BENTON HARBOR, Mich.,
Jan. 26, 2017 /PRNewswire/ --
Whirlpool Corporation (NYSE: WHR) announced today fourth-quarter
GAAP net earnings of $180 million, or
$2.36 per diluted share, compared to
$180 million, or $2.28 per diluted share, reported for the same
prior-year period. Fourth-quarter ongoing business earnings per
diluted share(1) totaled $4.33 compared to $4.10 in the same prior-year period.
"We delivered our fifth consecutive year of record ongoing
earnings per share through the continued execution of our long-term
strategic priorities," said Jeff M.
Fettig, chairman and chief executive officer of Whirlpool
Corporation. "We also continued to create value through our
capital allocation strategy, funding our innovation programs with
strong levels of investment while returning a record $800 million to shareholders through dividends
and share repurchases."
Fourth-quarter net sales were $5.7
billion, compared to $5.6
billion in the same prior-year period. Excluding the impact
of currency, sales increased over 2 percent.
Fourth-quarter GAAP operating profit totaled $335 million, or 5.9 percent of sales, compared
to $380 million, or 6.9 percent of
sales, in the same prior-year period. Fourth-quarter ongoing
business operating profit(2) totaled $425 million, or 7.5 percent of sales, compared
to $468 million, or 8.4 percent of
sales, in the same prior-year period. On a GAAP and ongoing basis,
cost productivity, unit volume growth, benefits from cost and
capacity reduction initiatives and acquisition cost synergies
partially offset unfavorable impacts from product price/mix and
foreign currency; on a GAAP basis, results were negatively impacted
by acquisition-related transition costs, and prior-year results
were negatively impacted by the recognition of expenses related to
a legal settlement.
For the full year, net sales were $20.7
billion compared to $20.9
billion in 2015. Excluding the impact of currency, sales
increased by 2 percent. GAAP operating profit totaled $1.4 billion, compared to $1.3 billion in the prior year. Full-year ongoing
business operating profit(2) totaled
$1.6 billion, or 7.8 percent of
sales, compared to $1.6 billion, or
7.5 percent of sales, in the prior year. GAAP net earnings per
diluted share increased to $11.50,
compared to $9.83 in the prior year.
Ongoing business earnings per diluted share(1) increased
to $14.06, compared to $12.38 in the prior year.
For the twelve months ended December 31, 2016, the Company
reported cash provided by operating activities of $1.2 billion compared to $1.2 billion in the prior year. Whirlpool
Corporation reported free cash flow(3) of $630 million in 2016 compared to $620 million in the prior year.
FOURTH-QUARTER REGIONAL REVIEW
Whirlpool North
America
Whirlpool North America
reported fourth-quarter net sales of $3.1
billion, compared to $2.9
billion in the same prior-year period. Excluding the impact
of currency, sales increased over 8 percent.
The region reported fourth-quarter GAAP operating profit of
$348 million, or 11.1 percent of
sales, compared to $340 million, or
11.7 percent of sales, in the same prior-year period. Ongoing
business segment operating profit(4) totaled
$348 million, or 11.1 percent of
sales, compared to $361 million, or
12.4 percent of sales, in the same prior-year period. On a GAAP and
ongoing basis, unit volume growth and cost productivity were more
than offset by unfavorable product price/mix and foreign currency;
on a GAAP basis, prior-year results were negatively impacted by the
recognition of expenses related to a legal settlement.
The Company expects full-year 2017 industry unit shipments in
the U.S. to increase by 4 to 6 percent.
Whirlpool Europe,
Middle East and Africa
Whirlpool Europe, Middle East and Africa reported fourth-quarter net sales of
$1.4 billion, compared to
$1.5 billion in the same prior-year
period. Excluding the impact of currency, sales decreased 8
percent.
