BENTON HARBOR, Mich.,
April 26, 2016 /PRNewswire/ -- Whirlpool Corporation
(NYSE: WHR) announced today first-quarter GAAP net earnings of
$150 million, or $1.92 per diluted share, compared to $191 million, or $2.38 per diluted share, reported for the same
prior-year period. Ongoing business earnings per diluted
share(1) totaled a first-quarter record $2.63 compared to $2.14 in the same prior-year period, primarily
driven by acquisition synergies, the benefits of cost and
capacity-reduction initiatives and ongoing cost productivity.
Net sales in the quarter were $4.6
billion compared to $4.8
billion during the same prior-year period. Excluding the
impact of currency, sales increased by 1 percent.
"Our record first-quarter results were in line with our
expectations and we completed our existing share repurchase
program," said Jeff M. Fettig,
chairman and chief executive officer of Whirlpool Corporation. "We
remain confident in our ability to deliver our 2016 guidance as we
capitalize on robust demand in the U.S., new product
introductions and strong productivity around the globe."
First-quarter GAAP operating profit totaled $283 million compared to $303 million in the same prior-year period.
Record first-quarter ongoing business operating
profit(2) totaled $339
million, or approximately 7.3 percent of sales, compared to
$318 million, or 6.6 percent of
sales, in the same prior-year period. Acquisition synergies, the
benefits of cost and capacity-reduction initiatives, and ongoing
cost productivity more than offset unfavorable currency and weak
emerging market demand.
For the three months ended March 31, 2016, the company
reported cash used in operating activities of $(661) million compared to $(569) million in the same prior-year period.
Whirlpool Corporation reported free cash flow(3) of
$(739) million in the first three
months of 2016 compared to $(651)
million in the same prior-year period.
OUTLOOK
For the full year 2016, Whirlpool Corporation expects to report
GAAP earnings per diluted share of $11.25 to
$12.00 and ongoing business earnings per diluted share of
$14.00 to $14.75.
|
2016 EPS
Outlook
|
GAAP Diluted
EPS(i)
|
$11.25 -
$12.00
|
Restructuring
Expense
|
2.50
|
Combined Acquisition
Related Transition Costs
|
0.32
|
Legacy Product
Warranty and Liability Expense
|
0.04
|
Ongoing Business
Diluted EPS(i)
|
$14.00 -
$14.75
|
|
(i) Diluted
EPS available to Whirlpool.
|
For the full year 2016, the company expects to generate free
cash flow(3) of $700 to $800
million. Included in this guidance are acquisition related
restructuring cash outlays of up to $200
million, legacy product warranty and liability costs of
$155 million and capital spending of
$700 to $750 million.
"Our strategy to create long-term value for our shareholders
remains unchanged," said Fettig. "We remain focused on delivering
substantial shareholder value by leveraging our leading brand and
product innovation, larger global footprint and best cost
structure. In addition to our strong business performance, with our
$1 billion share repurchase program
and increased dividend we have appropriate flexibility to deliver
on our capital allocation priorities."
FIRST-QUARTER REGIONAL REVIEW
Whirlpool North
America
Whirlpool North America
reported first-quarter net sales of $2.4
billion, compared to $2.3
billion in the same prior-year period. Excluding the impact
of currency, sales increased 5 percent.
The region reported a first-quarter operating profit of
$250 million, compared to
$276 million in the same prior-year
period. Ongoing business segment operating profit(4)
totaled a first-quarter record of $253
million, or 10.5 percent of sales, compared to $230 million, or 9.8 percent of sales, in the
same prior-year period. Revenue growth and ongoing cost
productivity more than offset unfavorable currency.
The company expects full-year 2016 industry unit shipments to
increase by 5 - 6 percent.
Whirlpool Europe,
Middle East and Africa
Whirlpool Europe, Middle East and Africa reported first-quarter net sales of
$1.2 billion, compared to
$1.3 billion in the same prior-year
period. Excluding the impact of currency, sales decreased 3
percent.
