BENTON HARBOR, Mich.,
Dec. 15, 2014 /PRNewswire/ --
Whirlpool Corporation (NYSE: WHR) announced today accelerated
integration activities related to the recently completed
acquisitions of Indesit Company, S.p.A and a majority interest in
Hefei Rongshida Sanyo Electric Co., Ltd. In advance of the
company's upcoming Investor Day, the company is providing guidance
for 2015 and adjusting guidance for 2014 to include the expected
impact for both transactions.
"Both Indesit and Hefei are transformative acquisitions which
will enable sustainable growth with a balanced and leading
geographic portfolio," said Jeff M. Fettig, chairman and chief
executive officer of Whirlpool Corporation. "By accelerating
these integration activities, we expect to increase revenues, drive
synergies and grow earnings while continuing to deliver innovative
new products to consumers around the globe."
2015 OUTLOOK
For 2015, Whirlpool Corporation expects to report full-year GAAP
net earnings per diluted share of $10.75 to
$11.75 which includes acquisition related integration
costs. The company expects to report full-year ongoing
business earnings per diluted share of $14.00 to $15.00.
|
2015 EPS
Outlook
|
GAAP Diluted
EPS(i)
|
$10.75 -
$11.75
|
Restructuring Expense
(primarily acquisition related)
|
~2.85
|
Investment
Expense
|
~0.24
|
Pension Settlement
Charge
|
~0.11
|
Acquisition Purchase
Price Accounting Adjustment - Inventory
|
~0.07
|
Ongoing Business
Diluted EPS
|
$14.00–$15.00
|
(i) Diluted EPS available to
Whirlpool.
For full-year 2015, the company expects to generate free cash
flow(1) of $700 million to $800
million. Included in this guidance are restructuring cash
outlays of up to $250 million,
capital spending of $800 million to $850
million and U.S. pension contributions of approximately
$85 million.
2014 OUTLOOK
Whirlpool Corporation has adjusted its full-year 2014 GAAP net
earnings per diluted share guidance primarily to reflect
incremental acquisition expenses related to the accelerated
integration plans for Indesit Company and Hefei Rongshida
Sanyo. In addition, the company expects additional
unfavorable currency along with temporary new product transition
costs in North America related to
the previously announced new laundry product launches. The
company now expects to report full-year GAAP net earnings per
diluted share of $8.00 to $8.20 and
full-year ongoing business earnings per diluted share of
$10.90 to $11.10.
|
2014 EPS
Outlook
|
Prior GAAP Diluted
EPS(i) Guidance
|
$9.40 -
$9.90
|
Incremental
Acquisition Related Expense
|
~(0.87)
|
Currency and New
Product Transition Expense
|
~(0.68)
|
Current GAAP Diluted
EPS(i) Guidance
|
$8.00 -
$8.20
|
Restructuring
Expense
|
~1.24
|
Investment
Expense
|
~0.84
|
Acquisition Related
Expense
|
~0.98
|
Acquisition Purchase
Price Accounting Adjustment - Inventory
|
0.08
|
Brazilian (BEFIEX)
Tax Credits
|
(0.18)
|
Antitrust
Resolutions
|
0.02
|
Ongoing Business
Diluted EPS
|
$10.90 -
$11.10
|
(i) Diluted EPS available to
Whirlpool.
For the full-year 2014, the company continues to expect to
generate free cash flow(1) of $650 million to $700 million.
"Given our acquisitions and the opportunities that we have
around the world, we have created an outstanding platform with
multiple levers for profitable growth," said Fettig. "We
are committed to increasing shareholder value and plan to share
details of our vision and long-term growth strategy at our Investor
Day this week."
2014 INVESTOR DAY
Whirlpool Corporation (NYSE: WHR) will host an Investor Day on
Wednesday, December 17, 2014 in
Chicago, IL. The event
begins at 10 a.m. CT and will end
between noon and 1:00 p.m.
CT. Whirlpool will provide an overview of the
company's strategy and long-term financial targets, a discussion
about growth opportunities across Whirlpool Corporation's
businesses, and showcase global product innovations.
Presenting for Whirlpool Corporation will be Jeff M. Fettig, chairman and chief executive
officer; Marc Bitzer, vice chairman;
Michael A. Todman, vice chairman;
Larry Venturelli, executive vice
president and chief financial officer; and other key members of the
Whirlpool Corporation management team.