The region reported fourth-quarter GAAP operating profit of
$17 million, or 1.3 percent of sales,
compared to $88 million, or 5.7
percent of sales, in the same prior-year period. Ongoing business
segment operating profit(4) totaled $45 million, or 3.3 percent of sales, compared to
$88 million, or 5.7 percent of sales,
in the same prior-year period. Consistent with the Company's prior
statements, margins were negatively impacted by approximately
$40 million in the U.K. related to
currency and demand weakness associated with the Brexit decision
and $10 million for a production and
inventory reduction. On a GAAP and ongoing basis, acquisition cost
synergies were more than offset by unit volume declines, foreign
currency and product price/mix; on a GAAP basis, current period
results were negatively impacted by acquisition-related integration
costs.
The Company expects full-year 2017 industry unit shipments to
increase by 1 to 2 percent.
Whirlpool Latin
America
Whirlpool Latin America
reported fourth-quarter net sales of $860
million, compared to $845
million in the same prior-year period. Excluding the impact
of currency, sales decreased 7 percent.
The region reported fourth-quarter operating profit of
$70 million, or 8.1 percent of sales,
compared to $58 million, or 6.8
percent of sales, in the same prior-year period, driven by
favorable product price/mix and benefits from cost and capacity
reduction initiatives partially offset by unit volume declines.
The Company expects full-year 2017 industry unit shipments in
Brazil to be flat.
Whirlpool Asia
Whirlpool Asia reported
fourth-quarter net sales of $352
million compared to $312
million in the same prior-year period. Excluding the impact
of currency, sales increased 18 percent.
The region reported fourth-quarter GAAP operating profit of
$18 million, or 4.9 percent of sales,
compared to $5 million, or 1.8
percent of sales, in the same prior-year period. Ongoing business
segment operating profit(4) totaled $19 million, or 5.3 percent of sales, compared to
$11 million, or 3.6 percent of sales,
in the same prior-year period. On a GAAP and ongoing basis, unit
volume growth and cost productivity more than offset product
price/mix and increased investments in marketing, technology and
products; on a GAAP basis, prior-year results were negatively
impacted by acquisition-related integration costs.
The Company expects full-year 2017 industry unit shipments to be
flat to up 2 percent.
Regional Summary
"We have demonstrated our ability to effectively manage
volatility in a disciplined and decisive manner," said Marc Bitzer, president and chief operating
officer of Whirlpool Corporation. "We remain focused on delivering
profitable revenue growth and improving working capital through
operational execution and have high confidence that we will achieve
our goals in the coming year."
OUTLOOK
For the full-year 2017, Whirlpool Corporation expects GAAP
earnings per diluted share of $13.25 to
$14.25 and ongoing business earnings per diluted
share(1) of $15.25 to
$16.25.
For the full-year 2017, the Company expects to generate cash
from operating activities of $1.7 to $1.75
billion and free cash flow(3) of approximately
$1 billion. Included in this guidance
are primarily acquisition-related restructuring cash outlays of up
to $165 million, legacy product
warranty and liability costs of $70
million, pension contributions of $45
million and, with respect to free cash flow(3),
capital spending of $700 to $750
million.
"Our long-term value creation framework is unchanged, as we
build upon the strong foundation we have in place: our
industry-leading brand portfolio and robust product innovation
pipeline supported by our best cost global operating platform,"
said Fettig. "We are confident that our plans, along with
disciplined operational execution by our people and our balanced
capital allocation strategy, will continue to deliver record
financial results for our shareholders."
(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.
