After two days of beatings, markets are giving investors a break Tuesday either because pundits have decided that Brexit is not the end of the world, at least in the next quarter, or because some investors have spotted a buying opportunity. Whirlpool Corp. (NYSE: WHR) said this morning that it had completed risk assessments for either a Remain or a Leave vote and is “prepared to take swift actions to offset the negative impact” to the company’s operations in its Europe, Middle East, and Africa region.
Whirlpool reiterated it full-year GAAP earnings-per-share guidance of $11.25 to $12 per diluted share and ongoing earnings per share of $14.00 to $14.75. Cash flow from operations is forecast at $1.4 to $1.55 billion and free cash flow is forecast at $700 to $800 million.
Chairman and CEO Jeff Fettig said:
Clearly the “Brexit” vote has created a number of uncertainties, many that will take some time to play out. The U.K. is an important country for us and we plan to continue delivering innovative new products in the U.K. and Europe.
The U.K. generated about 5% of Whirlpool’s global revenues in the 2015 fiscal year and many of the company’s products that were sold in Britain were manufactured in other parts of Europe. How duties and tariffs between Britain and the rest of the European Union will change is a matter that remains to be negotiated once the British government officially notifies the EU of its plans to leave the union.
Whirlpool stock traded up about 4% Tuesday morning at $160.46 in a 52-week range of $123.60 to $193.59.