Whirlpool Corporation (WHR) shares plummeted over 14% during the pre-market trading session on Thursday, following the release of its disappointing 2024 financial results and plans to reduce its stake in the Indian subsidiary.
The home appliance maker reported a net loss of $323 million, or $5.87 per diluted share, for the full year 2024, weighed down by factors such as the loss on sale of its European major domestic appliances business, impairment charges related to its Maytag brand, and restructuring costs. While the company provided an optimistic outlook for 2025, forecasting earnings per diluted share of approximately $10.00 on an ongoing basis and anticipated net cash proceeds of $550 to $600 million from reducing its ownership stake in Whirlpool of India Ltd., the positive guidance failed to stem the selloff in the stock.
Additionally, Whirlpool announced its intention to reduce its stake in the Indian subsidiary, Whirlpool of India Ltd., to about 20% from the current 51% stake via market sale, contributing to the sharp decline in the stock price. This move follows a similar divestment of a 24% stake in the Indian unit last year in February, which also led to a significant drop in Whirlpool of India's shares.
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