About Whirlpool Corporation
Whirlpool Corporation
(NYSE: WHR) is the number one major appliance manufacturer in the
world, with approximately $21 billion
in annual sales, 93,000 employees and 70 manufacturing and
technology research centers throughout the world in 2016. 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
STATEMENTS OF INCOME
FOR THE PERIODS
ENDED DECEMBER 31
(Millions of
dollars, except share data)
|
|
|
|
|
Three Months
Ended
|
|
|
Twelve Months
Ended
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
|
|
|
Net
sales
|
$
|
5,656
|
|
|
$
|
5,560
|
|
|
$
|
20,718
|
|
|
$
|
20,891
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
Cost of products
sold
|
4,701
|
|
|
4,558
|
|
|
17,036
|
|
|
17,201
|
|
|
Gross
margin
|
955
|
|
|
1,002
|
|
|
3,682
|
|
|
3,690
|
|
|
Selling, general and
administrative
|
546
|
|
|
547
|
|
|
2,084
|
|
|
2,130
|
|
|
Intangible
amortization
|
17
|
|
|
19
|
|
|
71
|
|
|
74
|
|
|
Restructuring
costs
|
57
|
|
|
56
|
|
|
173
|
|
|
201
|
|
|
Operating
profit
|
335
|
|
|
380
|
|
|
1,354
|
|
|
1,285
|
|
|
Other (income)
expense
|
|
|
|
|
|
|
|
|
Interest and sundry
(income) expense
|
(16)
|
|
|
57
|
|
|
79
|
|
|
89
|
|
|
Interest
expense
|
43
|
|
|
41
|
|
|
161
|
|
|
165
|
|
|
Earnings before
income taxes
|
308
|
|
|
282
|
|
|
1,114
|
|
|
1,031
|
|
|
Income tax
expense
|
122
|
|
|
93
|
|
|
186
|
|
|
209
|
|
|
Net
earnings
|
186
|
|
|
189
|
|
|
928
|
|
|
822
|
|
|
Less: Net earnings
available to noncontrolling interests
|
6
|
|
|
9
|
|
|
40
|
|
|
39
|
|
|
Net earnings
available to Whirlpool
|
$
|
180
|
|
|
$
|
180
|
|
|
$
|
888
|
|
|
$
|
783
|
|
|
Per share of
common stock
|
|
|
|
|
|
|
|
|
Basic net earnings
available to Whirlpool
|
$
|
2.40
|
|
|
$
|
2.31
|
|
|
$
|
11.67
|
|
|
$
|
9.95
|
|
|
Diluted net earnings
available to Whirlpool
|
$
|
2.36
|
|
|
$
|
2.28
|
|
|
$
|
11.50
|
|
|
$
|
9.83
|
|
|
Weighted-average
shares outstanding (in millions)
|
|
|
|
|
|
|
|
|
Basic
|
75.2
|
|
|
78.1
|
|
|
76.1
|
|
|
78.7
|
|
|
Diluted
|
76.3
|
|
|
78.9
|
|
|
77.2
|
|
|
79.7
|
|
|
WHIRLPOOL
CORPORATION
CONSOLIDATED
BALANCE SHEETS
(Millions of
dollars, except share data)
|
|
|
December
31,
2016
|
|
|
December
31,
2015
|
|
|
(Unaudited)
|
|
|
|
|
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
$
|
1,085
|
|
|
$
|
772
|
|
|
Accounts receivable,
net of allowance of $185 and $160, respectively
|
2,711
|
|
|
2,530
|
|
|
Inventories
|
2,623
|
|
|
2,619
|
|
|
Prepaid and other
current assets
|
920
|
|
|
953
|
|
|
Total current
assets
|
7,339
|
|
|
6,874
|
|
|
Property, net of
accumulated depreciation of $6,055 and $5,953,
respectively
|
3,810
|
|
|
3,774
|
|
|
Goodwill
|
2,956
|
|
|
3,006
|
|
|
Other intangibles,
net of accumulated amortization of $387 and $327,
respectively
|
2,552
|
|
|
2,678
|
|
|
Deferred income
taxes
|
2,154
|
|
|
2,301
|
|
|
Other noncurrent
assets
|
342
|
|
|
377
|
|
|
Total
assets
|
$
|
19,153
|
|
|
$
|
19,010
|
|
|
Liabilities and
stockholders' equity
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts
payable
|
$
|
4,416
|
|
|
$
|
4,403
|
|
|
Accrued
expenses
|
649
|
|
|
675
|
|
|
Accrued advertising
and promotions
|
742
|
|
|
706
|
|
|
Employee
compensation
|
390
|
|
|
452
|
|
|
Notes
payable
|
34
|
|
|
20
|
|
|
Current maturities of
long-term debt
|
560
|
|
|
508
|
|
|
Other current
liabilities
|
871
|
|
|
980
|
|
|
Total current
liabilities
|
7,662
|
|
|
7,744
|
|
|
Noncurrent
liabilities
|
|
|
|
|
Long-term
debt
|
3,876
|
|
|
3,470
|
|
|
Pension
benefits
|
1,074
|
|
|
1,025
|
|
|
