BENTON HARBOR, Mich.,
April 28, 2015 /PRNewswire/ -- Whirlpool Corporation (NYSE:
WHR) announced today first-quarter GAAP net earnings of
$191 million, or $2.38 per diluted share, compared to $160 million, or $2.02 per diluted share, reported for the same
prior-year period. Ongoing business earnings per diluted
share(1) totaled $2.14,
compared to $2.20 in the same
prior-year period. The benefit of cost and capacity-reduction
initiatives, ongoing cost productivity and benefits from the
acquisition integration activities were offset by unfavorable
currency and a weakened demand environment in Brazil.
Net sales in the quarter were a first-quarter record
$4.8 billion compared to $4.4 billion during the same prior-year period,
an increase of over 11 percent. Excluding the impact of both
foreign currency and Brazilian (BEFIEX) tax credits, sales
increased over 23 percent, primarily driven by the
acquisitions.
"Our integration plans in Europe and China remain on track and we have taken
actions to overcome recent currency movements," said
Jeff M. Fettig, chairman and chief
executive officer of Whirlpool Corporation. "We continue to invest
in our leading brand portfolio and innovative new products while
adjusting to a continuing volatile global economy."
First-quarter GAAP operating profit totaled $303 million compared to $281 million in the same prior-year period.
Record first-quarter ongoing business operating
profit(2) totaled $318
million, or 6.6 percent of sales, compared to $302 million, or 6.9 percent of sales, in the
same prior-year period. Ongoing business operating margins
benefited from acquisition integration activities and cost and
capacity-reduction initiatives, which were offset by unfavorable
currency.
For the three months ended March 31, 2015, the company
reported cash used in operating activities of $(569) million compared to cash used in operating
activities of $(339) million in the
same prior-year period. Whirlpool Corporation reported free cash
flow(3) of $(651) million
in the first quarter of 2015 compared to free cash
flow(3) of $(456) million
in the same prior-year period. As expected, the decrease in free
cash flow was primarily driven by seasonal working capital
requirements associated with the acquisitions.
OUTLOOK
Whirlpool Corporation has adjusted its full-year 2015 guidance
to reflect the impact of unfavorable currency and a weakened demand
environment in Brazil. The company
now expects full-year GAAP net earnings per diluted share available
to Whirlpool of $9.00 to $10.00 and
full-year ongoing business earnings per diluted share of
$12.00 to $13.00.
Whirlpool Corporation recently announced cost-based price
increases in Latin America and
Eastern Europe, which along with
strong cost productivity programs are expected to deliver
significant second-half 2015 margin expansion. The company expects
to deliver record sales and ongoing earnings for the year.
|
2015 Diluted
EPS(i)
|
|
GAAP
|
Ongoing
Business
|
Previous
Outlook
|
$10.75 -
$11.75
|
$14.00 -
$15.00
|
Global Currency
Devaluation and Brazil Demand Environment
|
(2.00)
|
(2.00)
|
Benefit Plan
Curtailment Gain
|
0.44
|
—
|
Combined Acquisition
Related Transition Cost
|
(0.14)
|
—
|
Antitrust
Resolutions
|
(0.09)
|
—
|
Current
Outlook
|
$9.00 -
$10.00
|
$12.00 -
$13.00
|
|
2015 EPS
Outlook
|
GAAP Diluted
EPS(i)
|
$9.00 -
$10.00
|
Benefit Plan
Curtailment Gain
|
(0.44)
|
Restructuring
Expense
|
2.84
|
Combined Acquisition
Related Transition Cost
|
0.38
|
Pension Settlement
Charge
|
0.12
|
Antitrust
Resolutions
|
0.09
|
Ongoing Business
Diluted EPS
|
$12.00 -
$13.00
|
|
|
(i) Diluted EPS
available to Whirlpool.
|
For the full-year 2015, the company now expects to generate free
cash flow(3) of approximately $700 million. Included in this guidance are
restructuring cash outlays of up to $250
million, capital spending of approximately $750 million to $800 million and U.S. pension
contributions of approximately $72
million.
"Our previously outlined long-term growth strategy remains on
track," said Fettig, "and we are committed to creating
significant shareholder value with our larger global platform,
competitive cost structure, industry leading brands and broad
product offering."
