Whirlpool says Red Sea crisis will start to impact its European business


(Reuters) – Whirlpool Corp said on Tuesday its European business would start feeling the impact of the Red Sea crisis, as vessels sailing through one of the world’s most important shipping routes come under attacks from the Iran-backed Houthi militia.

The attacks have disrupted global trade as more ships take the safer route around southern Africa, adding between 10 and 15 days to transit times.

“That brings uncertainty more in European supply chain,” CEO Marc Bitzer said on a post-earnings call with analysts, without giving details about the timeline.

Shares of the home appliance maker fell 6% to $110.7.

Whirlpool, however, sees a small impact on some of the East Coast shipments in North America, not so much in costs but more in terms of time.

Data from S&P Global showed the Suez Canal route accounts for 14.8% of all Europe and Middle East and North Africa (MENA) imports.

The region accounted for 9.1% of Whirlpool’s total sales in 2022.

Whirlpool on Monday forecast full-year sales and profit below analysts’ estimates as the home appliance maker struggles to keep costs in check.

(Reporting by Kannaki Deka in Bengaluru; Editing by Shailesh Kuber and Anil D’Silva)

Brought to you by www.srnnews.com

Follow Us



Recent Posts

Related Posts: