BENTON HARBOR, Mich.,
Feb. 4, 2015 /PRNewswire/
-- Whirlpool Corporation (NYSE: WHR) announced today
fourth-quarter GAAP net earnings of $81
million, or $1.02 per diluted
share, compared to $181 million, or
$2.26 per diluted share, reported for
the same prior-year period. GAAP results reflect $1.71 per diluted share in costs associated with
the two recent acquisitions. Ongoing business earnings per diluted
share(1) increased to a record $3.52, compared to $2.97 in the same prior-year period, mainly
driven by revenue growth, ongoing cost productivity, the benefit of
cost and capacity-reduction initiatives and the impact of the
acquisitions.
Net sales in the quarter were a record $6.0 billion compared to $5.1 billion during the same prior-year period,
an increase of 18 percent. Excluding the impact of both foreign
currency and Brazilian (BEFIEX) tax credits, sales increased
approximately 22 percent. During the fourth-quarter, the
acquisitions contributed approximately $1
billion of net sales.
"We delivered another record year of earnings while building an
exceptional platform for profitable growth and margin expansion for
2015 and beyond," said Jeff M.
Fettig, chairman and chief executive officer of Whirlpool
Corporation. "Our integration activities remain on track to drive
synergies and we will continue investing in our leading brands and
the next generation of consumer relevant products."
Fourth-quarter GAAP operating profit totaled $281 million, which includes over $135 million of costs related to the
acquisitions, compared to $354
million in the same prior-year period. Record fourth quarter
ongoing business operating profit(2) totaled
$456 million, or 7.6 percent of
sales, compared to $386 million, or
7.7 percent of sales, in the same prior-year period. The benefits
of the acquisitions, higher sales, ongoing cost productivity and
the benefit of cost and capacity-reduction initiatives were
partially offset by higher material costs, unfavorable currency and
the impact of product transitions.
For the full year, GAAP net sales for 2014 were $19.9 billion compared to $18.8 billion in 2013. Excluding the impact of
both foreign currency and BEFIEX tax credits, sales increased
over 8 percent. GAAP operating profit for the year totaled
approximately $1.2 billion, compared
to $1.2 billion in 2013. Full-year
ongoing business operating profit(2) totaled
$1.5 billion, or 7.4 percent of
sales, compared to $1.4 billion, or
7.3 percent of sales, in 2013. The benefits of the acquisitions,
higher sales, ongoing cost productivity and cost and
capacity-reduction initiatives more than offset higher material
costs and foreign currency. GAAP net earnings for the year declined
to $8.17 per diluted share compared
to $10.24 per diluted share for 2013,
primarily due to costs related to the acquisitions. Ongoing
business diluted earnings per share(1) for the year
increased to a full-year record $11.39 per share compared to $10.02 per share for 2013.
During the twelve months ended December
31, 2014, the company reported cash provided by operating
activities of $1.5 billion compared
to cash provided by operating activities of $1.3 billion in the prior year. Whirlpool
Corporation reported free cash flow(3) of $854 million in 2014 compared to free cash
flow(3) of $690 million in
the prior year.
OUTLOOK
Whirlpool Corporation reaffirms its expectation for full-year
2015 GAAP net earnings per diluted share available to Whirlpool of
$10.75 to $11.75. The company
continues to expect to report full-year ongoing business earnings
per diluted share of $14.00 to
$15.00.
|
2015 EPS
Outlook
|
GAAP Diluted
EPS(i)
|
$10.75–$11.75
|
Restructuring
Expense
|
~2.85
|
Acquisition Related
Transition Cost
|
~0.24
|
Pension Settlement
Charge
|
~0.11
|
Acquisition Purchase
Price Accounting Adjustment - Inventory
|
~0.01
|
Ongoing Business
Diluted EPS
|
$14.00–$15.00
|
(i) Diluted EPS
available to Whirlpool.
|
|
|
|
For the full-year 2015, the company continues to expect to
generate free cash flow(3) of $700 million to $800 million. Included in this
guidance are restructuring cash outlays of up to $250 million, capital spending of $800 million to $850 million and U.S. pension
contributions of approximately $80
million.
