5 Surprising Reasons People Get a Prepaid Phone
Advantages of Prepaid Handsets Include Flexibility and Privacy
Recent TraQline figures indicate that prepaid cellphones account for 30 percent of cellphone purchases. This number is up 9.1 percent from June 2013. At that time, households making less than $35,000 annually were the most frequent users of prepaid phones. The story now is different, as the rise in prepaid has spread to all income levels. There may be several reasons to account for this change:
- Flexibility and Selection
- Quality, Budget Friendly Service
- Increased Number of Children Using Cell Phones
- Privacy
- Business Use
Below, we’ve explored each of these reasons in greater depth:
1) Flexibility and Selection
First, consumers across all income brackets place great value on flexibility, as an article in U.S. News & World Report explains. Many would rather not be tied down to a carrier if possible, and the selection of prepaid phones has grown to the point where all types of consumers feel they have enough options to purchase a phone they will enjoy. Even iPhones are available as prepaid devices.
2) Quality Service and Cutting Costs
The ability to switch carriers without massive termination fees is also appealing. Because many prepaid carriers lease their access from big carriers, consumers can still expect quality service in both rural and urban areas. In addition, numerous carriers used to subsidize phones with huge incentives. For example, consumers could buy a phone for $100 if they signed a two-year contract. This use of subsidies by carries is a thing of the past as they move towards a lease based system.
3) Increase in Children Using Cell Phones
Another possible explanation for the rise in prepaid phones may be the fact that parents are purchasing phones for their children. Children are receiving cell phones at increasingly young ages. Currently, more than half of children between the ages of 8 and 12 have a cell phone and they were most likely to receive these phones at around 10 or 11 years old. Many of these phones are prepaid because is it easier to monitor the usage of the minutes. There are no surprise charges, and parents can reload minutes if they want. Meanwhile, children learn about budgeting their time and about planning ahead to ensure their minutes last.
4) Privacy
Privacy may be another reason for the uptick in prepaid phone purchases. Some consumers may be using their prepaids as burner phones - for one purpose only. For instance, they might use their phone solely for dating apps such as Tinder or to have a phone number handy for online purchases and subscriptions. This move enables them to sidestep calls from telemarketers. Furthermore, prepaid phones do not require income and credit checks. This makes them especially appealing to people who are worried about being tracked or who are concerned about their general security. The less a company knows about them, the better, or so the thinking may go.
5) Business Use
Adding to the picture is the fact that some businesses are skipping the landlines and going right to cellphones—prepaid cell phones—that they use only for business. For one thing, cellphones offer advantages over their landline counterparts, such as texting. Businesses are easier to reach and become more consumer-friendly in a world where instant access is the norm. There is also the fact that going the prepaid route compared with the contract route can also be more budget-friendly, an especially important approach for new businesses.
Cell Phone Market Research and Insight | TraQline
The rise of prepaid phone purchases shows that consumers are taking advantage of their options. Whether they want to limit children’s minutes, have a devoted phone for business or personal use, or value the lack of strings with a prepaid, consumers have many reasons to purchase prepaid devices. Additionally, cell phone carriers moving away from multi-year contracts could encourage consumers to explore multiple options. What do you feel are some of the benefits (or drawbacks) of using prepaid cell phones? Let us know on twitter (@TraQline).
If you are interested in consumer behavior, market research, and the ins and outs of the cell phone/smartwatch industry, partner with the research experts at TraQline. Our quarterly survey covers a wide range of industries, giving you the tools you need to reach your target market and take a data-driven approach to business growth. Contact the experts at TraQline to get started today.
How to Choose the Right Grill
According to the 2015 State of the Barbecue Industry Report published by the Hearth, Patio and Barbecue Association (HPBA), 37% of U.S. adults are planning to buy a new grill. But which grill is best? Different grill types have a strong outcome on how the food cooks and how the flavors turn out. There are three main types of grills: charcoal, gas, and electric (along with their high-end subsets, infrared grills). Each type of grill comes with its own set of advantages and disadvantages —the key is to choose the best fit based on your environment and grilling needs.
Charcoal Grills
When shopping for grills, 37.6% of consumers who bought a grill in the past year chose charcoal grills — making them second only to gas grills in popularity (TraQline: 4Q End Q2 2016). Why is this type of grill so widely accepted? Charcoal grills are lauded for their wood-smoked flavor. While gas grills may heat more quickly, the flavor that’s delivered through the smoke and radiant heat of a charcoal grill is one that others can't replicate. While a good gas grill can exceed temperatures of 500 degrees Fahrenheit, charcoal grills can go even higher (if properly and safely tended). This high heat is ideal for certain grill techniques like searing steaks.