FIRST-QUARTER REGIONAL REVIEW
Whirlpool North
America
Whirlpool North America
reported first-quarter net sales of $2.3
billion, up slightly from the same prior-year period.
Excluding the impact of currency, sales increased over 2
percent.
The region reported a first-quarter operating profit of
$276 million, compared to
$228 million in the same prior-year
period. During the first quarter of 2015, the region incurred a
one-time, non-cash benefit plan curtailment gain of approximately
$47 million. Ongoing business segment
operating profit(4) totaled $230
million, or 9.8 percent of sales, compared to $228 million, or 9.8 percent of sales, in the
same prior-year period. Ongoing cost productivity and higher unit
volumes were offset by unfavorable currency and the completion of
prior-year product transitions.
The company expects full-year 2015 industry unit shipments to
increase by approximately 4 percent.
Whirlpool Europe,
Middle East and Africa
Whirlpool Europe, Middle East and Africa reported first-quarter net sales of
$1.3 billion compared to $0.7 billion in the same prior-year period.
The region reported first-quarter operating profit of
$17 million, compared to $7 million in the same prior-year period.
During the first quarter of 2015, the region incurred a one-time,
non-cash pension settlement charge of approximately $12 million. Ongoing business segment operating
profit(4) totaled $35
million, or 2.7 percent of sales, compared to $7 million, or 1.0 percent of sales, in the same
prior-year period. The benefits from the acquisition integration
activities, ongoing cost productivity and the benefit of cost and
capacity-reduction initiatives more than offset unfavorable
currency.
The company expects full-year 2015 industry unit shipments to be
flat to up 2 percent.
Whirlpool Latin
America
Whirlpool Latin America
reported first-quarter net sales of $0.9
billion, compared to $1.2
billion in the same prior-year period. Excluding the impact
of currency and BEFIEX tax credits, sales decreased approximately
11 percent.
The region reported first-quarter GAAP operating profit of
$59 million, compared to $123 million in the same prior-year period.
During the first quarter of 2014, the company monetized
$14 million of BEFIEX tax credits.
Ongoing business segment operating profit(4) totaled
$59 million, or 6.6 percent of sales,
compared to $109 million, or 9.2
percent of sales, in the same prior-year period. Improved product
price/mix was offset by unfavorable currency and lower unit volumes
due to a weaker demand environment in Brazil.
The company now expects full-year 2015 industry unit shipments
to be down 10 to 12 percent.
Whirlpool Asia
Whirlpool Asia reported
first-quarter net sales of $378
million compared to $166
million in the same prior-year period.
The region reported a first-quarter GAAP operating profit of
$24 million, compared to an operating
profit of $5 million in the same
prior-year period. Ongoing business segment operating
profit(4) totaled $26
million, or 6.9 percent of sales, compared to $5 million, or 2.9 percent of sales, in the same
prior-year period. The benefits from the acquisition integration
activities, ongoing cost productivity, improved price/mix and the
benefits of cost and capacity-reduction initiatives positively
impacted margins.
The company expects full-year 2015 industry unit shipments to be
up 1 to 3 percent.
(1) A reconciliation of ongoing business earnings per
diluted share, a non-GAAP financial measure, to reported net
earnings per diluted share available to Whirlpool and other
important information, appears below.
(2) A reconciliation of ongoing business operating profit, a
non-GAAP financial measure, to reported operating profit and other
important information, appears below.
(3) 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.
(4) A reconciliation of ongoing business segment operating
profit (loss), a non-GAAP financial measure, to reported segment
operating profit (loss) and other important information, appears
below.
FIRST-QUARTER 2015 // PRODUCT LEADERSHIP, INNOVATION AND
AWARDS
Whirlpool Corporation is at the forefront of the home appliance
industry - with deep consumer insights and a strong portfolio of
brands worldwide. Our products are ideally positioned with
consumers because they are as inventive as they are purposeful. We
offer compelling home solutions that expand beyond our core
appliance business, delivering innovation that matters to consumers
and positioning our company for continued growth and
profitability.
Company Awards & Recognition
- Whirlpool Corporation has been named as one of Fortune
Magazine's World's Most Admired Companies for the fifth consecutive
year.
