BENTON HARBOR, Mich.,
July 22, 2016 /PRNewswire/ -- Whirlpool Corporation
(NYSE: WHR) announced today second-quarter GAAP net earnings of
$320 million, or $4.15 per diluted share, compared to $177 million, or $2.21 per diluted share, reported for the same
prior-year period. Ongoing business earnings per diluted
share(1) totaled $3.50
compared to $2.70 in the same
prior-year period.
"We delivered another quarter of record earnings and margin
expansion while overcoming challenges in several key countries
through focused execution of our plans," said Jeff M. Fettig, chairman and chief executive
officer of Whirlpool Corporation. "Our leading portfolio of
brands, innovative new products and strong ongoing cost
productivity programs have enabled us to continue creating
significant value for our shareholders."
Second-quarter net sales of $5.2
billion were flat compared to the same prior-year period.
Excluding the impact of currency, sales increased by 3 percent.
Record second-quarter GAAP operating profit totaled $366 million, or 7 percent of sales, compared to
$273 million, or 5.2 percent of
sales, in the same prior-year period. Record second-quarter ongoing
business operating profit(2) totaled $435 million, or 8.4 percent of sales, compared
to $355 million, or 6.8 percent of
sales, in the same prior-year period. On a GAAP and ongoing basis,
unit volume growth, acquisition synergies, ongoing cost
productivity and benefits from cost and capacity-reduction
initiatives more than offset unfavorable impacts from foreign
currency.
For the six months ended June 30, 2016, the company
reported cash used in operating activities of $(404) million compared to $(397) million in the same prior-year period.
Whirlpool Corporation reported free cash flow(3) of
$(547) million in the first six
months of 2016 compared to $(619)
million in the same prior-year period.
SECOND-QUARTER REGIONAL REVIEW
Whirlpool North
America
Whirlpool North America
reported second-quarter net sales of $2.8
billion, compared to $2.7
billion in the same prior-year period. Excluding the impact
of currency, sales increased 4 percent.
The region reported a second-quarter GAAP operating profit of
$340 million, or 12.3 percent of
sales, compared to $287 million, or
10.7 percent of sales, in the same prior-year period. Ongoing
business segment operating profit(4) totaled
$340 million, or 12.3 percent of
sales, compared to $290 million, or
10.8 percent of sales, in the same prior-year period. On a GAAP and
ongoing basis, revenue growth and ongoing cost productivity more
than offset unfavorable impacts from foreign currency.
The company continues to expect full-year 2016 industry unit
shipments in the U.S. to increase by 5 to 6 percent.
Whirlpool Europe,
Middle East and Africa
Whirlpool Europe, Middle East and Africa reported second-quarter net sales of
$1.3 billion, down slightly from same
prior-year period. Excluding the impact of currency, sales were
flat.
The region reported second-quarter GAAP operating profit of
$46 million, or 3.5 percent of sales,
compared to $51 million, or 3.8
percent of sales, in the same prior-year period. Ongoing business
segment operating profit(4) totaled $60 million, or 4.6 percent of sales, compared to
$56 million, or 4.2 percent of sales,
in the same prior-year period. On a GAAP and ongoing basis,
operating margins were positively impacted by ongoing cost
productivity, acquisition synergies and unit volume growth and
negatively impacted by foreign currency; on a GAAP basis results
were also negatively impacted by acquisition integration costs.
The company continues to expect full-year 2016 industry unit
shipments to be flat to up 2 percent.
Whirlpool Latin
America
Whirlpool Latin America
reported second-quarter net sales of $826
million, compared to $854
million in the same prior-year period. Excluding the impact
of currency, sales increased by 4 percent.
The region reported second-quarter operating profit of
$50 million, or 6.1 percent of sales,
compared to $36 million, or 4.2
percent of sales, in the same prior-year period, driven by
favorable price mix, unit volume growth and benefits from cost and
capacity-reduction initiatives.