"As we outlined at our Investor Day in December, we are
committed to executing our growth strategy and have created
multiple opportunities to achieve our long-term goals," said
Fettig. "Our larger global operating platform, competitive
cost structure, preferred brands and broad product offerings will
benefit consumers around the world and create significant value for
our shareholders."
FOURTH-QUARTER REGIONAL REVIEW
Whirlpool North
America
Whirlpool North America
reported fourth-quarter net sales of $2.8
billion compared to $2.7
billion in the same prior-year period, an increase of over 4
percent. Excluding the impact of currency, sales increased over 5
percent.
The region reported a fourth-quarter operating profit of
$255 million, or 9 percent of sales,
compared to $301 million, or 11
percent of sales, in the same prior-year period. As expected,
ongoing cost productivity and higher unit volumes were more than
offset by the impact of product transitions, higher material costs
and unfavorable currency.
The company expects full-year 2015 industry unit shipments to
increase by approximately 4 to 6 percent.
Whirlpool Europe,
Middle East and Africa
Whirlpool Europe, Middle East and Africa reported fourth-quarter net sales of
$1.7 billion compared to $0.8 billion in the same prior-year period. Over
$800 million of this revenue growth
was provided by the acquisition of Indesit Company S.p.A.
The region reported fourth-quarter operating profit of
$41 million, compared to $10 million in the same prior-year period.
Ongoing business segment operating
profit(4) totaled $101
million, or 6.1 percent of sales, compared to $10 million, or 1.2 percent of sales, in the same
prior year period. The benefits of the acquisition, higher unit
volumes, ongoing cost productivity and the benefit of cost and
capacity-reduction initiatives more than offset unfavorable
currency and unfavorable product price/mix.
The company expects full-year 2015 industry unit shipments to be
flat to up 2 percent.
Whirlpool Latin
America
Whirlpool Latin America
reported fourth-quarter net sales of $1.3
billion, compared to $1.4
billion in the same prior-year period. Excluding the impact
of currency and BEFIEX tax credits, sales increased over 1
percent.
The region reported fourth-quarter GAAP operating profit of
$147 million, compared to
$159 million in the same prior-year
period. During the fourth quarter of 2013, the company monetized
$40 million of BEFIEX tax credits.
Ongoing business segment operating
profit(4) totaled $149
million, or 11.7 percent of sales, compared to $130 million, or 9.7 percent of sales, in the
same prior year period. Improved product price/mix and ongoing cost
productivity more than offset lower unit volumes, higher material
costs and unfavorable currency.
The company now expects full-year 2015 industry unit shipments
to be flat to down 3 percent.
Whirlpool Asia
Whirlpool Asia reported
fourth-quarter net sales of $282
million compared to $177
million in the same prior-year period. Over $160 million of this revenue growth was provided
by the acquisition in China.
The region reported a fourth-quarter GAAP operating loss of
$(22) million, compared to an
operating profit of $10 million in
the same prior-year period. Ongoing business segment operating
profit(4) totaled $17
million, or 5.6 percent of sales, compared to $10 million, or 5.4 percent of sales, in the same
prior year period. The benefits of the acquisition, positive
price/mix, lower material costs and the benefits of cost and
capacity reductions were partially offset by increased investment
in brands and new products and unfavorable currency.
The company now 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 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.
FOURTH-QUARTER 2014 PRODUCT LEADERSHIP, INNOVATION AND
AWARDS
Whirlpool Corporation is at the forefront of the home appliance
industry - with deep consumer insights and the strongest 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.
Awards and Recognition
- Whirlpool Corporation was recognized for the 3rd consecutive
time in the top tier of Aon Hewitt's
Top Companies for Leaders. Whirlpool
placed in the top 10 of North American companies and the top 15 of
global companies.
- North America's new
Whirlpool® HybridCare™ Heat Pump Dryer
earned a CES Best of Innovation Award in the SmartHome category, as
well as being an Innovations Award Honoree in the Eco-Design and
Sustainable Technologies category.
- Latin America's
Brastemp brand was recognized as the
Top of Mind brand by the Folha de S. Paulo
newspaper and Datafolha Institute for the 6th time in the washing
machine category and the 8th time in oven range category. The
Consul brand was recognized for the 24th
time in the refrigerator category.
