Marc Bitzer on product mix
From Whirlpool's Bitzer Sees Growth in Replacements | Bloomberg Businessweek · · Bloomberg Podcasts
“Replacement typically doesn't come with a rich mix because it's not a discretionary purchase; the discretionary side is tied to housing (existing and new home sales) and that part is much softer than anyone assumed.”
On , Marc Bitzer, Chairman, President & Chief Executive Officer at Whirlpool Corporation, spoke about product mix during Whirlpool's Bitzer Sees Growth in Replacements | Bloomberg Businessweek on Bloomberg Podcasts.
About Marc Bitzer
Marc Bitzer, chairman and CEO of Whirlpool, has described the company as being at a "critical milestone" in a multi-year portfolio transformation. He stated that Whirlpool is in the final stages of divesting its European business by placing its European assets into a joint venture with a Turkish company, in which Whirlpool will retain a 25% stake. Bitzer said the company has sold its businesses in China and Russia and is focusing on the Americas, India, and its small domestic appliance business. He noted that the company's small domestic appliance business has a 50% EBIT margin and that Whirlpool plans to introduce a fully automatic espresso maker. Bitzer has commented on the U.S. housing market and consumer demand, stating that while the replacement market for appliances is strong due to increased usage following the COVID-19 pandemic, the discretionary side of the business is soft. He attributed this to high mortgage rates and low existing home sales, which he said have "frozen" the market. Bitzer said he believes mortgage rates would need to fall below 6%, and likely to around 5.5%, to "unfreeze" the market and stimulate existing home sales. He added that Whirlpool is a key supplier to eight of the top 10 U.S. home builders and that the company is positioned to benefit from a housing market recovery, which he described as a question of "when it happens, not if it happens."