The company continues to expect full-year 2016 industry unit
shipments in Brazil to decrease by
10 percent.
Whirlpool Asia
Whirlpool Asia reported
second-quarter net sales of $363
million compared to $381
million in the same prior-year period. Excluding the impact
of currency, sales were flat.
The region reported a second-quarter GAAP operating profit of
$16 million, or 4.4 percent of sales,
compared to $27 million, or 7.1
percent of sales, in the same prior-year period. Ongoing business
segment operating profit(4) totaled $29 million, or 8.1 percent of sales, compared to
$31 million, or 8.1 percent of sales,
in the same prior-year period. On a GAAP and ongoing basis, the
change was primarily driven by ongoing cost productivity and volume
growth; on a GAAP basis results were also negatively impacted by
acquisition integration costs.
The company continues to expect full-year 2016 industry unit
shipments to be flat.
Regional Summary
"Investments in our leading portfolio of brands and products and
focus on operational execution delivered ex-currency revenue growth
and expanded margins," said Marc
Bitzer, president and chief operating officer of Whirlpool
Corporation. "We are well positioned to deal with continued global
volatility and have already deployed strong plans to deliver our
goals in a global environment that continues to be
challenging."
OUTLOOK
For the full year 2016, Whirlpool Corporation expects to report
GAAP earnings per diluted share of $11.50 to
$12.00 and ongoing business earnings per diluted
share(1) of $14.25 to
$14.75.
For the full year 2016, the company expects to generate cash
from operating activities of $1,400
to $1,550 million and free cash
flow(3) of $700 to $800
million. Included in this guidance are acquisition related
restructuring cash outlays of up to $200
million, legacy product warranty and liability costs of
$155 million and, with respect to
free cash flow(3), capital spending of $700 to $750 million.
"As we have demonstrated over the past five years, we continue
to rapidly respond to a volatile global environment and deliver
record results by growing revenue, expanding margins and generating
cash," said Fettig. "We remain confident and committed to our
value-creation strategy and expect to continue delivering record
financial results, a balanced approach to capital allocation and
strong investments in our business."
(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, 97,000
employees and 70 manufacturing and technology research centers
throughout the world in 2015. The company
markets Whirlpool, KitchenAid, Maytag, Consul, Brastemp,
Amana, Bauknecht, Jenn-Air, Indesit and other major brand
names in nearly every country around the world. Additional
information about the company can be found
at whirlpoolcorp.com, or find us on Twitter at
@WhirlpoolCorp.
Whirlpool Additional Information:
This document contains forward-looking statements about
Whirlpool Corporation and its consolidated subsidiaries
("Whirlpool") that speak only as of this date. Whirlpool disclaims
any obligation to update these statements. Forward-looking
statements in this document may include, but are not limited to,
statements regarding expected earnings per share, cash flow,
industry unit shipments, productivity and raw material prices. Many
risks, contingencies and uncertainties could cause actual results
to differ materially from Whirlpool's forward-looking statements.