- Whirlpool Latin America was
recognized for the 4th time as one of the 20 Model Companies in
Sustainability by Exame magazine and the Getulio Vargas
Foundation through the Center for Sustainability Studies.
- Whirlpool Latin America was
recognized by LinkedIn as one of the top 10 most desirable
employers in the Latin America
network.
- Whirlpool China received the
Kapok Design Award, the only award in China recognized by the top three global
design organizations: ICSID, ICOGRADA and IFI.
Product Innovation
- Whirlpool India's new
Superb Atom semi-automatic washer delivers
local consumer-driven laundry innovation such as a manual smart
scrub station and an auto-restart feature to cope with frequent
power outages - all at an entry-level price point.
- The Jenn-Air® obsidian interior
refrigerator introduces a striking black interior and LED lighting
that minimizes shadows and reflects against the dark finish to
dramatically display ingredients, along with innovative
Twin
Fresh™ climate control to create two
distinct, independent climates for enhanced food preservation.
- The new Nespresso® by KitchenAid®
coffee machine combines the iconic and premium metal design from
KitchenAid brand with an innovative 19 bar
pressure system, guaranteeing Nespresso
coffee quality in single-serve capsules.
- The KitchenAid® Multi-Cooker delivers
traditional slow-cooker culinary results with an innovative
Even-Heat™ technology, which constantly
monitors the temperature of the cooking pot from 110° to 450° F for
precise temperature control.
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 material and oil-related prices. Many risks,
contingencies and uncertainties could cause actual results to
differ materially from Whirlpool's forward-looking statements.
Among these factors are: (1) intense competition in the home
appliance industry reflecting the impact of both new and
established global competitors, including Asian and European
manufacturers; (2) Whirlpool's ability to continue its relationship
with significant trade customers and the ability of these trade
customers to maintain or increase market share; (3) acquisition and
investment-related risk, including risks associated with our
acquisitions of Hefei Sanyo and
Indesit; (4) changes in economic conditions which affect demand for
our products, including the strength of the building industry and
the level of interest rates; (5) product liability and product
recall costs; (6) inventory and other asset risk; (7) risks related
to our international operations, including changes in foreign
regulations, regulatory compliance and disruptions arising from
natural disasters or terrorist attacks; (8) the uncertain global
economy; (9) the ability of Whirlpool to achieve its business
plans, productivity improvements, cost control, price increases,
leveraging of its global operating platform, and acceleration of
the rate of innovation; (10) Whirlpool's ability to maintain its
reputation and brand image; (11) fluctuations in the cost of key
materials (including steel, plastic, resins, copper and aluminum)
and components and the ability of Whirlpool to offset cost
increases; (12) litigation, tax, and legal compliance risk and
costs, especially costs which may be materially different from the
amount we expect to incur or have accrued for; (13) the effects and
costs of governmental investigations or related actions by third
parties; (14) Whirlpool's ability to obtain and protect
intellectual property rights; (15) the ability of suppliers of
critical parts, components and manufacturing equipment to deliver
sufficient quantities to Whirlpool in a timely and cost-effective
manner; (16) health care cost trends, regulatory changes and
variations between results and estimates that could increase future
funding obligations for pension and postretirement benefit plans;
(17) information technology system failures and data security
breaches; (18) the impact of labor relations; (19) our ability to
attract, develop and retain executives and other qualified
employees; (20) changes in the legal and regulatory environment
including environmental and health and safety regulations; and (21)
the ability of Whirlpool to manage foreign currency
fluctuations.
Additional information concerning these and other factors can be
found in Whirlpool's filings with the Securities and Exchange
Commission, including the most recent annual report on Form 10-K,
quarterly reports on Form 10-Q, and current reports on Form
8-K.