Postretirement
benefits
|
334
|
|
|
390
|
|
|
Other noncurrent
liabilities
|
479
|
|
|
707
|
|
|
Total noncurrent
liabilities
|
5,763
|
|
|
5,592
|
|
|
Stockholders'
equity
|
|
|
|
|
Common stock, $1 par
value, 250 million shares authorized, 111 million shares
issued, and 74 million and 77 million shares outstanding,
respectively
|
111
|
|
|
111
|
|
|
Additional paid-in
capital
|
2,672
|
|
|
2,641
|
|
|
Retained
earnings
|
7,314
|
|
|
6,722
|
|
|
Accumulated other
comprehensive loss
|
(2,400)
|
|
|
(2,332)
|
|
|
Treasury stock, 37
million and 33 million shares, respectively
|
(2,924)
|
|
|
(2,399)
|
|
|
Total Whirlpool
stockholders' equity
|
4,773
|
|
|
4,743
|
|
|
Noncontrolling
interests
|
955
|
|
|
931
|
|
|
Total stockholders'
equity
|
5,728
|
|
|
5,674
|
|
|
Total liabilities and
stockholders' equity
|
$
|
19,153
|
|
|
$
|
19,010
|
|
|
WHIRLPOOL
CORPORATION
CONSOLIDATED
STATEMENTS OF CASH FLOWS
FOR THE PERIODS
ENDED DECEMBER 31
(Millions of
dollars)
|
|
|
Twelve Months
Ended
|
|
|
2016
|
|
|
2015
|
|
|
(Unaudited)
|
|
|
|
Operating
activities
|
|
|
|
|
Net
earnings
|
$
|
928
|
|
|
$
|
822
|
|
|
Adjustments to
reconcile net earnings to cash provided by (used in) operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
655
|
|
|
668
|
|
|
Curtailment
gain
|
—
|
|
|
(63)
|
|
|
Changes in assets and
liabilities:
|
|
|
|
|
Accounts
receivable
|
(291)
|
|
|
(89)
|
|
|
Inventories
|
(18)
|
|
|
(141)
|
|
|
Accounts
payable
|
37
|
|
|
14
|
|
|
Accrued advertising
and promotions
|
46
|
|
|
74
|
|
|
Accrued expenses and
current liabilities
|
46
|
|
|
(43)
|
|
|
Taxes deferred and
payable, net
|
(116)
|
|
|
(42)
|
|
|
Accrued pension and
postretirement benefits
|
(43)
|
|
|
(129)
|
|
|
Employee
compensation
|
(38)
|
|
|
8
|
|
|
Other
|
(3)
|
|
|
146
|
|
|
Cash provided by
operating activities
|
1,203
|
|
|
1,225
|
|
|
Investing
activities
|
|
|
|
|
Capital
expenditures
|
(660)
|
|
|
(689)
|
|
|
Proceeds from sale of
assets and business
|
63
|
|
|
37
|
|
|
Change in restricted
cash
|
24
|
|
|
47
|
|
|
Investment in related
businesses
|
(12)
|
|
|
(70)
|
|
|
Other
|
(3)
|
|
|
(6)
|
|
|
Cash used in
investing activities
|
(588)
|
|
|
(681)
|
|
|
Financing
activities
|
|
|
|
|
Proceeds from
borrowings of long-term debt
|
1,012
|
|
|
531
|
|
|
Repayments of
long-term debt
|
(522)
|
|
|
(283)
|
|
|
Net proceeds from
short-term borrowings
|
55
|
|
|
(465)
|
|
|
Dividends
paid
|
(294)
|
|
|
(269)
|
|
|
Repurchase of common
stock
|
(525)
|
|
|
(250)
|
|
|
Purchase of
noncontrolling interest shares
|
(25)
|
|
|
—
|
|
|
Common stock
issued
|
26
|
|
|
38
|
|
|
Other
|
(5)
|
|
|
(9)
|
|
|
Cash used in
financing activities
|
(278)
|
|
|
(707)
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
(24)
|
|
|
(91)
|
|
|
Increase (decrease)
in cash and cash equivalents
|
313
|
|
|
(254)
|
|
|
Cash and cash
equivalents at beginning of period
|
772
|
|
|
1,026
|
|
|
Cash and cash
equivalents at end of period
|
$
|
1,085
|
|
|
$
|
772
|
|
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), EBIT margin, ongoing
business EBIT, ongoing business EBIT margin, ongoing business
earnings, ongoing business earnings per diluted share, ongoing
business segment operating profit (loss), ongoing business segment
operating margin, sales excluding currency 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 is
calculated by translating the current period net sales, in
functional currency, to U.S. dollars using the prior-year period's
exchange rate compared to the prior-year period net sales.
