Whirlpool cuts production by 35pc as demand falls

US appliance maker Whirlpool reduced its global production in the third quarter as it anticipates continued slowing demand.

The Michigan-based company cut production in the quarter by 35pc globally as it faced slowing demand brought on by inflationary pressures and prepared for more economic problems.

Third quarter production levels were similar to the second quarter of 2020, chief operating officer Joseph Liotine said, when it and the global economy was facing the fallout of Covid-19-related economic shutdowns.

In the US, Whirlpool said the appliance industry contracted by 10pc, with larger declines in Europe and Latin America.

The company has reduced inventory levels by 10pc compared with the prior year.

Chief executive Marc Bitzer said raw material costs for steel and plastics were expected to have hit a peak in the third quarter and should begin to fall in the first half of 2023.

The Argus US hot-rolled coil Midwest ex-works assessment fell by 54pc from the beginning of the year to $736/short ton on 25 October.

By Rye Druzin