Among these factors are: (1) intense competition in the home
appliance industry reflecting the impact of both new and
established global competitors, including Asian and European
manufacturers; (2) acquisition and investment-related risk,
including risk associated with our acquisitions of Hefei Sanyo and Indesit, and risk associated
with our increased presence in emerging markets; (3) Whirlpool's
ability to continue its relationship with significant trade
customers and the ability of these trade customers to maintain or
increase market share; (4) risks related to our international
operations, including changes in foreign regulations, regulatory
compliance and disruptions arising from natural disasters or
terrorist attacks; (5) fluctuations in the cost of key materials
(including steel, plastic, resins, copper and aluminum) and
components and the ability of Whirlpool to offset cost increases;
(6) the ability of Whirlpool to manage foreign currency
fluctuations; (7) litigation, tax, and legal compliance risk and
costs, especially costs which may be materially different from the
amount we expect to incur or have accrued for; (8) the effects and
costs of governmental investigations or related actions by third
parties; (9) changes in the legal and regulatory environment
including environmental and health and safety regulations; (10)
Whirlpool's ability to maintain its reputation and brand image;
(11) the ability of Whirlpool to achieve its business plans,
productivity improvements, cost control, price increases,
leveraging of its global operating platform, and acceleration of
the rate of innovation; (12) information technology system failures
and data security breaches; (13) product liability and product
recall costs; (14) inventory and other asset risk; (15) the
uncertain global economy and changes in economic conditions which
affect demand for our products; (16) the ability of suppliers of
critical parts, components and manufacturing equipment to deliver
sufficient quantities to Whirlpool in a timely and cost-effective
manner; (17) our ability to attract, develop and retain executives
and other qualified employees; (18) the impact of labor relations;
(19) Whirlpool's ability to obtain and protect intellectual
property rights; and (20) health care cost trends, regulatory
changes and variations between results and estimates that could
increase future funding obligations for pension and postretirement
benefit plans.
Additional information concerning these and other factors can be
found in Whirlpool's filings with the Securities and Exchange
Commission, including the most recent annual report on Form 10-K,
quarterly reports on Form 10-Q, and current reports on Form
8-K.
|
WHIRLPOOL
CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF
COMPREHENSIVE INCOME (UNAUDITED)
FOR THE PERIODS ENDED JUNE 30
(Millions of dollars,
except share data)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Net
sales
|
$
|
5,198
|
|
|
$
|
5,208
|
|
|
$
|
9,814
|
|
|
$
|
10,054
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
Cost of products
sold
|
4,230
|
|
|
4,303
|
|
|
8,025
|
|
|
8,296
|
|
|
Gross
margin
|
968
|
|
|
905
|
|
|
1,789
|
|
|
1,758
|
|
|
Selling, general and
administrative
|
544
|
|
|
556
|
|
|
1,017
|
|
|
1,054
|
|
|
Intangible
amortization
|
18
|
|
|
18
|
|
|
36
|
|
|
37
|
|
|
Restructuring
costs
|
40
|
|
|
58
|
|
|
87
|
|
|
91
|
|
|
Operating
profit
|
366
|
|
|
273
|
|
|
649
|
|
|
576