WHIRLPOOL
CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE PERIODS ENDED DECEMBER 31
(Millions of dollars, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Twelve Months
Ended
|
|
|
2014
(Unaudited)
|
|
|
2013
(Unaudited)
|
|
|
2014
(Unaudited)
|
|
|
2013
|
Net
sales
|
$
|
6,003
|
|
$
|
5,090
|
|
$
|
19,872
|
|
$
|
18,769
|
Expenses
|
|
|
|
|
|
|
|
Cost of products
sold
|
4,977
|
|
4,181
|
|
16,477
|
|
15,471
|
Gross
margin
|
1,026
|
|
909
|
|
3,395
|
|
3,298
|
Selling, general and
administrative
|
694
|
|
493
|
|
2,038
|
|
1,828
|
Intangible
amortization
|
16
|
|
6
|
|
33
|
|
25
|
Restructuring
costs
|
35
|
|
56
|
|
136
|
|
196
|
Operating
profit
|
281
|
|
354
|
|
1,188
|
|
1,249
|
Other income
(expense)
|
|
|
|
|
|
|
|
Interest and sundry
income (expense)
|
(64)
|
|
(82)
|
|
(142)
|
|
(155)
|
Interest
expense
|
(46)
|
|
(44)
|
|
(165)
|
|
(177)
|
Earnings before
income taxes
|
171
|
|
228
|
|
881
|
|
917
|
Income tax
expense
|
63
|
|
41
|
|
189
|
|
68
|
Net
earnings
|
108
|
|
187
|
|
692
|
|
849
|
Less: Net earnings
available to noncontrolling interests
|
27
|
|
6
|
|
42
|
|
22
|
Net earnings
available to Whirlpool
|
$
|
81
|
|
$
|
181
|
|
$
|
650
|
|
$
|
827
|
Per share of
common stock
|
|
|
|
|
|
|
|
Basic net earnings
available to Whirlpool
|
$
|
1.04
|
|
$
|
2.31
|
|
$
|
8.30
|
|
$
|
10.42
|
Diluted net earnings
available to Whirlpool
|
$
|
1.02
|
|
$
|
2.26
|
|
$
|
8.17
|
|
$
|
10.24
|
Weighted-average
shares outstanding (in millions)
|
|
|
|
|
|
|
|
Basic
|
78.4
|
|
78.5
|
|
78.3
|
|
79.3
|
Diluted
|
79.8
|
|
79.9
|
|
79.6
|
|
80.8
|
WHIRLPOOL
CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(Millions of dollars, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2014
(Unaudited)
|
|
December 31,
2013
|
Assets
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and
equivalents
|
$
|
1,026
|
|
$
|
1,380
|
Accounts receivable,
net of allowance of $154 and $73, respectively
|
2,768
|
|
2,005
|
Inventories
|
2,740
|
|
2,408
|
Deferred income
taxes
|
417
|
|
549
|
Prepaid and other
current assets
|
1,147
|
|
680
|
Total current
assets
|
8,098
|
|
7,022
|
Property, net of
accumulated depreciation of $5,959 and $6,278,
respectively
|
3,981
|
|
3,041
|
Goodwill
|
2,807
|
|
1,724
|
Other intangibles,
net of accumulated amortization of $267 and $237,
respectively
|
2,803
|
|
1,702
|
Deferred income
taxes
|
1,900
|
|
1,764
|
Other noncurrent
assets
|
413
|
|
291
|
Total
assets
|
$
|
20,002
|
|
$
|
15,544
|
Liabilities and
stockholders' equity
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$
|
4,730
|
|
$
|
3,865
|
Accrued
expenses
|
852
|
|
710
|
Accrued advertising
and promotions
|
673
|
|
441
|
Employee
compensation
|
499
|
|
456
|
Notes
payable
|
569
|
|
10
|
Current maturities of
long-term debt
|
234
|
|
607
|
Other current
liabilities
|
846
|
|
705
|
Total current
liabilities
|
8,403
|
|
6,794
|
Noncurrent
liabilities
|
|
|
|
Long-term
debt
|
3,544
|
|
1,846
|
Pension
benefits
|
1,123
|
|
930
|
Postretirement
benefits
|
446
|
|
458
|
Other noncurrent
liabilities
|
690
|
|
482
|
Total noncurrent
liabilities
|
5,803
|
|
3,716
|
Stockholders'
equity
|
|
|
|
Common stock, $1 par
value, 250 million shares authorized, 110 million and 109