The region reported first-quarter operating profit of
$55 million, compared to $17 million in the same prior-year period.
Ongoing business segment operating profit(4) totaled
$58 million, or 4.9 percent of sales,
compared to $35 million, or 2.7
percent of sales, in the same prior-year period. Acquisition
synergies and ongoing cost productivity more than offset
unfavorable currency and lower unit volumes.
The company expects full-year 2016 industry unit shipments to be
flat to up 2 percent.
Whirlpool Latin
America
Whirlpool Latin America
reported first-quarter net sales of $0.7
billion, compared to $0.9
billion in the same prior-year period. Excluding the impact
of currency, sales decreased by 4 percent.
The region reported first-quarter GAAP operating profit of
$42 million, or 5.9 percent of sales,
compared to $59 million, or 6.6
percent of sales, in the same prior-year period. Improved price/mix
and the benefits of cost and capacity-reduction initiatives
partially offset unfavorable currency and a weaker demand
environment in Brazil.
The company expects full-year 2016 industry unit shipments in
Brazil to decrease by 10
percent.
Whirlpool Asia
Whirlpool Asia reported
first-quarter net sales of $371
million, compared to $378
million in the same prior-year period. Excluding the impact
of currency, sales increased 3 percent.
The region reported a first-quarter GAAP operating profit of
$25 million, compared to $24 million in the same prior-year period.
Ongoing business segment operating profit(4) totaled
$27 million, or 7.3 percent of sales,
compared to $26 million, or 6.9
percent of sales, in the same prior-year period, primarily driven
by ongoing cost productivity and unit volume growth.
The company expects full-year 2016 industry unit shipments to be
flat.
(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 2016 // PRODUCT LEADERSHIP, INNOVATION AND
AWARDS
Whirlpool Corporation is the global home appliance industry
leader with deep consumer insights and a strong portfolio of brands
worldwide. We offer compelling home solutions both within and
beyond our core appliance business, delivering innovation that
matters to consumers and positioning our company for continued
growth and profitability.
Company Awards & Recognition
- Fortune Magazine named Whirlpool Corporation as one of the
World's Most Admired Companies in 2016 for the sixth consecutive
year in the Home Equipment, Furnishings industry.
- The Environmental Protection Agency (EPA) recognized Whirlpool
Corporation with the 2016 ENERGY STAR Partner of the Year - Product
Brand Owner Award for outstanding contribution to reducing
greenhouse gas emissions by manufacturing energy-efficient kitchen
and laundry appliances.
Product Innovation
- Three KitchenAid brand dishwashers were awarded the top
spot as ranked by an industry leading consumer magazine in
the United States.
- Whirlpool brand received nine International Consumer
Electronics Show (CES) Innovation Awards.
- The KitchenAid Torrent Magnetic Drive Blender was
chosen by Red Dot as a winner of the "Best of the Best" award for
ground-breaking product design.
- Bauknecht brand PremiumCare washers and dryers received
the iF Design Award for Design Excellence.
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.
