Whirlpool Corp., the world's largest appliance maker, said it would cut 5,000 jobs by the end of next year to cut costs.
Separately, net income fell to $163 million, or $2.15 a share, from $175 million, or $2.20, a year earlier, the Benton Harbor, Michigan-based maker of washing machines and dishwashers said today in a statement.
The global financial crisis, declining home values, rising unemployment and lower consumer confidence will keep appliance sales from rebounding anytime soon, Whirlpool CEO Jeff Fettig said.
In July, the company raised its 2008 forecast for the increase in the cost of steel, copper and other raw materials used to make appliances to as much as $650 million. Customers also deferred purchases as U.S. consumer confidence fell by the most on record in September.
Whirlpool added 87 cents, or 1.8 percent, to $50.03 in New York Stock Exchange composite trading yesterday.