- The U.S. Environmental Protection Agency (EPA) has recognized
Whirlpool Corporation with a 2015 ENERGY STAR® Partner of the Year
award.
- Whirlpool Brazil was
recognized as most innovative company in the southern region by
Amanha magazine.
- Whirlpool Brazil was
recognized among the most remarkable companies by Consumidor
Moderno magazine.
Product Innovation
- Whirlpool Corporation announced that nine Whirlpool brand
cooking appliances are among the industry's first certified under
the Association for Home Appliance Manufacturers (AHAM)
Sustainability Standard for Cooking Products.
- Whirlpool Supreme Care washing machine in EMEA was
honored with the 2015 iF Design Award seal of excellence, a prize
that recognizes its outstanding design quality in "Product"
discipline and the "Household" category.
- Whirlpool India's Protton
World Series Refrigerator was selected for the prestigious
India Design Mark.
- KitchenAid brand, beginning a new chapter in its
celebrated history as an American product design innovator,
unveiled a dramatically designed major appliance collection
available in stainless steel, black, white and black stainless
steel, an industry first.
- KitchenAid has introduced a first-of-its-kind Magnetic Drive
Blender for home use.
About Whirlpool Corporation
Whirlpool Corporation
(NYSE: WHR) is the number one major appliance manufacturer in the
world, with approximately $20 billion
in annual sales, 100,000 employees and 70 manufacturing and
technology research centers throughout the world in 2014. The
company markets Whirlpool, KitchenAid, Maytag, Consul,
Brastemp, Amana, Bauknecht, Jenn-Air, Indesit and other
major brand names in more than 170 countries. Additional
information about the company can be found
at whirlpoolcorp.com, or find us on Twitter at
@WhirlpoolCorp.
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 raw
material 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) acquisition and investment-related risk, including risk
associated with our acquisitions of Hefei
Sanyo and Indesit, and risk associated with our increased
presence in emerging markets; (3) Whirlpool's ability to continue
its relationship with significant trade customers and the ability
of these trade customers to maintain or increase market share;
(4) risks related to our international operations, including
changes in foreign regulations, regulatory compliance and
disruptions arising from natural disasters or terrorist attacks;
(5) 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; (6) the ability of
Whirlpool to manage foreign currency fluctuations; (7) 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; (8) the effects and costs of governmental
investigations or related actions by third parties; (9) changes in
the legal and regulatory environment including environmental and
health and safety regulations; (10) Whirlpool's ability to maintain
its reputation and brand image; (11) 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; (12)
information technology system failures and data security breaches;
(13) product liability and product recall costs; (14) inventory and
other asset risk; (15) changes in economic conditions which affect
demand for our products, including the strength of the building
industry and the level of interest rates; (16) the ability of
suppliers of critical parts, components and manufacturing equipment
to deliver sufficient quantities to Whirlpool in a timely and
cost-effective manner; (17) the uncertain global economy; (18) our
ability to attract, develop and retain executives and other
qualified employees; (19) the impact of labor relations; (20)
Whirlpool's ability to obtain and protect intellectual property
rights; and (21) health care cost trends, regulatory changes and
variations between results and estimates that could increase future
funding obligations for pension and postretirement benefit
plans.
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.
