WHR Whirlpool Corp

Whirlpool Corp. shares fell sharply Friday to cap a second day of losses in the wake of a World Trade Organization ruling against U.S. tariffs that target subsidies benefiting the appliance maker's South Korean rivals.

More than $1 billion was wiped from Whirlpool's market value over the past two sessions as investors digested the potential impact of this week's ruling by a WTO panel in favor of South Korea's challenge to the U.S. tariffs. These were imposed in a bid to counter subsidies benefiting companies such as Samsung Electronics Co.

Whirlpool shares closed down 4.6% at $166.72 in heavy trading, outpacing the 2.5% decline in the broader market. This followed a 4% decline on Thursday.

Analysts attributed the company's stock decline in part to Wednesday's trade ruling. But they played down the long-term significance of the WTO verdict, citing softening demand signals in Europe and South America and lingering concerns about the strength of the U.S. housing market.

"People are ratcheting down their growth expectations for the housing channel," said David MacGregor at Longbow Research LLC.

Keith Snyder at S&P Global Market Intelligence said the WTO ruling wouldn't have much effect on Whirlpool and noted Samsung and LG Electronics Inc. have already established themselves with U.S. consumers.

"The bad thing for Whirlpool is now LG and Samsung are established names in the U.S.," Mr. Snyder said.

The WTO ruling applied to tariffs on South Korean-built appliances. The U.S. in July said it would begin levying duties on washing machines built in China by Samsung and LG.

A Whirlpool spokeswoman didn't immediately respond to a request for comment.

Write to Andrew Tangel at Andrew.Tangel@wsj.com

(END) Dow Jones Newswires

September 09, 2016 18:15 ET (22:15 GMT)

Whirlpool (NYSE:WHR)
Historical Stock Chart
From Mar 2024 to Apr 2024

Whirlpool (NYSE:WHR)
Historical Stock Chart
From Apr 2023 to Apr 2024