Whirlpool is 'anxiously waiting' for interest rate cuts: CEO
Whirlpool's (WHR) second quarter earnings came in line with Wall Street estimates as the company reported adjusted earnings of $2.39 per share and revenue of $3.99 billion. Whirlpool Corporation Chairman and CEO Marc Bitzer joins Yahoo Finance Executive Editor Brian Sozzi to discuss the earnings and some of the headwinds the company is facing in North America. "If we zoom in on the North America business, we actually have been pleased that we had a solid sequential margin improvement from Q1. So we feel good about the improvement. We're not yet at the levels where we want to be, but in our guidance, we basically say Q3 and Q4, we will see further improvement," Bitzer says. He explains that the company is still navigating an overall negative macro cycle, especially when it comes to the housing sector in North America. However, he notes, "it is not a lack of demand. The demographics are strong. Household formations were reported 2 million. The demand is there, there is just no supply because people don't want to sell their existing homes because that basically, in most cases, means giving up a very favorable mortgage rate. So that is still the overhang over the industry." He adds that interest rates "don't change demographic trends or the age of the housing stock," and argues that one cut won't unfreeze the market. He believes that several cuts from the Federal Reserve will be needed for the housing market to see momentum, and that Whirlpool is "anxiously waiting." As affordability and cost of living remain key issues for homeowners, many are choosing to hold on to outdated appliances and put renovation projects on the back burner. For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime. This post was written by Melanie Riehl