WHIRLPOOL
CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)
FOR THE PERIODS ENDED MARCH 31
(Millions of dollars, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
2015
|
|
2014
|
Net
sales
|
$
|
4,846
|
|
$
|
4,363
|
Expenses
|
|
|
|
Cost of products
sold
|
3,993
|
|
3,608
|
Gross
margin
|
853
|
|
755
|
Selling, general and
administrative
|
498
|
|
439
|
Intangible
amortization
|
19
|
|
6
|
Restructuring
costs
|
33
|
|
29
|
Operating
profit
|
303
|
|
281
|
Other income
(expense)
|
|
|
|
Interest and sundry
income (expense)
|
(53)
|
|
(23)
|
Interest
expense
|
(43)
|
|
(44)
|
Earnings before
income taxes
|
207
|
|
214
|
Income tax
expense
|
9
|
|
50
|
Net
earnings
|
198
|
|
164
|
Less: Net earnings
available to noncontrolling interests
|
7
|
|
4
|
Net earnings
available to Whirlpool
|
$
|
191
|
|
$
|
160
|
Per share of
common stock
|
|
|
|
Basic net earnings
available to Whirlpool
|
$
|
2.42
|
|
$
|
2.06
|
Diluted net earnings
available to Whirlpool
|
$
|
2.38
|
|
$
|
2.02
|
Dividends
declared
|
$
|
0.75
|
|
$
|
0.625
|
Weighted-average
shares outstanding (in millions)
|
|
|
|
Basic
|
78.8
|
|
78.1
|
Diluted
|
80.0
|
|
79.4
|
|
|
|
|
Comprehensive income
(loss)
|
$
|
(13)
|
|
$
|
206
|
WHIRLPOOL
CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(Millions of dollars, except share data)
|
|
|
|
|
|
|
March 31,
2015
(Unaudited)
|
|
December 31,
2014
|
|
|
|
|
|
Assets
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and
equivalents
|
$
|
704
|
|
$
|
1,026
|
Accounts receivable,
net of allowance of $156 and $154, respectively
|
2,518
|
|
2,768
|
Inventories
|
3,002
|
|
2,740
|
Deferred income
taxes
|
341
|
|
417
|
Prepaid and other
current assets
|
1,149
|
|
1,147
|
Total current
assets
|
7,714
|
|
8,098
|
Property, net of
accumulated depreciation of $5,801 and $5,959,
respectively
|
3,779
|
|
3,981
|
Goodwill
|
2,736
|
|
2,807
|
Other intangibles,
net of accumulated amortization of $278 and $267,
respectively
|
2,698
|
|
2,803
|
Deferred income
taxes
|
1,891
|
|
1,900
|
Other noncurrent
assets
|
390
|
|
413
|
Total
assets
|
$
|
19,208
|
|
$
|
20,002
|
Liabilities and
stockholders' equity
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$
|
4,173
|
|
$
|
4,730
|
Accrued
expenses
|
829
|
|
852
|
Accrued advertising
and promotions
|
417
|
|
673
|
Employee
compensation
|
438
|
|
499
|
Notes
payable
|
441
|
|
569
|
Current maturities of
long-term debt
|
213
|
|
234
|
Other current
liabilities
|
879
|
|
846
|
Total current
liabilities
|
7,390
|
|
8,403
|
Noncurrent
liabilities
|
|
|
|
Long-term
debt
|
3,977
|
|
3,544
|
Pension
benefits
|
1,064
|
|
1,123
|
Postretirement
benefits
|
437
|
|
446
|
Other noncurrent
liabilities
|
596
|
|
690
|
Total noncurrent
liabilities
|
6,074
|
|
5,803
|
Stockholders'
equity
|
|
|
|
Common stock, $1 par
value, 250 million shares authorized, 110 million shares
issued, and 78 million shares outstanding
|
110
|
|
110
|
Additional paid-in
capital
|
2,576
|
|
2,555
|
Retained
earnings
|
6,340
|
|
6,209
|
Accumulated other
comprehensive loss
|
(2,048)
|
|
(1,840)
|
Treasury stock, 32
million shares
|
(2,149)
|
|
(2,149)
|
Total Whirlpool
stockholders' equity
|
4,829
|
|
4,885
|
Noncontrolling
interests
|
915
|
|
911
|
Total stockholders'
equity
|
5,744
|
|
5,796
|
Total liabilities and
stockholders' equity
|
$
|
19,208
|
|
$
|
20,002
|
WHIRLPOOL
CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE PERIODS ENDED MARCH 31
(Millions of dollars)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
Operating
activities
|
|
|
|
Net
earnings
|
$
|
198
|
|
|
$
|
164
|
Adjustments to
reconcile net earnings to cash used in operating
activities:
|
|
|
|
Depreciation and
amortization
|
161
|
|
|
127
|
Curtailment
gain
|
(47)
|
|
|
—
|
Changes in assets and
liabilities:
|
|
|
|
Accounts
receivable
|
58
|
|
|
(78)
|
Inventories
|
(394)
|
|
|
(243)
|
Accounts
payable
|
(285)
|
|
|
(172)
|
Accrued advertising
and promotions
|
(227)
|
|
|
(152)
|
Accrued expenses and
current liabilities
|
37
|
|
|
23
|
Taxes deferred and
payable, net
|
(48)
|
|
|
20
|