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,
industry unit shipments, 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) the
uncertain global economy and changes in economic conditions which
affect demand for our products; (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) our ability to attract, develop and retain executives
and other qualified employees; (18) the impact of labor relations;
(19) Whirlpool's ability to obtain and protect intellectual
property rights; and (20) 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
|
|
2016
|
|
2015
|
Net
sales
|
$
|
4,616
|
|
$
|
4,846
|
Expenses
|
|
|
|
Cost of products
sold
|
3,795
|
|
3,993
|
Gross
margin
|
821
|
|
853
|
Selling, general and
administrative
|
473
|
|
498
|
Intangible
amortization
|
18
|
|
19
|
Restructuring
costs
|
47
|
|
33
|
Operating
profit
|
283
|
|
303
|
Other income
(expense)
|
|
|
|
Interest and sundry
income (expense)
|
(30)
|
|
(53)
|
Interest
expense
|
(38)
|
|
(43)
|
Earnings before
income taxes
|
215
|
|
207
|
Income tax
expense
|
59
|
|
9
|
Net
earnings
|
156
|
|
198
|
Less: Net earnings
available to noncontrolling interests
|
6
|
|
7
|
Net earnings
available to Whirlpool
|
$
|
150
|
|
$
|
191
|
Per share of
common stock
|
|
|
|
Basic net earnings
available to Whirlpool
|
$
|
1.94
|
|
$
|
2.42
|
Diluted net earnings
available to Whirlpool
|
$
|
1.92
|
|
$
|
2.38
|
Dividends
declared
|
$
|
0.90
|
|
$
|
0.75
|
Weighted-average
shares outstanding (in millions)
|
|
|
|
Basic
|
77.3
|
|
78.8
|
Diluted
|
78.1
|
|
80.0
|
|
|
|
|
Comprehensive income
(loss)
|
$
|
312
|
|
$
|
(13)
|
WHIRLPOOL
CORPORATION
|
CONSOLIDATED
CONDENSED BALANCE SHEETS
|
(Millions of
dollars, except share data)
|
|
|
|
March 31,
2016
|
|
December 31,
2015
|
|
(Unaudited)
|
|
|
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
$
|
699
|
|
$
|
772
|
Accounts receivable,
net of allowance of $171 and $160,
respectively
|
2,695
|
|
2,530
|
Inventories
|
3,096
|
|
2,619
|
Deferred income
taxes
|
452
|
|
451
|
Prepaid and other
current assets
|
952
|
|
953
|
Total current
assets
|
7,894
|
|
7,325
|
Property, net of
accumulated depreciation of $6,182 and $5,953,
respectively
|
3,800
|
|
3,774
|
Goodwill
|
3,054
|
|
3,006
|
Other intangibles,
net of accumulated amortization of $342 and $327,
respectively
|
2,697
|
|
2,678
|
Deferred income
taxes
|
1,847
|
|
1,850
|
Other noncurrent
assets
|
380
|
|
377
|
Total
assets
|
$
|
19,672
|
|
$
|
19,010
|
Liabilities and
stockholders' equity
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts
payable
|
$
|
4,286
|
|
$
|
4,403
|
Accrued
expenses
|
701
|
|
675
|
Accrued advertising
and promotions
|
518
|
|
706
|
Employee
compensation
|
474
|
|
452
|
Notes
payable
|
998
|
|
20
|
Current maturities of
long-term debt
|
760
|
|
508
|
Other current
liabilities
|
950
|
|
980
|
Total current
liabilities
|
8,687
|
|
7,744
|
Noncurrent
liabilities
|
|
|
Long-term
debt
|
3,251
|
|
3,470
|
Pension
benefits
|
1,010
|
|
1,025
|
Postretirement
benefits
|
347
|
|
390
|
Other noncurrent
liabilities
|
681
|
|
707
|
Total noncurrent
liabilities
|
5,289
|
|
5,592
|
Stockholders'
equity
|
|
|
|
|
Common stock, $1 par
value, 250 million shares authorized, 111 million shares
issued, and 76 million and 77 million shares outstanding,
respectively
|
111
|
|
111
|
Additional paid-in
capital
|
2,645
|
|
2,641
|
Retained
earnings
|
6,803
|
|
6,722
|
Accumulated other
comprehensive loss
|
(2,177)
|
|
(2,332)
|
Treasury stock, 35
million and 33 million shares, respectively
|
(2,624)
|
|
(2,399)
|
Total Whirlpool
stockholders' equity
|
4,758
|
|
4,743
|
Noncontrolling
interests
|
938
|
|
931
|
Total stockholders'
equity
|
5,696
|
|
5,674
|
Total liabilities and
stockholders' equity
|
$
|
19,672
|
|
$
|
19,010
|
WHIRLPOOL
CORPORATION
|
CONSOLIDATED
CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)