million shares issued, and 78 million and 77 million shares
outstanding, respectively
|
110
|
|
109
|
Additional paid-in
capital
|
2,555
|
|
2,453
|
Retained
earnings
|
6,209
|
|
5,784
|
Accumulated other
comprehensive loss
|
(1,840)
|
|
(1,298)
|
Treasury stock, 32
million shares
|
(2,149)
|
|
(2,124)
|
Total Whirlpool
stockholders' equity
|
4,885
|
|
4,924
|
Noncontrolling
interests
|
911
|
|
110
|
Total stockholders'
equity
|
5,796
|
|
5,034
|
Total liabilities and
stockholders' equity
|
$
|
20,002
|
|
$
|
15,544
|
WHIRLPOOL
CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
FOR THE PERIODS ENDED DECEMBER 31
(Millions of dollars)
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
|
|
|
2014
(Unaudited)
|
|
|
2013
|
|
Operating
activities
|
|
|
|
|
|
|
Net
earnings
|
$
|
692
|
|
$
|
849
|
|
Adjustments to
reconcile net earnings to cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
560
|
|
540
|
|
Increase (decrease)
in LIFO inventory reserve
|
9
|
|
(26)
|
|
Changes in assets and
liabilities (Net of effects of acquisitions):
|
|
|
|
|
Accounts
receivable
|
(90)
|
|
(65)
|
|
Inventories
|
40
|
|
(86)
|
|
Accounts
payable
|
359
|
|
275
|
|
Accrued advertising
and promotions
|
121
|
|
28
|
|
Accrued expenses and
current liabilities
|
(232)
|
|
82
|
|
Taxes deferred and
payable, net
|
49
|
|
(105)
|
|
Accrued pension and
postretirement benefits
|
(181)
|
|
(184)
|
|
Employee
compensation
|
(17)
|
|
(23)
|
|
Other
|
169
|
|
(23)
|
|
Cash provided by
operating activities
|
1,479
|
|
1,262
|
|
Investing
activities
|
|
|
|
|
Capital
expenditures
|
(720)
|
|
(578)
|
|
Proceeds from sale of
assets and business
|
21
|
|
6
|
|
Change in restricted
cash
|
74
|
|
—
|
|
Acquisition of
Indesit Company S.p.A.
|
(1,356)
|
|
—
|
|
Acquisition of Hefei
Rongshida Sanyo Electric Co., Ltd.
|
(453)
|
|
—
|
|
Investment in related
businesses
|
(16)
|
|
(6)
|
|
Other
|
(6)
|
|
(4)
|
|
Cash used in
investing activities
|
(2,456)
|
|
(582)
|
|
Financing
activities
|
|
|
|
|
Proceeds from
borrowings of long-term debt
|
1,483
|
|
518
|
|
Repayments of
long-term debt
|
(606)
|
|
(513)
|
|
Net proceeds from
short-term borrowings
|
63
|
|
5
|
|
Dividends
paid
|
(224)
|
|
(187)
|
|
Repurchase of common
stock
|
(25)
|
|
(350)
|
|
Purchase of
noncontrolling interest shares
|
(5)
|
|
—
|
|
Common stock
issued
|
38
|
|
95
|
|
Other
|
(19)
|
|
(2)
|
|
Cash provided by
(used in) financing activities
|
705
|
|
(434)
|
|
Effect of exchange
rate changes on cash and equivalents
|
(82)
|
|
(34)
|
|
Increase (decrease)
in cash and equivalents
|
(354)
|
|
212
|
|
Cash and equivalents
at beginning of year
|
1,380
|
|
1,168
|
|
Cash and equivalents
at end of year
|
$
|
1,026
|
|
$
|
1,380
|
|
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, 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),
earnings (loss) before income taxes, 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 Income 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 income taxes and ongoing business earnings
per diluted share, with the most directly comparable GAAP financial
measures, operating profit, earnings before income taxes and net
earnings per diluted share available to Whirlpool, for the three
months ended December 31, 2014.