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
Interest and sundry
income (expense)
|
(39)
|
|
|
42
|
|
|
(69)
|
|
|
(11)
|
|
|
Interest
expense
|
(41)
|
|
|
(40)
|
|
|
(79)
|
|
|
(83)
|
|
|
Earnings before
income taxes
|
286
|
|
|
275
|
|
|
501
|
|
|
482
|
|
|
Income tax (benefit)
expense
|
(56)
|
|
|
90
|
|
|
3
|
|
|
99
|
|
|
Net
earnings
|
342
|
|
|
185
|
|
|
498
|
|
|
383
|
|
|
Less: Net earnings
available to noncontrolling interests
|
22
|
|
|
8
|
|
|
28
|
|
|
15
|
|
|
Net earnings
available to Whirlpool
|
$
|
320
|
|
|
$
|
177
|
|
|
$
|
470
|
|
|
$
|
368
|
|
|
Per share of
common stock
|
|
|
|
|
|
|
|
|
Basic net earnings
available to Whirlpool
|
$
|
4.20
|
|
|
$
|
2.24
|
|
|
$
|
6.13
|
|
|
$
|
4.66
|
|
|
Diluted net earnings
available to Whirlpool
|
$
|
4.15
|
|
|
$
|
2.21
|
|
|
$
|
6.06
|
|
|
$
|
4.60
|
|
|
Dividends
declared
|
$
|
1.00
|
|
|
$
|
0.90
|
|
|
$
|
1.90
|
|
|
$
|
1.65
|
|
|
Weighted-average
shares outstanding (in millions)
|
|
|
|
|
|
|
|
|
Basic
|
76.2
|
|
79.1
|
|
76.7
|
|
78.9
|
|
Diluted
|
77.1
|
|
80.0
|
|
77.6
|
|
80.0
|
|
|
|
|
|
|
|
|
|
Comprehensive
income
|
$
|
299
|
|
|
$
|
222
|
|
|
$
|
611
|
|
|
$
|
209
|
|
|
WHIRLPOOL
CORPORATION
CONSOLIDATED CONDENSED BALANCE
SHEETS
(Millions of dollars, except share
data)
|
|
|
June 30,
2016
|
|
December 31,
2015
|
|
(Unaudited)
|
|
|
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
$
|
959
|
|
|
$
|
772
|
|
|
Accounts receivable,
net of allowance of $181 and $160, respectively
|
2,797
|
|
|
2,530
|
|
|
Inventories
|
3,204
|
|
|
2,619
|
|
|
Deferred income
taxes
|
421
|
|
|
451
|
|
|
Prepaid and other
current assets
|
992
|
|
|
953
|
|
|
Total current
assets
|
8,373
|
|
|
7,325
|
|
|
Property, net of
accumulated depreciation of $6,261 and $5,953,
respectively
|
3,742
|
|
|
3,774
|
|
|
Goodwill
|
3,017
|
|
|
3,006
|
|
|
Other intangibles,
net of accumulated amortization of $357 and $327,
respectively
|
2,636
|
|
|
2,678
|
|
|
Deferred income
taxes
|
1,843
|
|
|
1,850
|
|
|
Other noncurrent
assets
|
357
|
|
|
377
|
|
|
Total
assets
|
$
|
19,968
|
|
|
$
|
19,010
|
|
|
Liabilities and
stockholders' equity
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts
payable
|
$
|
4,391
|
|
|
$
|
4,403
|
|
|
Accrued
expenses
|
698
|
|
|
675
|
|
|
Accrued advertising
and promotions
|
601
|
|
|
706
|
|
|
Employee
compensation
|
406
|
|
|
452
|
|
|
Notes
payable
|
997
|
|
|
20
|
|
|
Current maturities of
long-term debt
|
510
|
|
|
508
|
|
|
Other current
liabilities
|
923
|
|
|
980
|
|
|
Total current
liabilities
|
8,526
|
|
|
7,744
|
|
|
Noncurrent
liabilities
|
|
|
|
|
Long-term
debt
|
3,712
|
|
|
3,470
|
|
|
Pension
benefits
|
982
|
|
|
1,025
|
|
|
Postretirement
benefits
|
344
|
|
|
390
|
|
|
Other noncurrent
liabilities
|
571
|
|
|
707
|
|
|
Total noncurrent
liabilities
|
5,609
|
|
|
5,592
|
|
|
Stockholders'
equity
|
|
|
|
|
Common stock, $1 par
value, 250 million shares authorized, 111 million shares
issued, and 75 million and 77 million shares outstanding,
respectively
|
111
|
|
|
111
|
|
|
Additional paid-in
capital
|
2,659
|
|
|
2,641
|
|
|
Retained
earnings
|
7,047
|
|
|
6,722
|
|
|
Accumulated other
comprehensive loss
|
(2,221)
|
|
|
(2,332)
|
|
|
Treasury stock, 35
million and 33 million shares, respectively
|
(2,724)
|
|
|
(2,399)
|
|
|
Total Whirlpool
stockholders' equity
|
4,872
|
|
|
4,743
|
|
|
Noncontrolling
interests
|
961
|
|
|
931
|
|
|
Total stockholders'
equity
|
5,833
|
|
|
5,674
|
|
|
Total liabilities and
stockholders' equity
