steps to counteract it is "socialism".

out to Mexico a few years back. Are they speaking about their outsourced factories? Maybe I am wrong and they have stayed here.

outsourcing their wares to other countries some time ago, but our Government has had years to reverse this and has yet to do it. Every two and four years we go to the polls and hire "competent" personnel to work for us. My God, where did we go wrong?

The coporate honcho's will still make their millions and probably even more.

This is a huge blow to that area. Ft Smith used to be one of the top manufacturing bases in Ark. Where are these people to find jobs now? The only thing left is the casino at the Okla/Ark border.

aren't worth the massive amount of paper they're printed on.

The last I read a few days ago was things were looking up because people are starting to buy things like washers, dryers, refrigerators, kitchen stoves again. They're lying their asses off on this and moving jobs overseas where they can pay less for labor. They aren't fooling this old okie one fucking bit

Thre's your Republicon 'jobs creation' plan right there -- screw Americans, and move the work where the proles can be paid the least and have the fewest rights...

Unfortunately this crap is happening all the time. Its not Pretty but its reality


http://www.dailyjobcuts.com

million or $2.27 per share, from $79 million, or $1.02 per share."

and point (bogus) signs that the economy is improving.

We're not recovering, we're going into the next phase of the Depression we're in, and since this leg will be much worse than the first one, there will be no denying it.

executive bonuses and just before Xmas?. Have a heart people! How do you expect them to buy fresh lambos to go to the country club?

Escalation is just around the corner.

You can see the jobs rushing in now!

Oct. 27 (Bloomberg) -- LG Electronics Inc. and Samsung Electronics Co. dumped refrigerators at low cost, the U.S. Commerce Department said in a case brought by Whirlpool Corp. The agency set duties of as much as 36.65 percent.

Samsung of Suwon, South Korea, faces a tariff 36.65 percent for refrigerators produced in Mexico and 32.2 percent for those from South Korea based on the preliminary findings, the department said today in a statement. LG Electronics will pay 16.44 percent for products made in Mexico and 4.09 percent on South Korea units. Dumping refers to selling a product at a discount in a foreign market.

The decision “validates the legal actions we are taking to protect our 23,000 employees in the United States and the communities in which they work,” said Kristine Vernier, a spokeswoman for Whirlpool, the world’s largest appliance maker. “Maintaining jobs in the United States requires restoring fair competition through the strong enforcement of United States and international trade laws.”

LG Electronics of Seoul said today in a statement that it strongly disagrees with the findings and believes they will be reversed when the Commerce Department makes its final determination. Samsung said its disagreed with the U.S. finding and said it was confident it will be found “in compliance” with trade laws, according to a company statement today.

Bottom-Mount Refrigerators

The bottom-mount models covered by the decision have the freezer below the refrigerator section and are more energy efficient, according to Benton Harbor, Michigan-based Whirlpool. Imports of refrigerators of all types were valued last year at $2.3 billion from Mexico and $881 million from South Korea, the Commerce Department said today.

http://www.businessweek.com/news/2011-10-27/samsung-lg-dumped-refrigerators-as-u-s-backs-whirlpool.html

The company just got a big tax cut thanks to MI Gov. Snyder. He said jobs would come back to MI with a tax cut.

Fort Smith area 10,000+ manufacturing jobs lost since 2006.

In 2010, Whirlpool CEO Jeff M. Fettig received $14,440,697 in total compensation.

By comparison, the median worker made $33,840 in 2010.

Whirlpool's Jeff M. Fettig made 426 times the median worker's pay. The CEO just doesn't get it.

Our family? We buy AMERICAN MADE products, and we'll pay a little more. Move the products outside the US, and I won't buy them. I look at where a product is made. This CEO should be fired for his decisions which cost him sales. Pf COURSE his sales are down- he already moved lots of jobs to cheaper countries. He isn't being rewarded for this company's success--Instead, he is rewarded for failure. Sales are now down, and Fettig gets MORE money????

Fire the CEO, not the workers.