Whirlpool Corp. expects $100 million to $200 million of cost reductions from its manufacturing and supply chain operations in 2024, according to a Q4 earnings call.
CFO Jim Peters said on the Jan. 30 call the company will continue to benefit from its ongoing productivity initiatives and reduced complexity.
Overall, the home appliance company expects total reductions to be around $300 million to $400 million in 2024. According to Peters, $100 million of that goal will come from cost actions taken in 2023.
The additional cost reductions follow Whirlpool’s Q3 announcement that it was on track to deliver $800 million cost reductions in 2023. The company adopted procurement-based strategies to mitigate risk of supplier-driven disruptions in 2021, which has helped its quarterly results.
In Q3, the company also said it collaborated with its supply partners to explore ways in reducing manufacturing complexity.
“We expect minimal to no impact to EBIT margins from raw materials this year based on recent commodity trends and executed supply agreements,” Peters said during the Q4 earnings call.