Weekend negative news! Industry leader posts RMB 14.1 billion loss; another leader’s profit plummets 2,970%; ten firms report losses, while thirteen leaders see growth.

Mars Appliance’s sharp loss in 2025 stems from a confluence of factors: overall weakness in kitchen appliance demand, internal channel and product-structure issues, and mounting cost pressures. On one hand, the post–real estate boom slowdown—reflected in declining new-home deliveries and saturated penetration rates in the existing market—has led to persistently weak terminal demand for integrated stoves and other categories, intensifying industry-wide price wars and shrinking the company’s revenue base. On the other hand, its overreliance on offline dealer channels has eroded efficiency amid fragmented e-commerce traffic and lagging deployment in emerging channels (e.g., online platforms and home renovation partnerships); meanwhile, high advertising and promotional expenses have further squeezed margins. Simultaneously, volatile upstream raw material prices and underutilized production capacity have driven up per-unit manufacturing costs, while slow product iteration and severe homogenization have deprived the company of pricing power and profit elasticity—culminating in a net profit decline exceeding 2,969% and a RMB 320 million loss. Aucma reported a 2025 loss of RMB 170–220 million. Aucma’s substantial 2025 loss resulted from weak demand across the broader home appliance sector, sustained pressure on core business profitability, and significant asset impairments. First, the post–real estate boom slump continued to depress terminal demand for home appliances, while exchange-rate volatility and trade barriers in overseas markets further disrupted sales of its core refrigeration and lifestyle appliances—intensifying price competition and compressing gross margins. Second, its diversified new ventures—including cold-chain logistics and new energy—have yet to generate stable profits; earlier investments and idle production capacity have inflated operating costs, while deteriorating performance at some equity-accounted investees triggered large-scale asset impairments and investment losses. Additional inventory write-downs compounded the impact, ultimately causing net profit to fall over 301% year-on-year, resulting in a RMB 195 million loss. Zhejiang Meida reported a 2025 profit decline of 86%–91%, with net profit falling to RMB 10–15 million. Zhejiang Meida’s steep 2025 performance drop was driven by three interlocking pressures: shrinking demand in the integrated stove sector, intensifying competition, and an imbalanced channel structure. The post–real estate boom slowdown—manifested in persistently low new-home deliveries and peak saturation in the replacement market—led to broad-based softness in integrated stove demand, while industry-wide price wars significantly eroded gross margins. Overdependence on offline dealers, coupled with delayed expansion into emerging channels such as e-commerce and home renovation partnerships, undermined terminal sales efficiency amid shifting consumer traffic patterns and channel transformation. Moreover, slower-than-peer product iteration and insufficient differentiation weakened premium pricing capability; volatile raw material costs and inadequate expense control further weighed on results—leading to a roughly 89% year-on-year net profit decline and just RMB 13 million in net income. Whirlpool reported a 2025 net profit increase of 150%, reaching RMB 505 million. Whirlpool’s strong 2025 performance stemmed from synergistic gains across industry recovery, channel optimization, and cost discipline. Domestically, stimulus policies for home appliance consumption—combined with a rebound in overseas demand—drove double-digit revenue growth in its core refrigerator and washer categories. Simultaneously, expansion into emerging channels—including home renovation partnerships and lower-tier city markets—enhanced terminal coverage efficiency. On the supply side, digital transformation of its supply chain and scale-driven procurement lowered raw material and production costs, while channel spending was reallocated toward higher-margin products, lifting overall gross margins. Additionally, non-recurring gains from divesting underperforming assets and shedding loss-making businesses further boosted earnings—propelling net profit up 150% to RMB 505 million.

Whirlpool’s global retrenchment: ‘Made in USA’ is both its trump card—and its gamble.

Whirlpool describes itself as the only major U.S.-based manufacturer of kitchen and laundry appliances. In 2025, approximately 90% of its sales originated in the Americas. Its U.S. operations comprise ten primary manufacturing facilities, with roughly 80% of its U.S. sales volume produced domestically. This domestic manufacturing capability has taken on renewed strategic value amid the U.S. government’s renewed emphasis on reshoring industrial production. Current U.S. policy—centered on tariffs and incentives for manufacturing repatriation—aims explicitly to raise import costs and encourage companies to retain or relocate production within the United States. In 2025, the U.S. government clarified that tariff frameworks would actively incentivize onshoring; tariffs on critical inputs like steel and aluminum were also raised further. Whirlpool, accordingly, has stepped up investment in its U.S. plants. In October 2025, the company announced a $300 million investment in its washer manufacturing operations in Clyde and Marion, Ohio—expected to create 400–600 new jobs and stimulate additional employment across its supply chain and related service sectors. The Clyde plant, with over 70 years of history, is one of Whirlpool’s key washer manufacturing hubs—capable of producing up to 22,000 units per day. These investments signal that U.S. manufacturing is not a disposable line item for Whirlpool—but remains integral to its competitive positioning. Yet physical factories alone do not guarantee renewed consumer demand. Can ‘Made in USA’ save Whirlpool? Whirlpool’s current challenge is not factory capacity—it’s whether American consumers remain willing to buy new major appliances. Refrigerators, washers, ovens, and similar large appliances are tightly linked to real estate transactions and home renovations. When housing sales stagnate, interest rates stay elevated, and consumers grow more cautious, demand for such durable goods inevitably softens. The Wall Street Journal notes that Whirlpool’s refocusing on North America makes its financial performance more directly exposed to U.S. housing market dynamics. This vulnerability was evident this year. Though Whirlpool improved quarterly profitability through price hikes, new product launches, and cost-cutting, its Q2 sales still fell 6.8% year-on-year. Its first-half operating cash flow stood at negative $947 million, and free cash flow at negative $1.108 billion. To ease near-term debt maturities, the company secured a $2 billion asset-backed loan and issued $2 billion in secured bonds—pushing part of its debt repayment burden out to 2028. U.S. manufacturing itself also carries cost pressures for Whirlpool. In June, Reuters reported that Whirlpool had cut more than half the workforce at its Amana, Iowa refrigerator plant—and plans to eliminate another 288 positions there. At the same time, the company continues expanding investment in Ohio and adjusting parts of its production and supply chain footprint. In other words, Whirlpool isn’t simply relocating all production back to the U.S. Automation, capacity utilization efficiency, product mix, and Mexico-based supply chains all play active roles in its evolving production strategy. That reflects Whirlpool’s current reality: preserving U.S. manufacturing capability is essential—but controlling associated costs is equally critical. What Whirlpool truly must safeguard is its manufacturing capability. Its actions over recent years make clear that the company no longer pursues ubiquity—‘being everywhere.’

Whirlpool India Quarterly Profit Slumps as Raw-Material Costs Rise

15 hours ago

Whirlpool India reported a 39% drop in quarterly profit due to rising raw-material costs, including MDI and polyol linked to crude oil inflation. Revenue increased 13.7% year-on-year despite seasonal demand weakness.

reuters

2026-11-09

Whirlpool India Quarterly Profit Slumps as Raw-Material Costs Rise

Whirlpool India Quarterly Profit Slumps as Raw-Material Costs Rise

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