Ongoing business operating margin is calculated by dividing ongoing
business operating profit by net sales.
|
Three Months
Ended
|
|
December 31,
2014
|
|
Operating
Profit
|
|
Earnings
Before
Income Taxes
|
|
Earnings per
Diluted Share
|
Reported GAAP
Measure
|
$
|
281
|
|
|
$
|
171
|
|
|
$
|
1.02
|
|
Restructuring
Expense(a)
|
35
|
|
|
35
|
|
|
0.37
|
|
Investment
Expense(b)
|
26
|
|
|
40
|
|
|
0.42
|
|
Combined Acquisition
Related Transition Costs(c)
|
98
|
|
|
98
|
|
|
1.16
|
|
Inventory Purchase
Price Allocation(d)
|
13
|
|
|
13
|
|
|
0.13
|
|
Antitrust and
Contract Resolutions(e)
|
2
|
|
|
—
|
|
|
—
|
|
Normalized Tax Rate
Adjustment(f)
|
—
|
|
|
—
|
|
|
0.42
|
|
Ongoing Business
Measure
|
$
|
456
|
|
|
$
|
357
|
|
|
$
|
3.52
|
|
Ongoing Business Operating Profit, Ongoing Business Earnings
Before Income 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 income taxes and ongoing business earnings
per diluted share, with the most directly comparable GAAP financial
measures, operating profit, earnings before income taxes and net
earnings per diluted share available to Whirlpool, for the three
months ended December 31, 2013.
Ongoing business operating margin is calculated by dividing ongoing
business operating profit by net sales excluding BEFIEX.
|
Three Months
Ended
|
|
December 31,
2013
|
|
Operating
Profit
|
|
Earnings
Before
Income Taxes
|
|
Earnings per
Diluted Share
|
Reported GAAP
Measure
|
$
|
354
|
|
|
$
|
228
|
|
|
$
|
2.26
|
|
Brazilian (BEFIEX)
Tax Credits(g)
|
(40)
|
|
|
(40)
|
|
|
(0.50)
|
|
Restructuring
Expense(a)
|
56
|
|
|
56
|
|
|
0.53
|
|
Investment
Expense(b)
|
5
|
|
|
6
|
|
|
0.06
|
|
Antitrust
Resolutions(e)
|
—
|
|
|
44
|
|
|
0.42
|
|
Brazilian Government
Settlement(h)
|
11
|
|
|
28
|
|
|
0.27
|
|
U.S. Energy Tax
Credits(i)
|
—
|
|
|
—
|
|
|
(0.14)
|
|
Normalized Tax
Adjustment(f)
|
—
|
|
|
—
|
|
|
0.07
|
|
Ongoing Business
Measure
|
$
|
386
|
|
|
$
|
322
|
|
|
$
|
2.97
|
|
Full Year 2014 Ongoing Business Operating Profit, Ongoing
Business Earnings Before Income 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 income taxes and ongoing business earnings
per diluted share, with the most directly comparable GAAP financial
measures, operating profit, earnings before income taxes and net
earnings per diluted share available to Whirlpool, for the twelve
months ended December 31, 2014.
Ongoing business operating margin is calculated by dividing ongoing
business operating profit by net sales excluding BEFIEX.
|
Twelve Months
Ended
|
|
December 31,
2014
|
|
Operating
Profit
|
|
Earnings
Before
Income Taxes
|
|
Earnings per
Diluted Share
|
Reported GAAP
Measure
|
$
|
1,188
|
|
|
$
|
881
|
|
|
$
|
8.17
|
|
Brazilian (BEFIEX)
Tax Credits(g)
|
(14)
|
|
|
(14)
|
|
|
(0.18)
|
|
Restructuring
Expense(a)
|
136
|
|
|
136
|
|
|
1.34
|
|
Investment
Expenses(b)
|
52
|
|
|
87
|
|
|
0.86
|
|
Combined Acquisition
Related Transition Costs(c)
|
98
|
|
|
98
|
|
|
1.09
|
|
Inventory Purchase
Price Allocation(d)
|
13
|
|
|
13
|
|
|
0.13
|
|
Antitrust and
Contract Resolutions(e)
|
2
|
|
|
4
|
|
|
0.04
|
|
Normalized Tax
Adjustment(f)
|
—
|
|
|
—
|
|
|
(0.06)
|
|
Ongoing Business
Measure
|
$
|
1,475
|
|
|
$
|
1,205
|
|
|
$
|
11.39
|
|
Full Year 2013 Ongoing Business Operating Profit, Ongoing
Business Earnings Before Income 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 income taxes and ongoing business earnings
per diluted share, with the most directly comparable GAAP financial
measures, operating profit, earnings before income taxes and net
earnings per diluted share available to Whirlpool, for the twelve
months ended December 31, 2013.
