BENTON HARBOR, Mich.,
Jan. 29, 2016 /PRNewswire/
-- Whirlpool Corporation (NYSE: WHR) announced today
fourth-quarter GAAP net earnings of $180
million, or $2.28 per diluted
share, compared to $81 million, or
$1.02 per diluted share, reported for
the same prior-year period. Ongoing business earnings per diluted
share(1) totaled a record $4.10 compared to $3.52 in the same prior-year period, primarily
driven by acquisition synergies, the benefits of cost and
capacity-reduction initiatives, ongoing cost productivity and
improved price/mix.
Net sales in the quarter were $5.6
billion compared to $6.0
billion during the same prior-year period. Excluding the
impact of currency, sales increased by 4 percent.
"Our strong operational execution delivered another year of
record revenue and earnings per share along with strong free cash
flow," said Jeff M. Fettig, Chairman
and chief executive officer of Whirlpool Corporation. "These record
results demonstrate that our strategy and larger global operating
platform continue to create substantial levels of shareholder value
even in a year of unprecedented volatility in global markets."
Fourth-quarter GAAP operating profit totaled $380 million compared to $281 million in the same prior-year period.
Record fourth-quarter ongoing business operating
profit(2) totaled $468
million, or approximately 8.5 percent of sales, compared to
$456 million, or 7.6 percent of
sales, in the same prior-year period. Acquisition synergies, the
benefits of cost and capacity-reduction initiatives, ongoing cost
productivity and improved price/mix more than offset unfavorable
currency, weak emerging market demand and increased investments in
marketing, technology and products.
For the full year, GAAP net sales for 2015 were $20.9 billion compared to $19.9 billion in 2014. Excluding the impact of
foreign currency, sales increased by 18 percent. GAAP operating
profit totaled $1.3 billion, compared
to $1.2 billion in 2014. Full-year
ongoing business operating profit(2) totaled
$1.6 billion, or 7.5 percent of
sales, compared to $1.5 billion, or
7.4 percent of sales, in 2014. Revenue growth, the benefits of the
acquisitions, ongoing cost productivity, the benefits of cost and
capacity-reduction initiatives and improved price/mix more than
offset unfavorable currency, weak emerging market demand and
increased investments in marketing, technology and products. GAAP
net earnings per diluted share increased to $9.83 compared to $8.17 for 2014. Ongoing business earnings per
diluted share(1) increased to a full-year record
$12.38 compared to $11.39 for 2014.
During the twelve months ended December
31, 2015, the company reported cash provided by operating
activities of $1.2 billion compared
to $1.5 billion in the prior year.
Whirlpool Corporation reported free cash flow(3) of
$620 million in 2015 compared to
$854 million in the prior year.
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
|
2.40
|
Combined Acquisition
Related Transition Costs
|
0.30
|
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 restructuring cash
outlays related to the acquisitions of up to $200 million and capital spending of $700 to $750 million.
"Our plans to create long-term value for our shareholders remain
unchanged, and our strategic priorities remain focused on
profitable revenue growth, leading consumer innovation and best
cost structure," said Fettig. "We will continue to be decisive and
disciplined in managing operations around the world to deliver
meaningful progress toward our 2018 goals."
FOURTH-QUARTER REGIONAL REVIEW
Whirlpool North
America
Whirlpool North America
reported fourth-quarter net sales of $2.9
billion, compared to $2.8
billion in the same prior-year period. Excluding the impact
of currency, sales increased 6 percent.
The region reported a fourth-quarter operating profit of
$340 million, compared to
$255 million in the same prior-year
period. Ongoing business segment operating profit(4)
totaled a fourth-quarter record of $361
million, or approximately 12.5 percent of sales, compared to
$255 million, or 9.0 percent of
sales, in the same prior-year period. Revenue growth, improved
price/mix and ongoing cost productivity more than offset
unfavorable currency.
The company expects full-year 2016 industry unit shipments to
increase by 5 percent.
Whirlpool Europe,
Middle East and Africa
Whirlpool Europe, Middle East and Africa reported fourth-quarter net sales of
$1.5 billion, compared to
$1.7 billion in the same prior-year
period. Excluding the impact of currency, sales increased 8
percent.
The region reported fourth-quarter operating profit of
$88 million, compared to $41 million in the same prior-year period.