On the other hand, charcoal grills are messy and require regular cleaning to function well. They’re also a lot harder to control in terms of temperature. While a gas grill can be set to a specific temperature, you’ll only get precise temperatures with charcoal if you’re an experienced grill master. It’s also a lot harder to switch heat settings. And that’s not mentioning the lengthy prep time and having to tend coals (which isn’t much fun in the winter months). In terms of price, charcoal grills will almost always cost less than a gas grill of comparable quality and size.
Gas Grills
Gas grills are currently reigning supreme in popularity, with 48.8% of consumers purchasing a gas grill in the past year. The biggest benefit of a gas grill is the ease of use, especially when it comes to turning the grill on, reaching ideal temperature, and cleaning. On most models, the grill is easily ignited by a simple valve twist and button push, and turning the grill off is just as easy. Because it runs on a propane tank, a gas grill can provide fuel for about 16 to 20 hours before needing replacement. It’s incredibly easy to reach and maintain ideal temperatures because of speed at which it can heat up; some can get to ideal grilling temperatures in 10 minutes or less. This gives gas grills a lot of versatility — they can cook food quickly for a weeknight dinner and you can use them year-round, even in cooler temperatures. Another convenient feature of gas grills is the ease of cleaning. Because the temperature is easily controlled, after grilling the surface are blasted with heat to char any residue — which is then easily wiped off. There are also no coals or ashes to clean.
In general, gas grills tend to cost more than electric and charcoal grills. While you can find models in the $150-$500 range, high-end models can easily soar over $1000. For some grills, there may be complex maintenance required to keep the grill in working order. With a lot of working parts - valves, tubes, etc. — there are a lot of things that may need special care or replacement.
Electric Grills
Coming in far behind gas and charcoal grills in terms of popularity (only about 12% of households bought electric grills in the past year), electric grills are still a viable alternative to charcoal and gas — especially for those living in an apartment or condo where gas and charcoal grills are often banned or restricted. Electric grills are similar to gas in that they turn on easily and heat up very quickly — also making them a great choice for those needing to cook quickly and without hassle. Unlike gas and charcoal grills, electric grills don't generate a lot of smoke or have an open flame, and thus can be safely used indoors. The biggest difference between electric grills and gas or charcoal is the power source — it’s as easy as plugging it into a working outlet in the wall.
Electric grills do have their limitations. If there's no electrical outlet within reach outside, an extension cord may be needed to power the grill, which looks untidy and can be a tripping hazard. Cleaning can also be a bit tricky — water has to be kept away from the electric components or the grill can malfunction. Due to the lack of open flame, it’s not ideal for searing meat like a gas grill and won't provide the same flame-broiled flavor as a charcoal grill. For many, these tastes are the ultimate deciding factor in grill type (according to HPBA, about 71% of people say flavor is the main reason to cook with a grill) and the electric grill falls behind its counterparts.
How to Choose the Right Grill
Regardless of grill type, there are a lot of other factors that need to be considered when seeking the best grill.
Some things to consider when grill shopping (aside from budget) include:
- Grill size in relation to available space and surface area/cooking capacity. If you’re planning to cook in large batches (i.e. 15 burgers at once) a grill with a much larger cooking surface should be a top priority, as long as it fits in the intended space.
- Which material will work best based on budget and environment? Grills are most commonly constructed of cast aluminum, stainless steel, or cast iron. Stainless steel tends to be the most expensive and comes in multiple grades. Stainless steel is a high-quality material as it is most resistant to all types of corrosion and high temperatures. However, cast aluminum is impervious to a specific type of corrosion- rusting- and therefore can be a smarter choice if you live in high-moisture areas.
- No appliance is ever perfect, so you should read and compare warranties. On a gas grill, sometimes the burners have a separate warranty than the rest of grill. Ideally, they should carry a 5- to 10-year warranty. Other things to consider are the dealer's reputation, what type of support is offered and if the warranty covers replacements on parts.
- Accessories can make or break a grill purchase. They should not be the main factor in your decision, but things like extra side shelving, color choices and covers can justify a higher price. Other accessories you might see include fuel gauges, drink holders, storage and even surround sound capabilities.
While all these different grill types and nuances may seem overwhelming, the good news is that there's a type of grill to fit your needs. The key is deciding which aspects of grilling are most important and finding one that fits both your budget and your available space. Once you’ve got the perfect grill set-up, head on back to our blog and check out the TraQline team’s go-to grill recipes!
