Whirlpool Corp. fell the most in almost three years after the company slashed its annual forecast, blaming currency fluctuations and sluggish demand in Brazil.
Earnings will be $9 to $10 a share this year, down from a previous forecast of as much as $11.75, the Benton Harbor, Michigan-based company said in a statement Tuesday. Analysts had predicted $10.57 on average, according to data compiled by Bloomberg.
Whirlpool, the largest maker of major appliances, becomes the latest company to see the strong U.S. dollar hobble overseas sales. It’s also coping with a “weakened demand environment” in Brazil, Whirlpool said. The company is boosting prices and cutting costs, aiming to improve its profit margins in the second half.
“We continue to invest in our leading brand portfolio and innovative new products while adjusting to a continuing volatile global economy,” Chief Executive Officer Jeff Fettig said in the statement.
Whirlpool fell 7.1 percent to $183.70 at the close in New York, the biggest one-day decline since July 2012. The stock has dropped 5.2 percent this year.