Ongoing business segment operating profit(4) totaled
$88 million, or 6 percent of sales,
compared to $101 million, or 6
percent of sales, in the same prior-year period. Acquisition
synergies, improved price/mix, ongoing cost productivity and the
benefits of cost and capacity-reduction initiatives offset
unfavorable currency and increased investments in marketing,
technology and products.
The company expects full-year 2016 industry unit shipments to be
flat to up 2 percent.
Whirlpool Latin
America
Whirlpool Latin America
reported fourth-quarter net sales of $0.8
billion, compared to $1.3
billion in the same prior-year period. Excluding the impact
of currency, sales decreased by 8 percent.
The region reported fourth-quarter GAAP operating profit of
$58 million, compared to $147 million in the same prior-year period.
Ongoing business segment operating profit(4) totaled
$58 million, or 6.8 percent of sales,
compared to $149 million in the same
prior-year period. Improved price/mix and the benefits of cost and
capacity-reduction initiatives were more than offset by 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
fourth-quarter net sales of $312
million, compared to $282
million in the same prior-year period. Excluding the impact
of currency, sales increased 15 percent.
The region reported a fourth-quarter GAAP operating profit of
$5 million, compared to an operating
loss of $(22) million in the same
prior-year period. Ongoing business segment operating
profit(4) totaled $11
million, or 3.6 percent of sales, compared to $17 million, or 5.6 percent of sales, in the same
prior-year period. Revenue growth and acquisition synergies were
more than offset by unfavorable currency and increased investments
in marketing, technology and products.
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.
FOURTH-QUARTER 2015 // 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
- Whirlpool Corporation was recognized for the company's
commitment to diversity and inclusion with its 13th consecutive
perfect score of 100 on the Human Rights Campaign's 2016 Corporate
Equality Index.
- The U.S. Environmental Protection Agency (EPA) recognized
Whirlpool Corporation's Supply Chain with a SmartWay® Award as an
industry leader in supply chain environmental performance and
energy efficiency.
- Michigan Veterans Affairs Agency named Whirlpool Corporation as
a Gold Level winner in their Veteran-Friendly Employer Awards.
Product Innovation
- Whirlpool brand won 4 "Best Value" awards in the U.S.
for products in laundry, dishwashing and cooking from Reviewed.com,
a leading products review web site.
- KitchenAid brand won 3 "Best New" awards in the U.S. for
dishwasher features, the best refrigerator for cooks, and the best
new finish in appliances - black stainless - from Reviewed.com, a
leading products review web site.
- Whirlpool EMEA Hotpoint(6) brand and
Whirlpool brand won Gold at this year's Designer Kitchen
& Bathroom Awards.
- Whirlpool brand in the United
Kingdom has been awarded the prestigious Consumer
Superbrands status for 2016 in recognition of its investment in
innovative technology.
- Whirlpool Asia
products-including a refrigerator, washing machine, and air
purifier- were selected for Spark Design Awards™ in recognition of
their cultural design practices.
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,
productivity and raw material prices. Many risks, contingencies and
uncertainties could cause actual results to differ materially from
Whirlpool's forward-looking statements. Among these factors are:
(1) intense competition in the home appliance industry reflecting
the impact of both new and established global competitors,
including Asian and European manufacturers; (2) acquisition and
investment-related risk, including risk associated with our
acquisitions of Hefei Sanyo and
Indesit, and risk associated with our increased presence in
emerging markets; (3) Whirlpool's ability to continue its
relationship with significant trade customers and the ability of
these trade customers to maintain or increase market share; (4)
risks related to our international operations, including changes in
foreign regulations, regulatory compliance and disruptions arising
from natural disasters or terrorist attacks; (5) fluctuations in
the cost of key materials (including steel, plastic, resins, copper
and aluminum) and components and the ability of Whirlpool to offset
cost increases; (6) the ability of Whirlpool to manage foreign
currency fluctuations; (7) litigation, tax, and legal compliance
risk and costs, especially costs which may be materially different
from the amount we expect to incur or have accrued for; (8) the
effects and costs of governmental investigations or related actions
by third parties; (9) changes in the legal and regulatory
environment including environmental and health and safety
regulations; (10) Whirlpool's ability to maintain its reputation
and brand image; (11) the ability of Whirlpool to achieve its
business plans, productivity improvements, cost control, price
increases, leveraging of its global operating platform, and
acceleration of the rate of innovation; (12) information technology
system failures and data security breaches; (13) product liability
and product recall costs; (14) inventory and other asset risk; (15)
changes in economic conditions which affect demand for our
products, including the strength of the building industry and the
level of interest rates; (16) the ability of suppliers of critical
parts, components and manufacturing equipment to deliver sufficient
quantities to Whirlpool in a timely and cost-effective manner; (17)
the uncertain global economy; (18) our ability to attract, develop
and retain executives and other qualified employees; (19) the
impact of labor relations; (20) Whirlpool's ability to obtain and
protect intellectual property rights; and (21) health care cost
trends, regulatory changes and variations between results and
estimates that could increase future funding obligations for
pension and postretirement benefit plans.