|
FOR THE PERIODS
ENDED MARCH 31
|
(Millions of
dollars)
|
|
|
|
Three Months
Ended
|
|
2016
|
|
2015
|
Operating
activities
|
|
|
|
Net
earnings
|
$
|
156
|
|
$
|
198
|
Adjustments to
reconcile net earnings to cash provided by (used in) operating
activities:
|
|
|
|
Depreciation and
amortization
|
168
|
|
161
|
Curtailment
gain
|
—
|
|
(47)
|
Changes in assets and
liabilities:
|
|
|
|
Accounts
receivable
|
(107)
|
|
58
|
Inventories
|
(398)
|
|
(394)
|
Accounts
payable
|
(228)
|
|
(285)
|
Accrued advertising
and promotions
|
(200)
|
|
(227)
|
Accrued expenses and
current liabilities
|
(30)
|
|
37
|
Taxes deferred and
payable, net
|
(21)
|
|
(48)
|
Accrued pension and
postretirement benefits
|
(19)
|
|
(17)
|
Employee
compensation
|
13
|
|
(45)
|
Other
|
5
|
|
40
|
Cash used in
operating activities
|
(661)
|
|
(569)
|
Investing
activities
|
|
|
Capital
expenditures
|
(85)
|
|
(126)
|
Proceeds from sale of
assets and business
|
4
|
|
33
|
Change in restricted
cash
|
3
|
|
11
|
Investment in related
businesses
|
—
|
|
(15)
|
Other
|
(15)
|
|
—
|
Cash used in
investing activities
|
(93)
|
|
(97)
|
Financing
activities
|
|
|
|
Proceeds from
borrowings of long-term debt
|
—
|
|
523
|
Repayments of
long-term debt
|
(5)
|
|
(69)
|
Net proceeds
(repayments) from short-term borrowings
|
966
|
|
(41)
|
Dividends
paid
|
(69)
|
|
(60)
|
Repurchase of common
stock
|
(225)
|
|
—
|
Common stock
issued
|
3
|
|
34
|
Cash provided by
financing activities
|
670
|
|
387
|
Effect of exchange
rate changes on cash and cash equivalents
|
11
|
|
(43)
|
Decrease in cash and
cash equivalents
|
(73)
|
|
(322)
|
Cash and cash
equivalents at beginning of period
|
772
|
|
1,026
|
Cash and cash
equivalents at end of period
|
$
|
699
|
|
$
|
704
|
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, 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.
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, 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.
First-Quarter 2015 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
|
Restructuring
Expense(a)
|
33
|
|
33
|
|
0.31
|
Benefit Plan
Curtailment Gain(b)
|
(47)
|
|
(47)
|
|
(0.44)
|
Combined Acquisition
Related Transition Costs and Inventory Purchase Price
Allocation(c)
|
16
|
|
17
|
|
0.20
|
Pension Settlement
Charges(d)
|
12
|
|
12
|
|
0.12
|
Antitrust and Dispute
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.
First-Quarter 2016 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, 2016. Ongoing business operating margin is
calculated by dividing ongoing business operating profit by net
sales.
|
Three Months
Ended
|
|
March 31,
2016
|
|
Operating
Profit
|
|
Earnings
Before
Interest &
Taxes(5)
|
|
Earnings per
Diluted Share
|
Reported GAAP
Measure
|
$
|
283
|
|
$
|
253
|
|
$
|
1.92
|
Restructuring
Expense(a)
|
47
|
|
47
|
|
0.47
|
Acquisition Related
Transition Costs(c)
|
5
|
|
5
|
|
0.05
|
Legacy Product
Warranty and Liability Expense(g)
|
4
|
|
4
|
|
0.04
|
Normalized Tax Rate
Adjustment(f)
|
|
—
|
|
|
—
|
|
|
0.15
|
Ongoing Business
Measure
|
$
|
339
|
|
$
|
309
|
|
$
|
2.63
|
(5) Earnings Before Interest & Taxes is a non-GAAP measure
calculated by adding Interest and sundry income (expense)
[approximately $(30) 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, reported
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)
|
|
Restructuring
Expense(a)
|
|
Benefit
Plan
Curtailment
Gain(b)
|
|
Combined
Acquisition Related
Transition Costs and
Inventory Purchase
Price Allocation(c)
|
|
Pension
Settlement
Charges(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
|
|
$
|
33
|
|
$
|
(47)
|
|
$
|
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, 2016. Ongoing business segment operating margin is
calculated by dividing ongoing business segment operating profit
(loss) by segment net sales.