Management believes that sales excluding foreign currency provides
stockholders with a clearer basis to assess our results over time,
excluding the impact of exchange rate fluctuations. 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, and reflect an additional way of viewing
aspects of our operations that, when viewed with our GAAP financial
measures, provide a more complete understanding of our business.
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 available to Whirlpool per diluted
share, net earnings, net earnings available to Whirlpool, net
sales, reported operating profit (loss) by segment, and cash
provided by (used in) operating activities, the most directly
comparable GAAP financial measures. GAAP net earnings available to
Whirlpool per diluted share and ongoing business earnings per
diluted share are presented net of tax, while individual
adjustments in each reconciliation are presented on a pre-tax
basis; the income tax impact line item aggregates the tax impact
for these adjustments. The tax impact of individual line item
adjustments may not foot precisely to the aggregate income tax
impact amount, as each line item adjustment may include non-taxable
components. Prior-period comparisons have been recast to reflect
the tax impact of adjustments as a single adjustment. Historical
quarterly earnings per share amounts are presented based on a
normalized tax rate adjustment to reconcile quarterly tax rates to
full-year tax rate expectations. 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.
Fourth-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, net earnings available to
Whirlpool and net earnings per diluted share available to
Whirlpool, for the three months ended 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. The earnings per diluted share GAAP measure and ongoing
business measure are presented net of tax, while each adjustment is
presented on a pre-tax basis. The aggregate income tax impact of
the taxable components of each adjustment is presented in the
income tax impact line item at our fourth-quarter adjusted
effective tax rate of 7.5%.
|
Three Months
Ended
|
|
December 31,
2016
|
|
Operating
Profit
|
|
Earnings
Before Interest
& Taxes(5)
|
|
Earnings per
Diluted
Share
|
|
Reported GAAP
Measure
|
$
|
335
|
|
|
$
|
351
|
|
|
$
|
2.36
|
|
|
Restructuring
Expense(d)
|
57
|
|
|
57
|
|
|
0.75
|
|
|
Acquisition Related
Transition Costs
|
33
|
|
|
34
|
|
|
0.45
|
|
|
Legacy Product
Warranty and Liability Expense(c)
|
—
|
|
|
(29)
|
|
|
(0.37)
|
|
|
Income Tax
Impact
|
—
|
|
|
—
|
|
|
(0.07)
|
|
|
Normalized Tax Rate
Adjustment(b)
|
—
|
|
|
—
|
|
|
1.21
|
|
|
Ongoing Business
Measure
|
$
|
425
|
|
|
$
|
413
|
|
|
$
|
4.33
|
|
Earnings Before Interest & Taxes Reconciliation:
|
Net earnings
available to Whirlpool
|
$
|
180
|
|
|
Net earnings
available to noncontrolling interests
|
6
|
|
|
Income tax expense
(benefit)
|
122
|
|
|
Interest
expense
|
43
|
|
|
Earnings Before
Interest & Taxes(5)
|
$
|
351
|
|
Fourth-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, net earnings available to
Whirlpool and net earnings per diluted share available to
Whirlpool, for the three 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. The earnings per diluted share GAAP measure and ongoing
business measure are presented net of tax, while each adjustment is
presented on a pre-tax basis. The aggregate income tax impact of
the taxable components of each adjustment is presented in the
income tax impact line item at our fourth-quarter adjusted
effective tax rate of 14.1%.