Accrued pension and
postretirement benefits
|
(17)
|
|
|
(31)
|
Employee
compensation
|
(45)
|
|
|
38
|
Other
|
40
|
|
|
(35)
|
Cash used in
operating activities
|
(569)
|
|
|
(339)
|
Investing
activities
|
|
|
|
Capital
expenditures
|
(126)
|
|
|
(123)
|
Proceeds from sale of
assets and business
|
33
|
|
|
6
|
Change in restricted
cash
|
11
|
|
|
—
|
Investment in related
businesses
|
(15)
|
|
|
(21)
|
Cash used in
investing activities
|
(97)
|
|
|
(138)
|
Financing
activities
|
|
|
|
Proceeds from
borrowings of long-term debt
|
523
|
|
|
817
|
Repayments of
long-term debt
|
(69)
|
|
|
(2)
|
Net proceeds from
short-term borrowings
|
(41)
|
|
|
(8)
|
Dividends
paid
|
(60)
|
|
|
(48)
|
Common stock
issued
|
34
|
|
|
11
|
Cash provided by
financing activities
|
387
|
|
|
770
|
Effect of exchange
rate changes on cash and equivalents
|
(43)
|
|
|
(1)
|
Increase (decrease)
in cash and equivalents
|
(322)
|
|
|
292
|
Cash and equivalents
at beginning of period
|
1,026
|
|
|
1,380
|
Cash and equivalents
at end of period
|
$
|
704
|
|
|
$
|
1,672
|
SUPPLEMENTAL INFORMATION - CONSOLIDATED
FINANCIAL STATEMENTS RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES
(Millions of dollars except per share data)
(Unaudited)
We supplement the reporting of our financial information
determined under U.S. generally accepted accounting principles
(GAAP) with certain non-GAAP financial measures, some of which we
refer to as "ongoing business" measures, including ongoing business
operating profit (loss), ongoing business operating margin,
earnings before interest and taxes (EBIT), earnings before interest
and taxes (EBIT) margin, ongoing business earnings before interest
and taxes (EBIT), ongoing business earnings before interest and
taxes (EBIT) margin, ongoing business earnings (loss) before income
taxes, ongoing business earnings per diluted share, ongoing
business segment operating profit (loss), ongoing business segment
operating margin, sales excluding foreign currency and BEFIEX, and
free cash flow. Ongoing business measures exclude items that may
not be indicative of, or are unrelated to, results from our ongoing
business operations and provide a better baseline for analyzing
trends in our underlying businesses. Sales excluding foreign
currency and BEFIEX is calculated by translating the current period
net sales excluding BEFIEX, in functional currency, to U.S. dollars
using the prior-year period's exchange rate compared to the
prior-year period net sales excluding BEFIEX. Management
believes that sales excluding foreign currency and BEFIEX provides
stockholders with a clearer basis to assess our results over
time. Management believes that free cash flow provides
investors and stockholders with a relevant measure of liquidity and
a useful basis for assessing the company's ability to fund its
activities and obligations. We believe that these non-GAAP measures
provide meaningful information to assist investors and stockholders
in understanding our financial results and assessing our prospects
for future performance. Because non-GAAP financial measures are not
standardized, it may not be possible to compare these financial
measures with other companies' non-GAAP financial measures having
the same or similar names. These ongoing business financial
measures should not be considered in isolation or as a substitute
for reported operating profit (loss), net earnings per diluted
share available to Whirlpool, reported operating profit (loss) by
segment, net sales, and cash provided by (used in) operating
activities, the most directly comparable GAAP financial measures.
These non-GAAP financial measures reflect an additional way of
viewing aspects of our operations that, when viewed with our GAAP
results and the following reconciliations to corresponding GAAP
financial measures, provide a more complete understanding of our
business. We strongly encourage investors and stockholders to
review our financial statements and publicly-filed reports in their
entirety and not to rely on any single financial measure.