Samsung appliances, TVs not affected by phone recall
Reviewed.com's Keith Barry writes: In the wake of a massive recall of Samsung Galaxy Note 7 smartphones, it appears that owners of other Samsung products have no specific cause to worry.
On September 15th, the Korean conglomerate officially recalled 1 million smartphones due to a potential for “serious fire and burn hazards.” In addition to phones, Samsung also sells televisions and home appliances in the U.S., none of which have been subject to a recall as broad as the smartphone campaign.
... Samsung products have gained in popularity with consumers in recent years. According to market research firm TraQline, Samsung’s market share for mobile phones has increased 4.1 percent since 2013. The company’s market share for home appliances grew 56 percent in the same period.
Read the full article at Reviewed.com
WINDOWS AND DOORS INFOGRAPHIC
ALMOST 50% CONSUMERS CHOOSE WINDOW AND DOOR RETAILERS BASED ON PRICING
When it comes to the “Who, What, Where, When, How, and Why’s” of the window and door consumer purchases, TraQline has got you covered. In an internet survey of over 600,000 consumers per year, TraQline gives anyone in the window and door consumer durables industry a better look at the marketplace, brand and retailer market share, purchase drivers, online sales, evolving feature trends and more.
TraQline collects this information by product category, including windows and doors. We collect metrics including online market share, dollar share, unit share, and draw/close for brands and manufacturers.
Check out this infographic for an illustrated overview of the Q2 2016 Window and Door market.
Windows and Doors Key Statistic Takeaways
- The Northeast overindexes on windows and doors sales.
- When buying windows or doors, 65% of consumers make their purchase in a retail store.
- Average sales price for windows and doors is $1231.
- Men and women shop together for doors and windows 36% of the time.
- Lowes gets just over 9% of consumer dollars for windows and doors.
- Home Depot closes the deal on windows/doors 60% of the time.
- Almost 50% consumers choose window and door retailers based on pricing.
- 48% of windows and doors customers earn $75K+ annually.
- The West underindexes on window and door sales.
- Almost 1/4 of door and window shoppers are solo women.
- Pella nets 7% of windows and doors consumer dollars.
- 1 in 4 are a 1st time purchase!
- 1 in 4 door/window buyers is looking for top quality.
- More than 40% of window/door purchases are for routine maintenance.
- 6% of consumers made window/door purchases online.
- Nearly 90% of window and door buyers own their own home.
- 26% of window and door shoppers visited 2 stores.
- More than 1/2 of online window and door shoppers compared prices.
Windows and Doors Market Research and Insight with TraQline
If you are ready to get inside the minds of your windows and doors customers, TraQline is here for you. Our market research experts have the insight you need to keep your company ahead. Contact our Windows and Doors industry experts to get started today!
DIY Market Research vs. Research Firm – Which should I use?
As your business grows it's likely that you will draw upon research at some point. After all, you need to know about your target customers: their pain points, income levels, priorities, shopping preferences and much more. Accurate information translates into a better business, but how should you get that information? Is it better to conduct your own research (DIY Market Research) or to hire a professional market research firm?
Doing Your Own Research – Pros, Cons, and Caveats
To many, doing your own research may seem overwhelming. However, understanding the pros and cons of DIY market research can help you make an informed decision about whether to do it yourself or hire a research firm.
In-House Market Research has many benefits, including:
- Conducting projects with fast turnaround times
- Retaining ownership of the data you collect
- Implementing institutional knowledge
- Less expensive than hiring an outside firm
Eliminating the back and forth between yourself and the researcher helps streamline the research process for faster turnaround. However, be wary as too many do-it-yourself-ers find that they created poor goals and methods and end up hiring a professional in an attempt to “fix” their results.
Owning Your Data
When outsourcing, some companies don’t actually allow you to “own” all the data you’ve collected – even though you’ve paid for the research. They will require that you get all tables, reports, and charts from them and won’t provide you with your raw data. Doing your own research allows you full access to the results in perpetuity – a great perk if you’re planning to refresh the study year after year. You’ll want to think ahead about what you need and check with your researchers to see what input they need, and what output you can expect.
Institutional Knowledge: You Know Your Business
Institutional knowledge is often difficult to explain to an outside research firm: those things that you just know from past research, internal meetings, or nomenclature that your customers might use. When a project relies heavily on this knowledge, it may make sense to conduct the research yourself. However, be careful not to introduce bias into your results by making assumptions about your customers or the results.