|
Three Months
Ended
|
|
March 31,
2016
|
|
Segment
Operating
Profit (Loss)
|
|
Restructuring
Expense(a)
|
|
Acquisition
Related
Transition Costs(c)
|
|
Legacy Product
Warranty and
Liability Expense(g)
|
|
Ongoing Business
Segment Operating
Profit (Loss)
|
North
America
|
$
|
250
|
|
$
|
—
|
|
$
|
—
|
|
$
|
3
|
|
$
|
253
|
Latin
America
|
42
|
|
—
|
|
—
|
|
—
|
|
42
|
EMEA
|
55
|
|
—
|
|
2
|
|
1
|
|
58
|
Asia
|
25
|
|
—
|
|
2
|
|
—
|
|
27
|
Other/Eliminations
|
|
(89)
|
|
|
47
|
|
|
1
|
|
|
—
|
|
(40)
|
Total Whirlpool
Corporation
|
$
|
283
|
|
$
|
47
|
|
$
|
5
|
|
$
|
4
|
|
$
|
339
|
Note: numbers may not reconcile due to rounding
Full Year 2015 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 twelve months ended
December 31, 2015. Ongoing business operating margin is
calculated by dividing ongoing business operating profit by net
sales. Ongoing business EBIT margin is calculated by dividing
ongoing business EBIT by net sales.
|
Twelve Months
Ended
|
|
December 31,
2015
|
|
Operating
Profit
|
|
Earnings Before
Interest & Taxes(5)
|
|
Earnings per
Diluted Share
|
Reported GAAP
Measure
|
$
|
1,285
|
|
$
|
1,196
|
|
$
|
9.83
|
Restructuring
Expense(a)
|
201
|
|
201
|
|
2.03
|
Acquisition Related
Transition Costs(c)
|
57
|
|
64
|
|
0.66
|
Benefit Plan
Curtailment Gain(b)
|
(62)
|
|
(62)
|
|
(0.63)
|
Gain/Expenses Related
to a Business Investment(h)
|
—
|
|
(46)
|
|
(0.44)
|
Legacy Product
Warranty and Liability Expense(g)
|
42
|
|
42
|
|
0.42
|
Pension Settlement
Charges(d)
|
15
|
|
15
|
|
0.16
|
Antitrust and Dispute
Resolutions(e)
|
|
21
|
|
|
35
|
|
0.35
|
Ongoing Business
Measure
|
$
|
1,559
|
|
$
|
1,445
|
|
$
|
12.38
|
(5) Earnings Before Interest & Taxes is a non-GAAP measure
calculated by adding Interest and sundry income (expense)
[approximately $(89) million] and
Operating Profit.
Full Year 2016 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 twelve months ending
December 31, 2016. Ongoing business operating margin is
calculated by dividing ongoing business operating profit by net
sales. Ongoing business EBIT margin is calculated by dividing
ongoing business EBIT by net sales.
|
Twelve Months
Ending
|
|
December 31,
2016
|
|
Operating
Profit
|
|
Earnings Before
Interest & Taxes(5)
|
|
Earnings per
Diluted Share
|
Reported GAAP
Measure
|
$ 1,525 -
1,625
|
|
$ 1,400 -
1,500
|
|
$ 11.25 -
12.00
|
Restructuring
Expense(a)
|
250
|
|
250
|
|
2.50
|
Acquisition Related
Transition Costs(c)
|
32
|
|
32
|
|
0.32
|
Legacy Product
Warranty and Liability Expense(g)
|
4
|
|
4
|
|
0.04
|
Ongoing Business
Measure
|
$ 1,800 -
1,900
|
|
$ 1,675 -
1,775
|
|
$ 14.00 -
14.75
|
(5) Earnings Before Interest & Taxes is a non-GAAP measure
calculated by adding Interest and sundry income (expense)
[approximately $(125) million] and
Operating Profit.