Additional information concerning these and other factors can be
found in Whirlpool's filings with the Securities and Exchange
Commission, including the most recent annual report on Form 10-K,
quarterly reports on Form 10-Q, and current reports on Form
8-K.
(6) Whirlpool ownership of the Hotpoint brand in EMEA and
Asia Pacific regions is not
affiliated with the Hotpoint brand sold in the Americas.
|
WHIRLPOOL
CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
FOR THE PERIODS ENDED DECEMBER 31
(Millions of dollars, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Twelve Months
Ended
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
Net
sales
|
$
|
5,560
|
|
$
|
6,003
|
|
$
|
20,891
|
|
$
|
19,872
|
Expenses
|
|
|
|
|
|
|
|
Cost of products
sold
|
4,558
|
|
4,977
|
|
17,201
|
|
16,477
|
Gross
margin
|
1,002
|
|
1,026
|
|
3,690
|
|
3,395
|
Selling, general and
administrative
|
547
|
|
694
|
|
2,130
|
|
2,038
|
Intangible
amortization
|
19
|
|
16
|
|
74
|
|
33
|
Restructuring
costs
|
56
|
|
35
|
|
201
|
|
136
|
Operating
profit
|
380
|
|
281
|
|
1,285
|
|
1,188
|
Other income
(expense)
|
|
|
|
|
|
|
|
Interest and sundry
income (expense)
|
(57)
|
|
(64)
|
|
(89)
|
|
(142)
|
Interest
expense
|
(41)
|
|
(46)
|
|
(165)
|
|
(165)
|
Earnings before
income taxes
|
282
|
|
171
|
|
1,031
|
|
881
|
Income tax
expense
|
93
|
|
63
|
|
209
|
|
189
|
Net
earnings
|
189
|
|
108
|
|
822
|
|
692
|
Less: Net earnings
available to noncontrolling interests
|
9
|
|
27
|
|
39
|
|
42
|
Net earnings
available to Whirlpool
|
$
|
180
|
|
$
|
81
|
|
$
|
783
|
|
$
|
650
|
Per share of
common stock
|
|
|
|
|
|
|
|
Basic net earnings
available to Whirlpool
|
$
|
2.31
|
|
$
|
1.04
|
|
$
|
9.95
|
|
$
|
8.30
|
Diluted net earnings
available to Whirlpool
|
$
|
2.28
|
|
$
|
1.02
|
|
$
|
9.83
|
|
$
|
8.17
|
Weighted-average
shares outstanding (in millions)
|
|
|
|
|
|
|
|
Basic
|
78.1
|
|
78.4
|
|
78.7
|
|
78.3
|
Diluted
|
78.9
|
|
79.8
|
|
79.7
|
|
79.6
|
|
|
|
|
|
|
|
|
WHIRLPOOL
CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(Millions of dollars, except share data)
|
|
|
|
|
|
|
December 31,
2015
|
|
December 31,
2014
|
|
(Unaudited)
|
|
|
|
Assets
|
|
|
|
Current
assets
|
|
|
|
Cash and
equivalents
|
$
|
772
|
|
$
|
1,026
|
Accounts receivable,
net of allowance of $160 and $154, respectively
|
2,530
|
|
2,768
|
Inventories
|
2,619
|
|
2,740
|
Deferred income
taxes
|
451
|
|
417
|
Prepaid and other
current assets
|
953
|
|
1,147
|
Total current
assets
|
7,325
|
|
8,098
|
Property, net of
accumulated depreciation of $5,953 and $5,959,
respectively
|
3,774
|
|
3,981
|
Goodwill
|
3,006
|
|
2,807
|
Other intangibles,
net of accumulated amortization of $327 and $267,
respectively
|
2,678
|
|
2,803
|
Deferred income
taxes
|
1,850
|
|
1,900
|
Other noncurrent
assets
|
377
|
|
413
|
Total
assets
|
$
|
19,010
|
|
$
|
20,002
|
Liabilities and
stockholders' equity
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$
|
4,403
|
|
$
|
4,730
|
Accrued
expenses
|
675
|
|
852
|
Accrued advertising
and promotions
|
706
|
|
673
|
Employee
compensation
|
452
|
|
499
|
Notes
payable
|
20
|
|
569
|
Current maturities of
long-term debt
|
508
|
|
234
|
Other current
liabilities
|
980