To listen to the Investor Day presentation, dial (800) 895-1549
and use confirmation code Whirlpool. International participants
should dial (785) 424-1057 and use confirmation code Whirlpool.
The event will also be webcast live on the company's Web site at
www.whirlpoolcorp.com and may be accessed by clicking on the
"Investors" tab located at the top of the page. To listen to
the live webcast, participants should visit the site at least 15
minutes prior to the conference call to download any required
streaming media software. Presentation materials and an
archived recording of the event will be available on the company's
Web site for at least 30 days.
About Whirlpool Corporation
Whirlpool Corporation is the world's leading global manufacturer
and marketer of major home appliances, with annual sales of
approximately $19 billion in 2013,
69,000 employees, and 59 manufacturing and technology research
centers around the world. The company markets Whirlpool,
Maytag, KitchenAid, Jenn-Air, Amana, Brastemp, Consul,
Bauknecht and other major brand names. Additional
information about the company can be found at
http://www.whirlpoolcorp.com.
Whirlpool Additional Information:
This document contains forward-looking statements about
Whirlpool Corporation and its consolidated subsidiaries
("Whirlpool") that speak only as of this date. Whirlpool 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,
productivity and material and oil-related prices. Many risks,
contingencies and uncertainties could cause actual results to
differ materially from Whirlpool's forward-looking statements.
Among these factors are: (1) intense competition in the home
appliance industry reflecting the impact of both new and
established global competitors, including Asian and European
manufacturers; (2) Whirlpool's ability to continue its
relationship with significant trade customers and the ability of
these trade customers to maintain or increase market share; (3)
acquisition and investment-related risk, including risks associated
with our acquisitions of Hefei Sanyo
and Indesit; (4) changes in economic conditions which affect
demand for our products, including the strength of the building
industry and the level of interest rates; (5) product liability and
product recall costs; (6) inventory and other asset risk;
(7) risks related to our international operations, including
changes in foreign regulations, regulatory compliance and
disruptions arising from natural disasters or terrorist attacks;
(8) the uncertain global economy; (9) the ability of
Whirlpool to achieve its business plans, productivity improvements,
cost control, price increases, leveraging of its global operating
platform, and acceleration of the rate of innovation;
(10) Whirlpool's ability to maintain its reputation and brand
image; (11) fluctuations in the cost of key materials (including
steel, plastic, resins, copper and aluminum) and components and the
ability of Whirlpool to offset cost increases;
(12) litigation, tax, and legal compliance risk and costs,
especially costs which may be materially different from the amount
we expect to incur or have accrued for; (13) the effects and
costs of governmental investigations or related actions by third
parties; (14) Whirlpool's ability to obtain and protect
intellectual property rights; (15) the ability of suppliers of
critical parts, components and manufacturing equipment to deliver
sufficient quantities to Whirlpool in a timely and cost-effective
manner; (16) health care cost trends, regulatory changes and
variations between results and estimates that could increase future
funding obligations for pension and postretirement benefit
plans; (17) information technology system failures and
data security breaches; (18) the impact of labor relations;
(19) our ability to attract, develop and retain executives and
other qualified employees; (20) changes in the legal and
regulatory environment including environmental and health and
safety regulations; and (21) the ability of Whirlpool to manage
foreign currency fluctuations.
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.
(1) A reconciliation of free cash flow, a non-GAAP financial
measure, to cash provided by (used in) operating activities and
other important information, appears below.
Free Cash Flow
As defined by the company, free cash flow is cash provided by
(used in) operating activities after capital expenditures and
proceeds from the sale of assets and businesses. The reconciliation
provided below reconciles 2014 and 2015 projected full-year free
cash flow with cash provided by (used in) operating activities, the
most directly comparable GAAP financial measure.
(millions of
dollars)
|
2014
Outlook
|
|
2015
Outlook
|
Cash Provided by
(Used In) Operating Activities
|
$1,325
|
-
|
$1,425
|
|
$1,500
|
-
|
$1,650
|
Capital Expenditures
and Proceeds from Sale of Assets/Businesses
|
(675)
|
-
|
(725)
|
|
(800)
|
-
|
(850)
|
Free Cash
Flow
|
$650
|
-
|
$700
|
|
$700
|
-
|
$800
|
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SOURCE Whirlpool Corporation