|
Three Months
Ended
|
|
|
December 31,
2015
|
|
|
Operating
Profit
|
|
Earnings
Before Interest
& Taxes(5)
|
|
|
Earnings per
Diluted
Share
|
|
|
Reported GAAP
Measure
|
$
|
380
|
|
|
$
|
323
|
|
|
$
|
2.28
|
|
|
Restructuring
Expense(d)
|
56
|
|
|
56
|
|
|
0.71
|
|
|
Acquisition Related
Transition Costs
|
11
|
|
|
12
|
|
|
0.15
|
|
|
Antitrust and Dispute
Resolutions
|
21
|
|
|
22
|
|
|
0.28
|
|
|
Gain/Expenses Related
to a Business Investment
|
—
|
|
|
18
|
|
|
0.23
|
|
|
Income Tax
Impact
|
—
|
|
|
—
|
|
|
(0.19)
|
|
|
Normalized Tax Rate
Adjustment(b)
|
—
|
|
|
—
|
|
|
0.64
|
|
|
Ongoing Business
Measure
|
$
|
468
|
|
|
$
|
431
|
|
|
$
|
4.10
|
|
Earnings Before Interest & Taxes Reconciliation:
|
Net earnings
available to Whirlpool
|
$
|
180
|
|
|
Net earnings
available to noncontrolling interests
|
9
|
|
|
Income tax expense
(benefit)
|
93
|
|
|
Interest
expense
|
41
|
|
|
Earnings Before
Interest & Taxes(5)
|
$
|
323
|
|
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
December 31, 2016. Ongoing business segment operating margin
is calculated by dividing ongoing business segment operating profit
(loss) by segment net sales.
|
Three Months
Ended
|
|
|
December 31,
2016
|
|
|
Segment
Operating
Profit (Loss)
|
|
Restructuring
Expense(d)
|
|
Acquisition
Related
Transition
Costs
|
|
Ongoing Business
Segment
Operating Profit
(Loss)
|
|
North
America
|
$
|
348
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
348
|
|
|
EMEA
|
17
|
|
|
—
|
|
|
28
|
|
|
45
|
|
|
Latin
America
|
70
|
|
|
—
|
|
|
—
|
|
|
70
|
|
|
Asia
|
18
|
|
|
—
|
|
|
1
|
|
|
19
|
|
|
Other/Eliminations
|
(118)
|
|
|
57
|
|
|
4
|
|
|
(57)
|
|
|
Total Whirlpool
Corporation
|
$
|
335
|
|
|
$
|
57
|
|
|
$
|
33
|
|
|
$
|
425
|
|
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
December 31, 2015. Ongoing business segment operating margin
is calculated by dividing ongoing business segment operating profit
(loss) by segment net sales.
|
Three Months
Ended
|
|
|
December 31,
2015
|
|
|
Segment
Operating
Profit (Loss)
|
|
Restructuring
Expense(d)
|
|
Acquisition
Related
Transition
Costs
|
|
Antitrust
and
Dispute
Resolutions
|
|
Ongoing Business
Segment
Operating Profit
(Loss)
|
|
North
America
|
$
|
340
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
21
|
|
|
$
|
361
|
|
|
EMEA
|
88
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
88
|
|
|
Latin
America
|
58
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
58
|
|
|
Asia
|
5
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
11
|
|
|
Other/Eliminations
|
(111)
|
|
|
56
|
|
|
5
|
|
|
—
|
|
|
(50)
|
|
|
Total Whirlpool
Corporation
|
$
|
380
|
|
|
$
|
56
|
|
|
$
|
11
|
|
|
$
|
21
|
|
|
$
|
468
|
|
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, net earnings available to
Whirlpool and net earnings per diluted share available to
Whirlpool, for the twelve months ended 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. The earnings per diluted share GAAP measure and ongoing
business measure are presented net of tax, while each adjustment is
presented on a pre-tax basis. The aggregate income tax impact of
the taxable components of each adjustment is presented in the
income tax impact line item at our full-year tax rate of 16.6%.