|
|
846
|
Total current
liabilities
|
7,744
|
|
8,403
|
Noncurrent
liabilities
|
|
|
|
Long-term
debt
|
3,470
|
|
3,544
|
Pension
benefits
|
1,025
|
|
1,123
|
Postretirement
benefits
|
390
|
|
446
|
Other noncurrent
liabilities
|
707
|
|
690
|
Total noncurrent
liabilities
|
5,592
|
|
5,803
|
Stockholders'
equity
|
|
|
|
Common stock, $1 par
value, 250 million shares authorized, 111 million and 110
million shares issued, and 77 million and 78 million shares
outstanding, respectively
|
111
|
|
110
|
Additional paid-in
capital
|
2,641
|
|
2,555
|
Retained
earnings
|
6,722
|
|
6,209
|
Accumulated other
comprehensive loss
|
(2,332)
|
|
(1,840)
|
Treasury stock, 33
million and 32 million shares, respectively
|
(2,399)
|
|
(2,149)
|
Total Whirlpool
stockholders' equity
|
4,743
|
|
4,885
|
Noncontrolling
interests
|
931
|
|
911
|
Total stockholders'
equity
|
5,674
|
|
5,796
|
Total liabilities and
stockholders' equity
|
$
|
19,010
|
|
$
|
20,002
|
WHIRLPOOL
CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
FOR THE PERIODS ENDED DECEMBER 31
(Millions of dollars)
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
|
2015
|
|
2014
|
|
(Unaudited)
|
|
|
|
Operating
activities
|
|
|
|
Net
earnings
|
$
|
822
|
|
|
$
|
692
|
Adjustments to
reconcile net earnings to cash provided by (used in) operating
activities:
|
|
|
|
Depreciation and
amortization
|
668
|
|
|
560
|
Curtailment
gain
|
(63)
|
|
|
—
|
Changes in assets and
liabilities (net of effects of acquisitions):
|
|
|
|
Accounts
receivable
|
(89)
|
|
|
(90)
|
Inventories
|
(141)
|
|
|
49
|
Accounts
payable
|
14
|
|
|
359
|
Accrued advertising
and promotions
|
74
|
|
|
121
|
Accrued expenses and
current liabilities
|
(43)
|
|
|
(232)
|
Taxes deferred and
payable, net
|
(42)
|
|
|
49
|
Accrued pension and
postretirement benefits
|
(129)
|
|
|
(181)
|
Employee
compensation
|
8
|
|
|
(17)
|
Other
|
146
|
|
|
169
|
Cash provided by
operating activities
|
1,225
|
|
|
1,479
|
Investing
activities
|
|
|
|
Capital
expenditures
|
(689)
|
|
|
(720)
|
Proceeds from sale of
assets and business
|
37
|
|
|
21
|
Change in restricted
cash
|
47
|
|
|
74
|
Acquisition of
Indesit Company S.p.A.
|
—
|
|
|
(1,356)
|
Acquisition of Hefei
Rongshida Sanyo Electric Co., Ltd.
|
—
|
|
|
(453)
|
Investment in related
businesses
|
(70)
|
|
|
(16)
|
Other
|
(6)
|
|
|
(6)
|
Cash used in
investing activities
|
(681)
|
|
|
(2,456)
|
Financing
activities
|
|
|
|
Proceeds from
borrowings of long-term debt
|
531
|
|
|
1,483
|
Repayments of
long-term debt
|
(283)
|
|
|
(606)
|
Net proceeds from
short-term borrowings
|
(465)
|
|
|
63
|
Dividends
paid
|
(269)
|
|
|
(224)
|
Repurchase of common
stock
|
(250)
|
|
|
(25)
|
Purchase of
noncontrolling interest shares
|
—
|
|
|
(5)
|
Common stock
issued
|
38
|
|
|
38
|
Other
|
(9)
|
|
|
(19)
|
Cash provided by
(used in) financing activities
|
(707)
|
|
|
705
|
Effect of exchange
rate changes on cash and cash equivalents
|
(91)
|
|
|
(82)
|
Decrease in cash
and cash equivalents
|
(254)
|
|
|
(354)
|
Cash and cash
equivalents at beginning of period
|
1,026
|
|
|
1,380
|
Cash and cash
equivalents at end of period
|
$
|
772
|
|
|
$
|
1,026
|
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.