Ongoing business operating margin is calculated by dividing ongoing
business operating profit by net sales excluding BEFIEX.
|
Twelve Months
Ended
|
|
December 31,
2013
|
|
Operating
Profit
|
|
Earnings
Before
Income Taxes
|
|
Earnings per
Diluted Share
|
Reported GAAP
Measure
|
$
|
1,249
|
|
|
$
|
917
|
|
|
$
|
10.24
|
|
Brazilian (BEFIEX)
Tax Credits(g)
|
(109)
|
|
|
(109)
|
|
|
(1.35)
|
|
Restructuring
Expense(a)
|
196
|
|
|
196
|
|
|
1.84
|
|
Investment
Expenses(b)
|
6
|
|
|
21
|
|
|
0.19
|
|
Brazilian Government
Settlement(h)
|
11
|
|
|
28
|
|
|
0.26
|
|
Antitrust
Resolutions(e)
|
—
|
|
|
42
|
|
|
0.40
|
|
U.S. Energy Tax
Credits(i)
|
—
|
|
|
—
|
|
|
(1.56)
|
|
Ongoing Business
Measure
|
$
|
1,353
|
|
|
$
|
1,095
|
|
|
$
|
10.02
|
|
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 December 31, 2014. Ongoing business segment
operating margin is calculated by dividing ongoing business segment
operating profit (loss) by segment net sales.
|
Three Months
Ended
|
|
|
December 31,
2014
|
|
|
Segment
Operating
Profit
(Loss)
|
|
Restructuring
Expense(a)
|
|
Investment
Expense(b)
|
|
Antitrust
Resolutions(e)
|
|
Acquisition
Related
Costs and
Inventory
PPA (c)(d)
|
|
Ongoing
Business
Segment
Operating
Profit
(Loss)
|
North
America
|
$
|
255
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
255
|
|
Latin
America
|
147
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
|
149
|
|
EMEA
|
41
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
60
|
|
|
|
101
|
|
Asia
|
(22)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
39
|
|
|
|
17
|
|
Other/Eliminations
|
(140)
|
|
|
35
|
|
|
26
|
|
|
—
|
|
|
13
|
|
|
|
(66)
|
|
Total Whirlpool
Corporation
|
$
|
281
|
|
|
$
|
35
|
|
|
$
|
26
|
|
|
$
|
2
|
|
|
$
|
111
|
|
|
$
|
456
|
|
The reconciliation provided below reconciles the non-GAAP
financial measure ongoing business segment operating profit with
the most directly comparable GAAP financial measure, reported
segment operating profit, for the three months ended December 31, 2013. Ongoing business segment
operating margin is calculated by dividing ongoing business segment
operating profit by segment net sales excluding BEFIEX.
|
Three Months
Ended
|
|
December 31,
2013
|
|
Segment
Operating
Profit
(Loss)
|
|
Restructuring
Expense(a)
|
|
Investment
Expense(b)
|
|
Brazilian
(BEFIEX)
Tax
Credits(g)
|
|
|
Brazilian
Government
Settlement(h)
|
|
|
|
Ongoing
Business
Segment
Operating
Profit
(Loss)
|
North
America
|
$
|
301
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
301
|
Latin
America
|
159
|
|
|
—
|
|
|
—
|
|
|
(40)
|
|
|
11
|
|
|
|
130
|
EMEA
|
10
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
10
|
Asia
|
10
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
10
|
Other/Eliminations
|
(126)
|
|
|
56
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
|
(65)
|
Total Whirlpool
Corporation
|
$
|
354
|
|
|
$
|
56
|
|
|
$
|
5
|
|
|
$
|
(40)
|
|
|
$
|
11
|
|
|
$
|
386
|
Footnotes:
a. During the fourth quarters of 2014 and 2013, we
recorded restructuring charges of $35
million and $56 million,
respectively. The earnings per diluted share impacts are calculated
based on income tax impacts of $8
million and $13 million,
respectively. During the full years of 2014 and 2013, we recorded
restructuring charges of $136 million
and $196 million, respectively. The
earnings per diluted share impacts are calculated based on income
tax impacts of $30 million and
$47 million, respectively.