Note: Adjustments are required to calculate full-year 2016
ongoing operating margins for the North
America, Latin America,
EMEA and Asia regions. The
acquisition related transition cost adjustment is expected to have
a $29 million impact in the EMEA
region and a $2 million impact in the
Asia region. The legacy
product warranty and liability expense adjustment is expected to
have a $3 million impact in the
North America region and a
$1 million impact in the EMEA
region.
Footnotes:
a.
|
RESTRUCTURING
EXPENSE - During the first quarters of 2015 and 2016, we
recorded restructuring charges of $33 million and $47 million,
respectively. The earnings per diluted share impacts are calculated
based on income tax impacts of $8 million and $10 million,
respectively. During the full year 2015, we recorded restructuring
charges of $201 million. The earnings per diluted share impact is
calculated based on an income tax impact of $41 million. 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.
|
BENEFIT PLAN
CURTAILMENT GAIN - 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. During the full year 2015, we recorded a
benefit plan curtailment gain of $62 million. The earnings per
diluted share impact is calculated based on an income tax impact of
$13 million.
|
|
|
c.
|
COMBINED
ACQUISITION RELATED TRANSITION COSTS AND INVENTORY PURCHASE PRICE
ALLOCATION - During the first quarter of 2015 and 2016, we
recognized acquisition related transition costs of $15 million and
$5 million, respectively, associated with the acquisition of a
majority interest in Hefei Sanyo and the acquisition of Indesit.
The earnings per diluted share impacts are calculated based on an
income tax impact of $4 million and $1 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. During
the full year 2015, we recognized acquisition related transition
costs of $64 million, associated with these acquisitions. The
earnings per diluted share impact is calculated based on an income
tax impact of $13 million. 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.
|
|
|
d.
|
PENSION SETTLEMENT
CHARGES - 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. During the full year
2015, the company recognized expenses of $3 million related to a
Canadian pension settlement and $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.
|
ANTITRUST AND
DISPUTE RESOLUTIONS - During the first quarter of 2015, we
recognized expenses of approximately $10 million related to
antitrust resolutions. The earnings per diluted share impact is
calculated based on an income tax impact of $2 million. During the
full year 2015, we recognized expenses of $35 million related to
antitrust and dispute resolutions. The earnings per diluted share
impact is calculated based on an income tax impact of $7
million.
|
|
|
f.
|
NORMALIZED TAX
RATE ADJUSTMENT - During the first quarters of 2015 and 2016,
we made adjustments to ongoing business diluted EPS to reconcile
specific items reported to anticipated full-year effective tax
rates of approximately 24% and 22%, respectively.
|
|
|
g
|
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. During the full year 2015, we recognized expenses of
$39 million related to legacy product warranty and liability
actions on heritage Indesit product in Europe and a $3 million
charge associated with a separate product recall in North America.
The earnings per diluted share impact is calculated based on an
income tax impact of $9 million.
|
|
|
h.
|
GAIN/EXPENSES
RELATED TO A BUSINESS INVESTMENT - During the full year 2015,
we recognized a gain related to a business investment of $63
million and an expense of $17 million. The earnings per diluted
share impact is calculated based on an income tax impact of $13
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 months
ended March 31, 2016 and 2015 and projected 2016 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)
|
2016
|
2015
|
|
2016
Outlook
|
Cash Provided by
(Used in) Operating Activities
|
$(661)
|
$(569)
|
|
$1,400 -
$1,550
|
Capital expenditures,
proceeds from sale of assets/businesses and change in restricted
cash*
|
(78)
|
(82)
|
|
(700) -
(750)
|
Free Cash
Flow
|
$(739)
|
$(651)
|
|
$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