By John Keilman

Whirlpool said it expects a steep earnings drop this year due to the end of a favorable tax rate, and it predicted annual sales that undershot Wall Street's expectations.

The news sent the company's stock into a nosedive, an 11% drop in after-hours trading Wednesday.

The maker of refrigerators and washing machines expects to earn $10 per share for the full year, down 18% from 2024 and below analysts' consensus of $11.46, per FactSet. The company said the drop is due largely to the end of the low tax rate it enjoyed for several years due to tax planning strategies and the divestment of its European operations. Whirlpool projected its profit margin before interest and taxes will grow year over year.

Appliance demand is tied heavily to housing sales, and Whirlpool's Chief Financial and Administrative Officer Jim Peters said there's no sign that the anemic market is about to perk up. The company expects sales of $15.8 billion for the year, less than the $16.1 billion analysts predicted.

"We're just not seeing a consistent pattern of what I'd say are green shoots or other things that would tell us that the recovery is just around the corner," he said.

-- Peters said Whirlpool is well-positioned to withstand Mexican tariffs should President Trump impose them. The company has manufacturing plants in the country but imports relatively little of what's produced there, he said.

-- Whirlpool cut costs by $300 million last year and plans to cut another $200 million this year, partly through changes at its factories and logistics network.

-- The company's small domestic appliances segment, which includes KitchenAid mixers, continued to perform well, posting a 6% year-over-year sales increase in the fourth quarter.

This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).

(END) Dow Jones Newswires

January 29, 2025 17:07 ET (22:07 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.