|
$
|
19,968
|
|
|
$
|
19,010
|
|
|
WHIRLPOOL
CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF CASH
FLOWS (UNAUDITED)
FOR THE PERIODS ENDED JUNE 30
(Millions of dollars)
|
|
|
Six Months
Ended
|
|
2016
|
|
2015
|
|
Operating
activities
|
|
|
|
|
Net
earnings
|
$
|
498
|
|
|
$
|
383
|
|
|
Adjustments to
reconcile net earnings to cash provided by (used in) operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
332
|
|
|
331
|
|
|
Curtailment
gain
|
—
|
|
|
(47)
|
|
|
Changes in assets and
liabilities:
|
|
|
|
|
Accounts
receivable
|
(248)
|
|
|
(94)
|
|
|
Inventories
|
(528)
|
|
|
(458)
|
|
|
Accounts
payable
|
(98)
|
|
|
(327)
|
|
|
Accrued advertising
and promotions
|
(112)
|
|
|
(149)
|
|
|
Accrued expenses and
current liabilities
|
(9)
|
|
|
(32)
|
|
|
Taxes deferred and
payable, net
|
(132)
|
|
|
(8)
|
|
|
Accrued pension and
postretirement benefits
|
(32)
|
|
|
(28)
|
|
|
Employee
compensation
|
(48)
|
|
|
(73)
|
|
|
Other
|
(27)
|
|
|
105
|
|
|
Cash used in
operating activities
|
(404)
|
|
|
(397)
|
|
|
Investing
activities
|
|
|
|
|
Capital
expenditures
|
(206)
|
|
|
(268)
|
|
|
Proceeds from sale of
assets and business
|
51
|
|
|
34
|
|
|
Change in restricted
cash
|
12
|
|
|
12
|
|
|
Investment in related
businesses
|
(8)
|
|
|
(21)
|
|
|
Other
|
(1)
|
|
|
—
|
|
|
Cash used in
investing activities
|
(152)
|
|
|
(243)
|
|
|
Financing
activities
|
|
|
|
|
Proceeds from
borrowings of long-term debt
|
491
|
|
|
523
|
|
|
Repayments of
long-term debt
|
(257)
|
|
|
(271)
|
|
|
Net proceeds from
short-term borrowings
|
968
|
|
|
237
|
|
|
Dividends
paid
|
(145)
|
|
|
(130)
|
|
|
Repurchase of common
stock
|
(325)
|
|
|
(50)
|
|
|
Common stock
issued
|
10
|
|
|
36
|
|
|
Other
|
—
|
|
|
(3)
|
|
|
Cash provided by
financing activities
|
742
|
|
|
342
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
1
|
|
|
(37)
|
|
|
Increase (decrease)
in cash and cash equivalents
|
187
|
|
|
(335)
|
|
|
Cash and cash
equivalents at beginning of period
|
772
|
|
|
1,026
|
|
|
Cash and cash
equivalents at end of period
|
$
|
959
|
|
|
$
|
691
|
|
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.
Second-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 June 30, 2016. Ongoing
business operating margin is calculated by dividing ongoing
business operating profit 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%.
|
Three Months
Ended
|
|
June 30,
2016
|
|
Operating
Profit
|
|
Earnings
Before
Interest &
Taxes(5)
|
|
Earnings
per
Diluted
Share
|
|
Reported GAAP
Measure
|
$
|
366
|
|
|
$
|
327
|
|
|
$
|
4.15
|
|
|
Restructuring
Expense
|
40
|
|
|
40
|
|
|
0.52
|
|
|
Acquisition Related
Transition
Costs
|
30
|
|
|
30
|
|
|
0.39
|
|
|
Legacy Product
Warranty and
Liability
Expense(c)
|
(1)
|
|
|
1
|
|
|
0.01
|
|
|
Income Tax
Impact
|
—
|
|
|
—
|
|
|
(0.17)
|
|
|
Normalized Tax Rate
Adjustment(b)
|
—
|
|
|
—
|
|
|
(1.40)
|
|
|
Ongoing Business
Measure
|
$
|
435
|
|
|
$
|
398
|
|
|
$
|
3.50
|
|
Earnings Before Interest & Taxes Reconciliation:
|
Net earnings
available to Whirlpool
|
$
|
320
|
|
|
Net earnings
available to noncontrolling interests
|
22
|
|
|
Income tax expense
(benefit)
|
(56)
|
|
|
Interest
expense
|
41
|
|
|
Earnings Before
Interest & Taxes(5)
|
$
|
327
|
|
Second-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 June 30, 2015. Ongoing
business operating margin is calculated by dividing ongoing
business operating profit 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 24%.