Does In-House Research Save You Money?
Naturally, conducting the project yourself can save you money, but be aware, there cons associated with conducting your own research. For example:
- The process is time-consuming
- Resources required (besides time) can be overwhelming
- Potential for researcher bias.
Let’s examine each disadvantage a bit more. Writing out your research objectives, writing surveys, checking surveys, building your sampling plan, fielding the study, monitoring the sample, and analyzing the results are just a few of the big steps in a research project. Each of these steps needs attention to detail and a misstep can lead to lots of lost dollars.
The Small Business Disadvantage
While larger companies are usually in a better position to afford their own research; startups and smaller companies may find the expense both time consuming and costly. For example, doing your own research may involve interviews, direct observations, and tracking metrics – all without the benefit of a research consultant to help navigate the process. You may need to hire at least a few people to conduct the research, and you often must pay third parties to access secondary data sources.
Conducting your own research should include many safeguards, and that can be overwhelming. It's important to have safeguards in place to ensure your data is accurate. For example, providing reliable sample sizes, having researchers double-check one another’s work and developing policies to eliminate the possibility of interviewer bias (such as assuming you already know the answer to a key question) or (mis)leading questions.
In-House Research Tips
Should you choose to do your own research, here are the top three things that come to my mind that you should watch out for:
- Build the right sampling methodology:
A key component of the research process is making sure you’re talking to the right person. You wouldn’t interview 12-year-olds about their preference in denture adhesives. Nor should you feel comfortable forecasting future sales from a sample of only ten people. A sound plan or a professional researcher can help make sure you are talking to the right number of the right people. - Manage Timelines:
Managing a research project is time-consuming, and bringing together all of the key components in a timely fashion is a challenging, but critical part of the researcher’s job. Make sure you list out all of the responsibilities before you launch your project. - Don't go “quick and dirty”:
Quick and dirty is often that – dirty. Use caution when trying to knock out results fast, as you can often overlook critical steps, demographics, or key insights. More than one DIY market research project has been completed while failing to answer the one main question that needed to be answered.
Hiring a Professional Market Research Company – Pros and Cons
Sometimes, just thinking about conducting a research project on your own can be overwhelming. This might be the right time to call in the professionals. The advantages of hiring a market research firm to conduct your research include:
- Usage of best practices and drawing upon a breadth of experience
- The ability of the company to easily draw from information already available (secondary research)
- Trustworthy quality checks
- Extended resources to draw from
- Analytical firepower
Research Best Practices and Knowledge
Undoubtedly the greatest benefit to using a reputable research firm is the ability to draw upon that company’s best practices and resources. It’s like the difference between using a flooring contractor for your tile job vs. doing it yourself. That professional thinks, breathes, eats, and sleeps their job, so they’ve developed efficient and accurate processes and contacts in the industry. Professional market research firms are experienced in conducting research; most have developed partnerships and preferred rates with suppliers (e.g. recruiters, survey companies, etc.).
Enhanced Research Results
While it is rarely cheaper to use a research firm, you often find that the results are superior. That’s because ensuring quality is a huge part of any reputable research firm’s consideration. This is usually accomplished through many layers within the organization and is something most DIY market research cannot afford to implement. Additionally, you’ll find (if you pick the right one) that your research firm should have the analytical firepower to go well beyond what most individuals are able to accomplish. From complex statistics to uncovering those insightful “nuggets,” it’s hard to compete with a quality analyst.
Of course, there are a few disadvantages to hiring a research firm:
- Difficulty finding one that understands your business
- Additional cost
You should always perform due diligence when comparing options for professional research. If available, download some of a prospective company’s white papers or research documents. Get a feel for how accurate its methods are; ask for client references to see how the research has helped other businesses thrive. Always investigate the company's website for professionalism and transparency.
Also important for trustworthiness is to try to retain a company that specializes in your business type. For instance, The Stevenson Company conducts research in many industries, including lawn and garden, consumer electronics, and automotive. Ask upfront how recent the data will be and how the company makes sure the data it collects is accurate.
Bringing it all together – DIY Market Research or Professional?
This quick post should help you realize that you need to balance your research needs with the cost, analytical firepower, and time required to complete a project. Professional research companies offer proven processes, resources, and analytics that few DIY market researchers can match. However, many businesses do conduct their own research, and it goes well. It's also possible to aim for somewhere in between: hiring out for most of your research but going in-house for hyper-focused projects. If you are ready for advanced, accurate, and affordable research, check out all that TraQline has to offer. Contact our research professionals to get started today!
