The demand for housewares and home appliances is increasing, and the trend is not going to go away anytime soon Whirlpool Managing Director Mark Bitzer.
“People have a strong house and home orientation,” Bitzer told CNBC.Close the bell“In an interview on Wednesday.” If you listen to all the companies post their work guidelines, I would say that many consumers will stay home an average of an extra day or two. That just drives device usage and won’t go away anytime soon. “
On Wednesday, Whirlpool announced that it made $ 433 million, or $ 6.81 per share, a sharp increase from earnings of $ 154, or $ 2.45 per share, a year ago. Without items, Whirlpool made $ 7.20 per share.
Revenue increased nearly 24% from $ 4.33 billion a year ago to $ 5.36 billion.
The company also raised its guidance for the year. Sales growth of 13% is now expected, more than double its previous estimate of 6% sales growth. Earnings per share are projected to be between $ 23.10 and $ 24.10.
Shares rose more than 2% in trading after the market closed on Wednesday.
Bitzer said sales of its products will continue to be aided by increased demand in the real estate market, which will fuel the industry’s growth in the years to come. In the short term, he said, Covid stimulus checks will help boost consumer spending.
Recent cost inflation in commodities like steel, plastic, oil, and freight has forced the company to raise prices, but that hasn’t deterred Bitzer’s optimism.
“Obviously we are facing an environment where we only see cost inflation. I don’t think cost inflation will go away overnight,” he said. “We saw the need to develop price increases and … price increases in the range of 5% to 12%.”