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
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
Interest
&
Taxes(5)
|
|
Earnings
per
Diluted
Share
|
Reported GAAP
Measure
|
$
|
281
|
|
|
$
|
217
|
|
|
$
|
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 Dispute
Resolutions(e)
|
2
|
|
|
—
|
|
|
—
|
|
Normalized Tax Rate
Adjustment(f)
|
—
|
|
|
—
|
|
|
0.42
|
|
Ongoing Business
Measure
|
$
|
456
|
|
|
$
|
403
|
|
|
$
|
3.52
|
|
|
(5) Earnings Before Interest & Taxes is a non-GAAP measure
calculated by adding Interest and sundry income (expense)
[approximately $(64) million] and
Operating Profit.
Ongoing Business Operating Profit, Ongoing Business Earnings
Before Interest and
Taxes and Ongoing Business Earnings
Per Diluted Share
The reconciliation provided below reconciles the non-GAAP
financial measures ongoing business operating profit, ongoing
business earnings before interest and taxes and ongoing business
earnings per diluted share, with the most directly comparable GAAP
financial measures, operating profit and net earnings per diluted
share available to Whirlpool, for the three months ended
December 31, 2015. Ongoing business
operating margin is calculated by dividing ongoing business
operating profit by net sales.
|
|
|
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(a)
|
56
|
|
|
56
|
|
|
0.60
|
|
Combined Acquisition
Related Transition Costs(c )
|
11
|
|
|
12
|
|
|
0.13
|
|
Antitrust and Dispute
Resolutions (e)
|
21
|
|
|
22
|
|
|
0.23
|
|
Gain/Expenses Related
to a Business Investment (g)
|
—
|
|
|
18
|
|
|
0.22
|
|
Normalized Tax Rate
Adjustment(f)
|
—
|
|
|
—
|
|
|
0.64
|
|
Ongoing Business
Measure
|
$
|
468
|
|
|
$
|
431
|
|
|
$
|
4.10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5) Earnings Before Interest & Taxes is a non-GAAP measure
calculated by adding Interest and sundry income (expense)
[approximately $(57) 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
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
and
Dispute
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 (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(a)
|
|
Combined
Acquisition
Related
Transition
Costs(c)
|
|
Antitrust
and
Dispute
Resolutions
(e)
|
|
Ongoing
Business
Segment
Operating
Profit
(Loss)
|
North
America
|
$
|
340
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
21
|
|
|
$
|
361
|
|
Latin
America
|
58
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
58
|
|
EMEA
|
88
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
88
|
|
Asia
|
5
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
|
11
|
|
Other/Eliminations
|
(111)
|
|
|
56
|
|
|
5
|
|
|
—
|
|
|
|
(50)
|
|
Total Whirlpool
Corporation
|
$
|
380
|
|
|
$
|
56
|
|
|
$
|
11
|
|
|
$
|
21
|
|
|
$
|
468
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full Year 2014 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, 2014. 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,
2014
|
|
Operating
Profit
|
|
Earnings
Before
Interest
&
Taxes(5)
|
|
Earnings
per
Diluted
Share
|
Reported GAAP
Measure
|
$
|
1,188
|
|
|
$
|
1,046
|
|
|
$
|
8.17
|
|
Brazilian (BEFIEX)
Tax Credits(h)
|
(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 Dispute
Resolutions(e)
|
2
|
|
|
4
|
|
|
0.04
|
|
Normalized
Tax Rate Adjustment(f)
|
—
|
|
|
—
|
|
|
(0.06)
|
|
Ongoing Business
Measure
|
$
|
1,475
|
|
|
$
|
1,370
|
|
|
$
|
11.39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5) Earnings Before Interest & Taxes is a non-GAAP measure
calculated by adding Interest and sundry income (expense)
[approximately $(142) million] and
Operating Profit.