|
Twelve Months
Ended
|
|
|
December 31,
2016
|
|
|
Operating
Profit
|
|
|
Earnings
Before Interest
& Taxes(5)
|
|
|
Earnings
per Diluted
Share
|
|
|
Reported GAAP
Measure
|
$
|
1,354
|
|
|
$
|
1,275
|
|
|
$
|
11.50
|
|
|
Restructuring
Expense(d)
|
173
|
|
|
173
|
|
|
2.24
|
|
|
Acquisition Related
Transition Costs
|
82
|
|
|
86
|
|
|
1.11
|
|
|
Legacy Product
Warranty and Liability Expense(c)
|
3
|
|
|
(23)
|
|
|
(0.30)
|
|
|
Income Tax
Impact
|
—
|
|
|
—
|
|
|
(0.49)
|
|
|
Ongoing Business
Measure
|
$
|
1,612
|
|
|
$
|
1,511
|
|
|
$
|
14.06
|
|
Earnings Before Interest & Taxes Reconciliation:
|
Net earnings
available to Whirlpool
|
$
|
888
|
|
|
Net earnings
available to noncontrolling interests
|
40
|
|
|
Income tax expense
(benefit)
|
186
|
|
|
Interest
expense
|
161
|
|
|
Earnings Before
Interest & Taxes(5)
|
$
|
1,275
|
|
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, net earnings available to
Whirlpool 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. The earnings per diluted share GAAP measure and ongoing
business measure are presented net of tax, while each adjustment is
presented on a pre-tax basis. The aggregate income tax impact of
the taxable components of each adjustment is presented in the
income tax impact line item at our full-year tax rate of 20.3%.
|
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(d)
|
201
|
|
|
201
|
|
|
2.52
|
|
|
Acquisition Related
Transition Costs
|
57
|
|
|
64
|
|
|
0.80
|
|
|
Benefit Plan
Curtailment Gain
|
(62)
|
|
|
(62)
|
|
|
(0.78)
|
|
|
Gain/Expenses Related
to a Business Investment
|
—
|
|
|
(46)
|
|
|
(0.58)
|
|
|
Legacy Product
Warranty and Liability Expense(c)
|
42
|
|
|
42
|
|
|
0.53
|
|
|
Pension Settlement
Charges(a)
|
15
|
|
|
15
|
|
|
0.19
|
|
|
Antitrust and Dispute
Resolutions
|
21
|
|
|
35
|
|
|
0.44
|
|
|
Income Tax
Impact
|
—
|
|
|
—
|
|
|
(0.57)
|
|
|
Ongoing Business
Measure
|
$
|
1,559
|
|
|
$
|
1,445
|
|
|
$
|
12.38
|
|
Earnings Before Interest & Taxes Reconciliation:
|
Net earnings
available to Whirlpool
|
$
|
783
|
|
|
Net earnings
available to noncontrolling interests
|
39
|
|
|
Income tax expense
(benefit)
|
209
|
|
|
Interest
expense
|
165
|
|
|
Earnings Before
Interest & Taxes(5)
|
$
|
1,196
|
|
Full-Year 2017 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, net earnings available to
Whirlpool and net earnings per diluted share available to
Whirlpool, for the twelve months ending December 31, 2017.
