The demand for housewares and appliances is growing and the trend is not going to go away anytime soon, according to Mark Bitzer, CEO of Whirlpool.
“People have a strong focus on house and home,” said Bitzer in an interview with CNBC’s “Closing Bell” on Wednesday. “If you listen to all the companies posting their work guidelines, I would say that many consumers, on average, stay home an extra day or two. That just drives device usage and won’t go away anytime soon.”
On Wednesday, Whirlpool announced that the company 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%.”
