BENTON HARBOR, Mich.,
June 28, 2016 /PRNewswire/ -- On
June 23, 2016, voters in the
United Kingdom made the decision
to leave the European Union. Whirlpool Corporation's business in
the United Kingdom represented
approximately 5% of the Company's global revenues in the 2015
fiscal year. Most of the Company's products sold in the U.K. were
produced in other European countries.
"Clearly the "Brexit" vote has created a number of
uncertainties, many that will take some time to play out," said
Jeff M. Fettig, chairman and chief
executive officer of Whirlpool Corporation. "The U.K. is an
important country for us and we plan to continue delivering
innovative new products in the U.K. and Europe."
The Company regularly performs risk assessments as part of the
operational planning cycle and has prepared for either outcome of
the vote. In the past, the Company has utilized a variety of
approaches to manage volatility, including financial hedging. The
Company plans to execute a previously-announced cost based price
increase in the third quarter and expects to continue with strong
ongoing cost productivity programs to lower overall costs in the
EMEA region.
"As we have done in the past in all markets, we are prepared to
take swift actions to offset the negative impact to our EMEA
operations," Fettig added. "We will continue to monitor the
situation closely to determine if additional actions may be
required."
Whirlpool Corporation plans to announce its second-quarter
earnings during the week of July 18.
Based on today's environment and strength of other parts of its
global operations, the Company is reaffirming its full-year
guidance of GAAP earnings per diluted share of $11.25 to $12.00 and ongoing earnings per share
of $14.00 to $14.75. The Company also
expects to generate cash provided by operating activities of
$1,400 to $1,550 million and free cash flow of $700 to $800 million.
About Whirlpool Corporation
Whirlpool Corporation
(NYSE: WHR) is the number one major appliance manufacturer in the
world, with approximately $21 billion
in annual sales, 97,000 employees and 70 manufacturing and
technology research centers throughout the world in 2015. The
company markets Whirlpool, KitchenAid, Maytag, Consul,
Brastemp, Amana, Bauknecht, Jenn-Air, Indesit and other
major brand names in nearly every country around the world.
Additional information about the company can be found
at whirlpoolcorp.com, or find us on Twitter at
@WhirlpoolCorp.
CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING
STATEMENTS
This document contains forward-looking statements about
Whirlpool Corporation and its consolidated subsidiaries ("the
Company") that speak only as of this date. The Company
disclaims any obligation to update these statements.
Forward-looking statements in this document may include, but are
not limited to, statements regarding expected earnings per share,
cash flow, management of currency volatility, introduction of new
products, and execution of previously announced cost based price
increases and cost productivity programs. Many risks, contingencies
and uncertainties could cause actual results and outcomes to differ
materially from the Company's forward-looking statements. These
risks include the Company's ability to manage foreign currency
fluctuations; the uncertain global economy and changes in economic
conditions which affect demand for our products; the Company's
ability to achieve its business plans, productivity improvements,
cost control, price increases, leveraging of its global operating
platform, and acceleration of the rate of innovation; fluctuations
in the cost of key materials (including steel, plastic, resins,
copper and aluminum) and components and the Company's ability to
offset cost increases. Additional information concerning these and
other factors can be found in Whirlpool's filings with the
Securities and Exchange Commission, including the most recent
annual report on Form 10-K, quarterly reports on Form 10-Q, and
current reports on Form 8-K.
RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL MEASURES
|
|
(Millions of dollars
except per share data)
(Unaudited)
|
|
Full-Year 2016
Ongoing Business Operating Profit and Ongoing Business Earnings per
Diluted Share
|
The reconciliation
provided below reconciles the non-GAAP financial measures ongoing
business operating profit and ongoing business earnings per diluted
share, with the most directly comparable GAAP financial measures,
operating profit and net earnings per diluted share available to
Whirlpool, for the twelve months ending December 31,
2016.
|
|
|
Twelve Months
Ending
|
|
December 31,
2016
|
|
Operating
Profit
|
|
Tax
Impact
|
|
Earnings per Diluted
Share
|
Reported GAAP
Measure
|
$1,525 -
$1,625
|
|
$
-
|
|
$11.25 -
$12.00
|
Restructuring
Expense(a)
|
250
|
|
55
|
|
2.50
|
Acquisition Related
Transition Costs(b)
|
32
|
|
7
|
|
0.32
|
Legacy Product
Warranty and Liability Expense(c)
|
4
|
|
1
|
|
0.04
|
Ongoing Business
Measure
|
$1,800 -
$1,900
|
|
$
63
|
|
$14.00 -
$14.75
|
|
|
a.
|
RESTRUCTURING
EXPENSE - For the full year 2016, the company expects to
recognize restructuring charges of $250 million. The earnings per
diluted share impact is calculated based on an income tax impact of
$55 million.
|
b.
|
ACQUISITION
RELATED TRANSITION COSTS - For the full year 2016, the
company expects to recognize acquisition related transition costs
of $32 million. The expected earnings per diluted share impact is
calculated based on income tax impact of $7
million.
|
c.
|
LEGACY PRODUCT
WARRANTY AND LIABILITY EXPENSE - During the first quarter of
2016, the company recognized expenses of $4 million related to
legacy product warranty and liability actions. The earnings per
diluted share impact is calculated based on an income tax impact of
$1 million.
|
Free Cash Flow
As defined by the Company, free cash
flow is cash provided by (used in) operating activities after
capital expenditures, proceeds from the sale of assets and
businesses and changes in restricted cash. The reconciliation
provided below reconciles the projected full-year 2016 free cash
flow with cash provided by (used in) operating activities, the most
directly comparable GAAP financial measure.
(millions of
dollars)
|
2016
Outlook
|
Cash Provided by
(Used in) Operating Activities
|
$1,400 -
$1,550
|
Capital expenditures,
proceeds from sale of assets/businesses and change in restricted
cash*
|
(700) -
(750)
|
Free Cash
Flow
|
$700 -
$800
|
|
*The change in
restricted cash relates to the private placement funds paid by
Whirlpool to acquire majority control of Hefei Sanyo and which are
used to fund capital and technical resources to enhance Whirlpool
China's research and development and working capital.
|
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SOURCE Whirlpool Corporation