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. The earnings per diluted share GAAP measure and ongoing
business measure are presented net of tax, while each adjustment is
presented on a pre-tax basis. The aggregate income tax impact of
the taxable components of each adjustment is presented in the
income tax impact line item at our anticipated full-year tax rate
of 22%.
|
Twelve Months
Ending
|
|
December 31,
2017
|
|
Operating
Profit
|
|
Earnings
Before Interest
& Taxes(5)
|
|
Earnings
per Diluted
Share
|
|
Reported GAAP
Measure
|
$ 1,625 -
1,725
|
|
$ 1,510 -
1,610
|
|
$ 13.25 -
14.25
|
|
Restructuring
Expense(d)
|
200
|
|
200
|
|
2.62
|
|
Income Tax
Impact
|
—
|
|
—
|
|
(0.58)
|
|
Ongoing Business
Measure
|
$ 1,825 -
1,925
|
|
$ 1,710 -
1,810
|
|
$ 15.25 -
16.25
|
(5) Earnings Before Interest & Taxes (EBIT) is a non-GAAP
measure. Whirlpool does not provide a forward-looking
quantitative reconciliation of EBIT to the most directly comparable
GAAP financial measure, net earnings available to Whirlpool,
because the net earnings available to noncontrolling interests item
of such reconciliation -- which has historically represented a
relatively insignificant amount of Whirlpool's overall net earnings
-- implicates Whirlpool's projections regarding the earnings
of Whirlpool's non wholly-owned subsidiaries and joint ventures
that cannot be quantified precisely or without unreasonable
efforts.
Note: Numbers may not reconcile due to rounding.
|
Footnotes:
|
|
a.
|
PENSION SETTLEMENT
CHARGES - During the full-year 2015, we recognized expenses of
$3 million and $12 million related to Canadian and EMEA pension
settlements, respectively.
|
|
|
|
b.
|
NORMALIZED TAX
RATE ADJUSTMENT - During the fourth quarters of 2016 and 2015,
we calculated ongoing business diluted EPS using adjusted tax rates
of 7.5% and 14.1%, respectively, to reconcile specific items to our
full-year effective tax rates of 16.6% and 20.3%,
respectively.
|
|
|
|
c.
|
LEGACY PRODUCT
WARRANTY AND LIABILITY EXPENSE - 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. During the full-year 2016, we sought
indemnity under the terms of the Indesit acquisition agreements and
recognized amounts recovered from the seller in interest and sundry
(income) expense.
|
|
|
|
d.
|
RESTRUCTURING
EXPENSE - During the fourth quarter of 2014, we completed the
acquisition of Indesit S.p.A., which, due to its size, materially
changed our European footprint. These costs are primarily related
to Indesit restructuring and creating a more streamlined and
efficient European operation, and also relate to certain other
unique restructuring events.
|
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 twelve months
ended December 31, 2016 and 2015 and projected 2017 full-year
free cash flow with cash provided by (used in) operating
activities, the most directly comparable GAAP financial
measure.
|
|
|
|
|
|
|
|
Twelve Months
Ended December 31,
|
|
|
|
|
|
(millions of
dollars)
|
2016
|
2015
|
|
2017
Outlook
|
|
Cash provided by
(used in) operating activities
|
$1,203
|
$1,225
|
|
$1,700 -
$1,750
|
|
Capital expenditures,
proceeds from sale of assets/businesses and change in restricted
cash*
|
(573)
|
(605)
|
|
(700) -
(750)
|
|
Free Cash
Flow
|
$630
|
$620
|
|
~$1,000
|
|
|
|
|
|
|
Cash used in
investing activities**
|
$(588)
|
$(681)
|
|
|
|
Cash used in
financing activities**
|
$(278)
|
$(707)
|
|
|
*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.
**Financial guidance on a GAAP basis for cash provided by
(used in) financing activities and cash provided by (used in)
investing activities has not been provided because in
order to prepare any such estimate or projection, the company would
need to rely on market factors and certain other conditions and
assumptions that are outside of its control.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/whirlpool-corporation-reports-fourth-quarter-and-full-year-2016-results-provides-2017-guidance-300396955.html
SOURCE Whirlpool Corporation