|
Three Months
Ended
|
|
June 30,
2015
|
|
Operating
Profit
|
|
Earnings
Before
Interest
&
Taxes(5)
|
|
Earnings
per
Diluted
Share
|
|
Reported GAAP
Measure
|
$
|
273
|
|
|
$
|
315
|
|
|
$
|
2.21
|
|
|
Restructuring
Expense
|
58
|
|
|
58
|
|
|
0.72
|
|
|
Acquisition Related
Transition Costs
|
21
|
|
|
21
|
|
|
0.26
|
|
|
Pension Settlement
Charges(a)
|
3
|
|
|
3
|
|
|
0.04
|
|
|
Gain/Expenses Related
to a Business
Investment
|
—
|
|
|
(65)
|
|
|
(0.81)
|
|
|
Antitrust and Dispute
Resolutions
|
—
|
|
|
3
|
|
|
0.04
|
|
|
Income Tax
Impact
|
—
|
|
|
—
|
|
|
(0.03)
|
|
|
Normalized Tax Rate
Adjustment(b)
|
—
|
|
|
—
|
|
|
0.27
|
|
|
Ongoing Business
Measure
|
$
|
355
|
|
|
$
|
335
|
|
|
$
|
2.70
|
|
Earnings Before Interest & Taxes Reconciliation:
|
Net earnings
available to Whirlpool
|
$
|
177
|
|
|
Net earnings
available to noncontrolling interests
|
8
|
|
|
Income tax expense
(benefit)
|
90
|
|
|
Interest
expense
|
40
|
|
|
Earnings Before
Interest & Taxes(5)
|
$
|
315
|
|
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
June 30, 2016. Ongoing business segment operating margin is
calculated by dividing ongoing business segment operating profit
(loss) by segment net sales.
|
Three Months
Ended
|
|
June 30,
2016
|
|
Segment Operating
Profit (Loss)
|
|
Restructuring
Expense
|
|
Acquisition Related
Transition Costs
|
|
Legacy Product
Warranty and Liability Expense(c)
|
|
Ongoing Business
Segment Operating Profit (Loss)
|
|
North
America
|
$
|
340
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
340
|
|
|
Latin
America
|
50
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
50
|
|
|
EMEA
|
46
|
|
|
—
|
|
|
15
|
|
|
(1)
|
|
|
60
|
|
|
Asia
|
16
|
|
|
—
|
|
|
13
|
|
|
—
|
|
|
29
|
|
|
Other/Eliminations
|
(86)
|
|
|
40
|
|
|
2
|
|
|
—
|
|
|
(44)
|
|
|
Total Whirlpool
Corporation
|
$
|
366
|
|
|
$
|
40
|
|
|
$
|
30
|
|
|
$
|
(1)
|
|
|
$
|
435
|
|
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
June 30, 2015. Ongoing business segment operating margin is
calculated by dividing ongoing business segment operating profit
(loss) by segment net sales.