There are dozens of other considerations...I'd love your feedback...what other critical considerations did I miss? -EV
TWICE MAGAZINE’S TOP 50 MAJOR APPLIANCE RETAILERS
Top 50 Major Appliance Retailers: Appliance Sales Grow 3.7%
“According to the latest tally from TWICE market research partner The Stevenson Company, total white-goods sales for the nation’s 50 largest appliance dealers — which account for better than 90 percent of the entire U.S. market — rose 3.7 percent last year, to $27.8 billion.”
POWER TOOLS & ACCESSORIES INFOGRAPHIC
24% OF POWER TOOLS & ACCESSORIES PURCHASES ARE IMPULSE BUYS
When it comes to the “Who, What, Where, When, How, and Why’s” of consumer power tool purchases, TraQline’s got you covered. An internet survey of over 600,000 consumers per year, TraQline gives businesses in the consumer durables industry a better look at the marketplace, brand and retailer market share, purchase drivers, online sales, evolving feature trends and more.
TraQline collects this information by product category, including power tools and accessories such as drills, band saws, router, jigsaws, generators, drills bits, and more. We collect power tool metrics including online market share, dollar share, unit share, and draw/close for brands and manufacturers.
Check out this TraQline infographic for an illustrated overview of the Q1 2016 Power Tools & Accessories market.
Power Tools & Accessories Key Takeaways
- Amazon closes on 72% of sales.
- Over half of consumers pick retailers because of price!
- 1/4 pick retailers because of product selection.
- Home Depot win 27% of consumer dollars.
- 67% of power tool buyers are men.
- 11% of buyer dollars go to Craftsman.
- The Northeast under-indexes on power tools.
- Black & Decker gets almost 7% of consumer dollars.
- Amazon gets more than 6% of consumer dollars.
- 21% of buyers are women.
- Lowes draws in 30% of shoppers.
- 1 in 4 are a 1st time purchase!
- Almost 7 in 10 shoppers just visit 1 store.
- Nearly 1 in 3 shoppers shop online.
- Millennials make up 33% of buyers.
- Almost 3/4 of buyers own their homes.
- 14% of online buyers use ship to store.
- Average sales price at @Amazon is $91.
- 20% of buyers are retirees.
- 24% of purchases are impulse buys.
Market Insight and Statistics from TraQline
If you are looking for an easy way to access insight into the power tools market, TraQline has you covered. Our industry research experts can keep you in the know about the latest trends, interests, and consumer behaviors. Stay ahead of the competition and contact the experts at TraQline to get the full power tools market infographic today!
Price Elasticity: It's not always about the money
Economic theory teaches that price and demand are inversely related. As a product's price increases, demand for the item drops. Likewise, a drop in the market price almost always leads to an increase in demand. While economic theories depend on an 'all things being equal' assumption, the basic idea of price and demand carries over to the retail sector. In short, when consumers are deciding which product to buy, from which vendor, price is almost always the most important consideration.
Recently, a lot of attention has been given to the idea that shoppers are heavily influenced by their online experience and by the retail environment. It's certainly important to have a website that functions well and offers a pleasant user experience, and shoppers prefer a store that is clean and easy to navigate, but data still suggests that neither is as important in swaying consumers as low prices.
Exceptions: When Price Doesn't Determine the Purchase
As with most things, there are a few exceptions that don't always follow the norm. TraQline, The Stevenson Company’s survey of over 200 consumer durable categories and 500,000 consumers annually suggests that when it comes to certain items, other factors are even more important than price. Here are two areas where consumers reported that price isn't the most important deciding factor.
- Smartphones: When it comes to smartphones, price is rarely the deciding factor. In fact, it ranks a distant third behind features and brand loyalty. Consumers place a premium on items that offer the features they want or expect. If they can get those features from a brand they have used in the past, they are likely to be willing to spend more. iPhones present a perfect example of this brand loyalty. Consumers who have used iPhones are almost always willing to pay a premium price to stay with the Apple rather than purchase a less expensive Android model.
- Kitchen and Bath Faucets and Improvement Items: In the case of faucets and other items to spruce up the kitchen and bath, consumers report that they first consider appearance, followed by price and features. In addition, shoppers prefer a wide selection from which to choose. This suggests that expending time and resources to provide an attractive display and showroom would be a worthy investment, even if it results in slightly higher prices.
