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Whirlpool shares tumble
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January 21, 2000: 2:09 p.m. ET
Appliance maker's stock goes through the ringer after Home Depot report
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NEW YORK (CNNfn) - Shares of appliance maker Whirlpool Corp. fell sharply Friday on a published report that said Home Depot decided not to include Whirlpool's products in its appliance business expansion.
By early afternoon, Whirlpool shares were down more than 10 percent to 53-9/16.
The Atlanta Journal-Constitution said Whirlpool is being left out of the launch of Home Depot's new appliance initiative because Home Depot has doubts that Whirlpool can keep its growing warehouse stores in stock.
However, Whirlpool said talks are continuing.
"The decisions that both parties finally must make will be based on how well this opportunity fits both [companies'] long-term strategies," said Whirlpool Chief Executive David Whitwam in a statement.
Home Depot spokesman Jerry Shields said "we're not saying we're going to stop doing business with Whirlpool" and said the companies are still working together.
The Atlanta-based leader in home improvement retailing is in the midst of ramping up its appliance-selling activity, but the program is still in its earliest stages, Shields said. An official launch in all of the chain's 900-plus stores is expected this summer.
Shares of Home Depot (HD), which was recently added to the Dow industrials average, fell 7/8 to 59-15/16.
"What's driving the stock down? It looks like Home Depot is not a place where Whirlpool is going to be selling in the near term," said Nicholas Heymann , an analyst with Prudential Securities, who has a "hold" rating on Whirlpool shares. 
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Whirlpool
Home Depot
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