Ongoing Business Operating Profit, Ongoing Business Earnings
Before Interest and Taxes and Ongoing Business Earnings Per Diluted
Share
The reconciliation provided below reconciles the non-GAAP
financial measures ongoing business operating profit, ongoing
business earnings before interest and taxes 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 three months ended
March 31, 2015. Ongoing business operating margin is
calculated by dividing ongoing business operating profit by net
sales.
|
Three Months
Ended
|
|
March 31,
2015
|
|
Operating
Profit
|
|
Earnings
Before
Interest &
Taxes(5)
|
|
Earnings per
Diluted Share
|
Reported GAAP
Measure
|
$
|
303
|
|
|
$
|
250
|
|
|
$
|
2.38
|
|
Benefit Plan
Curtailment Gain(a)
|
(47)
|
|
|
(47)
|
|
|
(0.44)
|
|
Restructuring
Expense(b)
|
33
|
|
|
33
|
|
|
0.31
|
|
Combined Acquisition
Related Transition Cost & Inventory Purchase Price
Allocation(c)
|
16
|
|
|
17
|
|
|
0.20
|
|
Pension Settlement
Charge(d)
|
12
|
|
|
12
|
|
|
0.12
|
|
Antitrust
Resolutions(e)
|
—
|
|
|
10
|
|
|
0.09
|
|
Normalized Tax Rate
Adjustment(f)
|
—
|
|
|
—
|
|
|
(0.52)
|
|
Ongoing Business
Measure
|
$
|
318
|
|
|
$
|
276
|
|
|
$
|
2.14
|
|
(5) Earnings Before Interest & Taxes is a non-GAAP measure
calculated by adding Interest and sundry income (expense)
[approximately $(53) million] and
Operating Profit
Ongoing Business Operating Profit, Ongoing Business Earnings
Before Interest and Taxes and Ongoing Business Earnings Per
Diluted Share
The reconciliation provided below reconciles the non-GAAP
financial measures ongoing business operating profit, ongoing
business earnings before interest and taxes 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 three months ended
March 31, 2014. Ongoing business operating margin is
calculated by dividing ongoing business operating profit by net
sales excluding BEFIEX.
|
Three Months
Ended
|
|
March 31,
2014
|
|
Operating
Profit
|
|
Earnings
Before
Interest &
Taxes(5)
|
|
Earnings per
Diluted Share
|
Reported GAAP
Measure
|
$
|
281
|
|
|
$
|
258
|
|
|
$
|
2.02
|
|
Brazilian (BEFIEX)
Tax Credits(g)
|
(14)
|
|
|
(14)
|
|
|
(0.18)
|
|
Restructuring
Expense(b)
|
29
|
|
|
29
|
|
|
0.27
|
|
Investment
Expense(h)
|
6
|
|
|
8
|
|
|
0.08
|
|
Antitrust
Resolutions(e)
|
—
|
|
|
1
|
|
|
0.01
|
|
Ongoing Business
Measure
|
$
|
302
|
|
|
$
|
282
|
|
|
$
|
2.20
|
|
(5) Earnings Before Interest & Taxes is a non-GAAP measure
calculated by adding Interest and sundry income (expense)
[approximately $(23) million] and
Operating Profit
Ongoing Business Segment Operating Profit
(Loss)
The reconciliation provided below reconciles the non-GAAP
financial measure ongoing business segment operating profit (loss)
with the most directly comparable GAAP financial measure, segment
operating profit (loss), for the three months ended March 31,
2015. Ongoing business segment operating margin is calculated by
dividing ongoing business segment operating profit (loss) by
segment net sales.
|
Three Months
Ended
|
|
March 31,
2015
|
|
Segment Operating
Profit (Loss)
|
|
Benefit Plan
Curtailment Gain(a)
|
|
Restructuring
Expense(b)
|
|
Combined
Acquisition Related
Transition Cost &
Inventory Purchase
Price Allocation(c)
|
|
EMEA Pension
Settlement(d)
|
|
Ongoing Business
Segment Operating Profit (Loss)
|
North
America
|
$
|
276
|
|
|
$
|
(47)
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
230
|
|
Latin
America
|
59
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
59
|
|
EMEA
|
17
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
12
|
|
|
35
|
|
Asia
|
24
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
26
|
|
Other/Eliminations
|
(73)
|
|
|
—
|
|
|
33
|
|
|
8
|
|
|
—
|
|
|
(32)
|
|
Total Whirlpool
Corporation
|
$
|
303
|
|
|
$
|
(47)
|
|
|
$
|
33
|
|
|
$
|
16
|
|
|
$
|
12
|
|
|
$
|
318
|
|
The reconciliation provided below reconciles the non-GAAP
financial measure ongoing business segment operating profit (loss)
with the most directly comparable GAAP financial measure, reported
segment operating profit (loss), for the three months ended
March 31, 2014. Ongoing business segment operating margin is
calculated by dividing ongoing business segment operating profit
(loss) by segment net sales excluding BEFIEX.