Market Areas Where Price Matters the Most
While price is an important consideration regardless of the product, sometimes it seems like price is all that matters. Here are three examples of items from TraQline that are predominantly affected by price, with other factors, typically a retailer’s product selection, coming in a distant second:
- Portable Power Tools: 62% of buyers indicate that Price is a top reason for purchasing at a certain retailer. The second top purchase driver is a retailer having a good selection of products as indicated by only one in four consumers.
- Sports Equipment: Price is one of the top purchase drivers for 64% of consumers, while 24% of buyers say the number two driver is the retailer’s product selection
- Home Furnishings and Accessories: Consumers list Price as a top reason for buying at a retailer 61% of the time. Once again, a good selection of products comes in second as a purchase driver, at 35%
Buying Factors That Seem to Matter Little
Survey data reveals a few surprises when it comes to what sways shoppers' decisions. Here are some areas which rank much lower in importance to consumers:
- Recommendations: Responses indicate that this is the factor with the least influence.
- Payment Plans/Installment Purchases: This factor ranks very low on all items except for smartphones, which are often packaged as part of a cellular plan.
- Salespeople: Buyers believe that salespeople do little to affect their purchase decisions. However, issues with locating a salesperson while shopping could be coming into play here.
- Warranty: A surprisingly low number or buyers listed a good warranty as a deciding factor.
Conclusion: Price is the Leading Purchase Factor
Regardless of the few exceptions, price is still the deciding factor for most purchases. As a retailer, it is critical to have the right data to be able to target the areas that will lead to the best return on investment. By knowing exactly which products break the elasticity curve and why, brands and retailers can focus on the factors that matter most to customers, helping to make informed decisions about where it pays to invest resources and where it's essential to make every effort to keep prices low.
TraQline Market Insight
If you are looking for an easy way to drive your business forward with data, the market research experts at TraQline are here for you! With all of the insight, data, tools, and expertise, your business needs, contact TraQline to get started today!
Whirlpool Cuts Annual Guidance as Profit Falls
Weak International Sales Dent Appliance Maker's Results
Whirlpool Corp. , hurt by falling sales outside the U.S., reported a 9.6% drop in profit for the second quarter and reduced its forecast for the full year.
The Benton Harbor, Mich.-based maker of refrigerators, washers and other home appliances blamed lower unit sales, rising material costs and higher spending on marketing and new products.
The U.S. market is benefiting from a gradual recovery of housing construction, spurring sales of appliances, but South Korean rivals continue to take market share away from the more-established brands. Data from Stevenson Co.'s TraQline service show LG Electronics Inc. 's share of the U.S. market in dollar terms climbed to 12.7% in the 12 months ended June 30 from 11.1% in the prior 12 months. Samsung Electronics Co. rose to 10.9% from 9.9%. Whirlpool declined to 30.1% from 30.7%, General Electric Co. to 15.6% from 16.5% and Electrolux AB to 8.4% from 9.4%.
While trying to fend off Korean brands at home, Whirlpool is seeking to expand in Europe and Asia through acquisitions. This month Whirlpool agreed to pay €758 million ($1.02 billion) for a 67% stake in Indesit Co. , an Italian company that sells appliances under its name and the Hotpoint and Scholtes brands. The purchase, a step toward full control, would roughly double Whirlpool's size in Europe. In China, Whirlpool agreed last year to buy 51% of a small appliance maker, Hefei Rongshida Sanyo Electric Co., for the equivalent of $552 million. Both acquisitions are subject to regulatory approval.
Profit in the second quarter totaled $179 million, or $2.25 per share, down from $198 million, or $2.44 per share, a year earlier. The company said earnings from ongoing business, excluding restructuring costs and other items, were $2.62 per share, up from $2.37 per share. Wall Street had expected ongoing earnings of about $2.86 per share in the latest quarter, according to FactSet.
Sales slipped 1.4% to $4.68 billion. Excluding the effects of currency translations and Brazilian tax credits, sales were up about 1%, Whirlpool said. Excluding currency effects and those tax credits, sales rose 4% in North America in the second quarter but declined 9% in Asia, 4% in Latin America and 3% in Europe, the Middle East and Africa.
Sales in Brazil, one of Whirlpool's biggest markets, were hurt by an economic slowdown and the World Cup, which left Brazilians with less time for shopping.
Whirlpool said it now expects earnings of between $10.30 and $10.80 per share for the full year, down from an earlier forecast of $11.05 to $11.55. It cited costs related to the pending acquisitions in China and Europe. For 2013, Whirlpool reported earnings of $10.24 per share.
Whirlpool brands include Maytag, KitchenAid, Jenn-Air and Amana.