|
Three Months
Ended
|
|
June 30,
2015
|
|
Segment Operating
Profit (Loss)
|
|
Restructuring
Expense
|
|
Acquisition Related
Transition Costs
|
|
Pension Settlement
Charges(a)
|
|
Ongoing Business
Segment Operating Profit (Loss)
|
|
North
America
|
$
|
287
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3
|
|
|
$
|
290
|
|
|
Latin
America
|
36
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
36
|
|
|
EMEA
|
51
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
56
|
|
|
Asia
|
27
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
31
|
|
|
Other/Eliminations
|
(128)
|
|
|
58
|
|
|
12
|
|
|
—
|
|
|
(58)
|
|
|
Total Whirlpool
Corporation
|
$
|
273
|
|
|
$
|
58
|
|
|
$
|
21
|
|
|
$
|
3
|
|
|
$
|
355
|
|
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 and ongoing
business earnings per diluted share, with the most directly
comparable GAAP financial measures, operating profit and net
earnings per diluted share available to Whirlpool, for the twelve
months ending December 31, 2016. Ongoing business operating
margin is calculated by dividing ongoing business operating profit
by net sales. Ongoing business EBIT margin is calculated by
dividing ongoing business EBIT by net sales. 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,
2016
|
|
Operating
Profit
|
|
Earnings
Before
Interest &
Taxes(5)
|
|
Earnings
per
Diluted
Share
|
|
Reported GAAP
Measure
|
$ 1,560 -
1,635
|
|
$ 1,425 -
1,500
|
|
$ 11.50 -
12.00
|
|
Restructuring
Expense
|
200
|
|
200
|
|
2.58
|
|
Acquisition
Related
Transition
Costs
|
60
|
|
60
|
|
0.77
|
|
Legacy Product
Warranty
and Liability
Expense(c)
|
3
|
|
6
|
|
0.08
|
|
Income Tax
Impact
|
—
|
|
—
|
|
(0.68)
|
|
Ongoing Business
Measure
|
$ 1,825 -
1,900
|
|
$ 1,700 -
1,775
|
|
$ 14.25 -
14.75
|
(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 item 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: Adjustments are required to calculate full-year 2016
ongoing operating margins for the North
America, Latin America,
EMEA and Asia regions. The
acquisition related transition cost adjustment is expected to have
a $41 million impact in the EMEA
region and a $15 million impact in
the Asia region. The legacy
product warranty and liability expense adjustment is expected to
have a $3 million impact in the
North America region
Note: Numbers may not reconcile due to rounding
Full-Year 2015 Ongoing Business Operating Profit, Ongoing
Business Earnings Before Interest and Taxes and Ongoing Business
Earnings per Diluted Share
The reconciliation provided below reconciles the non-GAAP
financial measures ongoing business operating profit, ongoing
business earnings before interest and taxes and ongoing business
earnings per diluted share, with the most directly comparable GAAP
financial measures, operating profit, 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
|
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
|
|
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 second quarters of 2015 and 2016,
we made adjustments to ongoing business diluted EPS to reconcile
specific items reported to anticipated full-year effective tax
rates of approximately 24% and 22%, respectively.
|
|
|
|
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.
|
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 six months ended
June 30, 2016 and 2015 and projected 2016 full-year free cash
flow with cash provided by (used in) operating activities, the most
directly comparable GAAP financial measure.
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
|
|
|
|
(millions of
dollars)
|
2016
|
2015
|
|
2016
Outlook
|
|
Cash provided by
(used in) operating activities
|
$(404)
|
$(397)
|
|
$1,400 -
$1,550
|
|
Capital expenditures,
proceeds from sale of assets/businesses and change in restricted
cash*
|
(143)
|
(222)
|
|
(700) -
(750)
|
|
Free Cash
Flow
|
$(547)
|
$(619)
|
|
$700 -
$800
|
|
|
|
|
|
|
Cash used in
investing activities**
|
$(152)
|
$(243)
|
|
|
|
Cash provided by
financing activities**
|
$742
|
$342
|
|
|
*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.
Logo -
http://photos.prnewswire.com/prnh/20040202/DETU004LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/whirlpool-corporation-reports-record-second-quarter-2016-results-300302554.html
SOURCE Whirlpool Corporation