|
Three Months
Ended
|
|
March 31,
2014
|
|
Segment Operating
Profit (Loss)
|
|
Restructuring
Expense(b)
|
|
Brazilian (BEFIEX)
Tax Credits(g)
|
|
Investment
Expense(h)
|
|
|
Ongoing Business
Segment Operating Profit (Loss)
|
North
America
|
$
|
228
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
228
|
|
|
Latin
America
|
123
|
|
|
—
|
|
|
(14)
|
|
|
—
|
|
|
|
109
|
|
|
EMEA
|
7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
7
|
|
|
Asia
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
5
|
|
|
Other/Eliminations
|
(82)
|
|
|
29
|
|
|
—
|
|
|
6
|
|
|
|
(47)
|
|
|
Total Whirlpool
Corporation
|
$
|
281
|
|
|
$
|
29
|
|
|
$
|
(14)
|
|
|
$
|
6
|
|
|
$
|
302
|
|
|
Footnotes:
a. During the first quarter of 2015, we recorded a benefit
plan curtailment gain of $47 million.
The earnings per diluted share impact is calculated based on an
income tax impact of $11 million.
b. During the first quarters of 2015 and 2014, we recorded
restructuring charges of $33 million
and $29 million, respectively. The
earnings per diluted share impacts are calculated based on income
tax impacts of $8 million and
$7 million, respectively.
c. During the first quarter of 2015, we recognized
acquisition related transition costs of $15
million associated with the acquisition of a majority
interest in Hefei Sanyo and the
acquisition of Indesit. The earnings per diluted share impact is
calculated based on an income tax impact of $4 million. During the first quarter of 2015, we
recognized a $2 million inventory
purchase price allocation adjustment. The earnings per diluted
share impact is calculated based on an income tax impact of
$0 million.
d. During the first quarter of 2015, the company
recognized expenses of $12 million
related to an EMEA pension settlement. The earnings per diluted
share impact is calculated based on an income tax impact of
$3 million.
e. During the first quarters of 2015 and 2014, we
recognized expenses of approximately $10
million and $1 million,
respectively, related to antitrust resolutions. The earnings per
diluted share impacts are calculated based on income tax impacts of
$2 million and $0 million, respectively.
f. During the first quarters of 2015 and 2014, we made
adjustments to ongoing business diluted EPS to reconcile specific
items reported to anticipated full-year effective tax rates of
approximately 24%.
g. During the first quarter of 2014, we monetized
Brazilian (BEFIEX) tax credits of $14
million. The earnings per diluted share impact is calculated
based on an income tax impact of $0
million.
h. During the first quarter of 2014 we recognized an
investment expense of $8 million
primarily related to the acquisition of a majority interest in
Hefei Sanyo completed in Q4 2014.
The earnings per diluted share impact is calculated based on an
income tax impact of $2 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 three-month 2015
and 2014 and projected full-year free cash flow with cash provided
by (used in) operating activities, the most directly comparable
GAAP financial measure.
|
Three Months
Ended
March 31,
|
|
|
|
|
(millions of
dollars)
|
2015
|
2014
|
|
2015
Outlook
|
Cash Provided by
(Used in) Operating Activities
|
$(569)
|
$(339)
|
|
$1,450
|
-
|
$1,500
|
Capital expenditures,
proceeds from sale of assets/businesses
|
(93)
|
(117)
|
|
(750)
|
-
|
(800)
|
Change in restricted
cash*
|
11
|
—
|
|
—
|
Free Cash
Flow
|
$(651)
|
$(456)
|
|
~$700
|
*Change in restricted cash relates to the private placement
funds paid by Whirlpool to acquire majority control of Hefei Sanyo and which are released to fund
approved capital expenditures and working capital.
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SOURCE Whirlpool Corporation