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
|
|
Combined Acquisition
Related Transition Costs(c)
|
57
|
|
|
64
|
|
|
0.66
|
|
Benefit Plan
Curtailment Gain (i)
|
(62)
|
|
|
(62)
|
|
|
(0.63)
|
|
Gain/Expenses Related
to a Business Investment (g)
|
—
|
|
|
(46)
|
|
|
(0.44)
|
|
Legacy Product
Warranty and Liability Expenses (j)
|
42
|
|
|
42
|
|
|
0.42
|
|
Pension Settlement
Charges (k)
|
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.
|
Footnotes:
|
|
|
a.
|
RESTRUCTURING
EXPENSE During the fourth quarters of 2015 and 2014, we
recorded restructuring charges of $56 million and $35 million,
respectively. The earnings per diluted share impacts are calculated
based on income tax impacts of $11 million and $8 million,
respectively. During the full years of 2015 and 2014, we recorded
restructuring charges of $201 million and $136 million,
respectively. The earnings per diluted share impacts are calculated
based on income tax impacts of $41 million and $30 million,
respectively.
|
|
|
b.
|
INVESTMENT
EXPENSE During the fourth quarter of 2014 we recognized an
investment expense of $40 million related to the acquisition of a
majority interest in Hefei Sanyo and the acquisition of Indesit.
The earnings per diluted share impact is calculated based on an
income tax impact of $9 million. During the full year 2014 we
recognized an investment expense of $87 million related to these
acquisitions. The earnings per diluted share impact is calculated
based on an income tax impact of $19 million.
|
|
|
c.
|
COMBINED
ACQUISITION RELATED TRANSITION COSTS During the fourth quarters
of 2015 and 2014, we recognized acquisition related transition
costs of $12 million and $98 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 $2 million and $21
million, respectively. During the full years of 2015 and 2014, we
recognized acquisition related transition costs of $64 million and
$98 million, respectively, associated with these acquisitions. The
earnings per diluted share impacts are calculated based on an
income tax impact of $13 million and $21 million,
respectively.
|
|
|
d.
|
INVENTORY PURCHASE
PRICE ALLOCATION During the fourth quarter and full year 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.
|
ANTITRUST AND
DISPUTE RESOLUTIONS During the fourth quarter of 2015, we
recognized expenses of approximately $22 million related to
antitrust and dispute resolutions. The earnings per diluted share
impact is calculated based on income tax impact of $4 million.
During the full year 2015, we recognized expenses of $35 million
related to antitrust and dispute resolutions. During the full year
2014, we recognized expenses of $4 million related to antitrust and
contract resolutions. The diluted earnings per share impact is
calculated based on an income tax impact of $7 million and $1
million, respectively.
|
|
|
f.
|
NORMALIZED TAX
RATE ADJUSTMENT During the fourth quarters of 2015 and 2014, we
made adjustments to ongoing business diluted EPS to reconcile
specific items reported to anticipated full-year effective tax
rates of 20.3% and approximately 22%, respectively.
|
|
|
g.
|
GAIN/EXPENSES
RELATED TO BUSINESS INVESTMENT During the fourth quarter of
2015, we recognized an expense related to a business investment of
$18 million. The earnings per diluted share impact is calculated
based on an income tax impact of $0 million. 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.
|
|
|
h.
|
BRAZILIAN (BEFIEX)
TAX CREDITS During the full year of 2014, we monetized
Brazilian (BEFIEX) tax credits of $14 million. The earnings per
diluted share impact is calculated based on an income tax impact of
$0 million.
|
|
|
i.
|
BENEFIT PLAN
CURTAILMENT GAIN 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.
|
|
|
j.
|
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. The earnings per diluted share impact is
calculated based on an income tax impact of $9 million.
|
|
|
k.
|
PENSION SETTLEMENT
CHARGES 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.
|
|
|
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, 2015 and 2014 and
projected 2016 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)
|
2015
|
2014
|
|
2016
Outlook
|
Cash provided by
(used in) operating activities
|
$1,225
|
$1,479
|
|
$1,400
|
-
|
$1,550
|
Capital expenditures,
proceeds from sale of assets/businesses and change in restricted
cash*
|
(605)
|
(625)
|
|
(700)
|
-
|
(750)
|
Free Cash
Flow
|
$620
|
$854
|
|
~$700
|
-
|
$800
|
|
|
|
|
|
|
|
*The change in restricted cash relates to the private placement
funds paid by Whirlpool to acquire majority control of Whirlpool
China 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