b. During the fourth quarters of 2014 and 2013, we
recognized investment expenses of $40
million and $6 million,
respectively, primarily related to the acquisition of a majority
interest in Hefei Sanyo and,
specifically for 2014, the acquisition of Indesit. The earnings per
diluted share impacts are calculated based on income tax impacts of
$9 million and $1 million, respectively. During the full years
of 2014 and 2013, we recognized investment expenses of $87 million and $21
million, respectively, primarily related to these
acquisitions. The earnings per diluted share impacts are calculated
based on income tax impacts of $19
million and $5 million,
respectively.
c. During the fourth quarter of 2014, the company
recognized acquisition related transition costs of $98 million associated with the acquisitions of
Hefei Sanyo and Indesit. The
earnings per diluted share impact is calculated based on an income
tax impact of $21 million.
d. During the fourth quarter of 2014, the company
recognized an inventory purchase price adjustment of $13 million associated with its acquisitions of
Hefei Sanyo and Indesit. The
earnings per diluted share impact is calculated based on an income
tax impact of $3 million.
e. During the fourth quarter of 2013, we recognized
expenses of approximately $44 million
related to antitrust resolutions. The earnings per diluted share
impact is calculated based on an income tax impact of $11 million. During the full year 2014, we
recognized expenses of $4 million
related to antitrust and contract resolutions. During the full year
2013, we recognized expenses of $42
million related to antitrust resolutions. The diluted
earnings per share impact is calculated based on an income tax
impact of $1 million and $10 million, respectively.
f. During the fourth quarters of 2014 and 2013, we
made adjustments to ongoing business diluted EPS to reconcile
specific items reported to full-year effective tax rates of
approximately 22% and 24%, respectively.
g. During the fourth quarter of 2013, we monetized
Brazilian (BEFIEX) tax credits of $40
million. The earnings per diluted share impact is calculated
based on an income tax impact of $0
million. During the full years of 2014 and 2013, we
monetized Brazilian (BEFIEX) tax credits of $14 million and $109
million, respectively. The earnings per diluted share impact
is calculated based on an income tax impact of $0 million.
h. During the fourth quarter of 2013, we participated in a
Brazilian government program to settle long-standing disputes,
reducing interest and penalties. We recorded expenses of
$28 million related to the program.
The diluted earnings per share impact is calculated based on an
income tax impact of $7 million.
i. During the fourth quarter of 2013, we recognized
$11 million of U.S. energy tax
credits. The earnings per diluted share impact is calculated based
on an income tax benefit of $11
million. During the full year of 2013, we recognized
$126 million of U.S. energy tax
credits. The earnings per diluted share impact is calculated based
on an income tax benefit of $126
million.
Free Cash Flow
As defined by the company, free cash flow is cash provided by
operating activities after capital expenditures, proceeds from the
sale of assets and businesses and changes in restricted cash. The
reconciliation provided below reconciles twelve-month actual 2014
and 2013 and projected full-year free cash flow with cash provided
by operating activities, the most directly comparable GAAP
financial measure.
|
Twelve Months
Ended
December 31,
|
|
|
(millions of
dollars)
|
2014
|
2013
|
|
2015
Outlook
|
Cash Provided by
Operating Activities
|
$1,479
|
$1,262
|
|
$1,500
|
-
|
$1,650
|
Capital expenditures,
proceeds from sale of
assets/businesses
|
(699)
|
(572)
|
|
(800)
|
-
|
(850)
|
Change in restricted
cash*
|
74
|
—
|
|
—
|
-
|
—
|
Free Cash
Flow
|
$854
|
$690
|
|
$700
|
-
|
$800
|
*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