BENTON HARBOR, Mich.,
July 22, 2015 /PRNewswire/
-- Whirlpool Corporation (NYSE: WHR) announced today
second-quarter GAAP net earnings of $177
million, or $2.21 per diluted
share, compared to $179 million, or
$2.25 per diluted share, reported for
the same prior-year period. Ongoing business earnings per diluted
share(1) totaled a second quarter record $2.70, compared to $2.62 in the same prior-year period. The benefit
of cost and capacity-reduction initiatives, favorable price/mix and
benefits from the acquisition integration activities offset
unfavorable currency and a weakened demand environment in
Brazil.
Net sales in the quarter were a second-quarter record
$5.2 billion compared to $4.7 billion during the same prior-year period,
an increase of over 11 percent. Excluding the impact of foreign
currency, sales increased over 25 percent, primarily driven by the
acquisitions.
"Whirlpool delivered strong financial results in the second
quarter," said Jeff M. Fettig,
chairman and chief executive officer of Whirlpool Corporation.
"These record results reflect the strength of our expanded global
platform and we have the actions in place to deliver record
second-half performance."
Second-quarter GAAP operating profit totaled $273 million compared to $291 million in the same prior-year period.
Record second-quarter ongoing business operating
profit(2) totaled $355
million, or 6.8 percent of sales, compared to $330 million, or 7.1 percent of sales, in the
same prior-year period. Ongoing business operating margins
benefited from acquisition integration activities, cost and
capacity-reduction initiatives and ongoing cost productivity, which
were more than offset by unfavorable currency.
For the six months ended June 30,
2015, the company reported cash used in operating activities
of $(397) million compared to cash
used in operating activities of $(368)
million in the same prior-year period. Whirlpool Corporation
reported free cash flow(3) of $(619) million in the first half of 2015 compared
to free cash flow(3) of $(622)
million in the same prior-year period.
OUTLOOK
Whirlpool Corporation has increased its full-year 2015 GAAP net
earnings per diluted share guidance to reflect a gain related to a
business investment in Latin
America. The company now expects full-year GAAP net earnings
per diluted share available to Whirlpool of $9.50 to $10.50. This adjustment does not impact
the company's expectations for ongoing business earnings per
diluted share. As such, the company continues to expect full-year
ongoing business earnings per diluted share of $12.00 to $13.00.
|
2015 EPS
Outlook
|
Prior GAAP Diluted
EPS(i)
|
$9.00-$10.00
|
Gain Related to a
Business Investment
|
0.62
|
Additional
Acquisition Related Transition Costs
|
(0.21)
|
Current GAAP Diluted
EPS(i)
|
$9.50-$10.50
|
Benefit Plan
Curtailment Gain
|
(0.44)
|
Restructuring
Expense
|
2.85
|
Combined Acquisition
Related Transition Cost
|
0.57
|
Pension Settlement
Charges
|
0.15
|
Gain Related to a
Business Investment
|
(0.62)
|
Antitrust
Resolutions
|
0.12
|
Ongoing Business
Diluted EPS (i)
|
$12.00–$13.00
|
(i) Diluted EPS
available to Whirlpool.
|
|
For the full-year 2015, the company continues to expect to
generate free cash flow(3) of approximately $700 million. Included in this guidance are
restructuring cash outlays of up to $250
million, capital spending of approximately $750 million to $800 million and U.S. pension
contributions of approximately $72
million.
"Our long-term growth strategy remains on track," said Fettig,
"and we have the appropriate plans and operational focus to
continue delivering strong returns to our shareholders."
SECOND-QUARTER REGIONAL REVIEW
Whirlpool North
America
Whirlpool North America
reported second-quarter net sales of $2.7
billion, up slightly from the same prior-year period.
Excluding the impact of currency, sales increased over 1
percent.
The region reported a second-quarter operating profit of
$287 million, compared to
$285 million in the same prior-year
period. Ongoing business segment operating profit(4)
totaled a second quarter record of $290
million, or 10.8 percent of sales, compared to $285 million, or 10.6 percent of sales, in the
same prior-year period. Higher unit volumes and ongoing cost
productivity offset unfavorable currency.
The company expects full-year 2015 industry unit shipments to
increase by approximately 4 percent.
Whirlpool Europe,
Middle East and Africa
Whirlpool Europe, Middle East and Africa reported second-quarter net sales of
$1.3 billion, compared to
$0.7 billion in the same prior-year
period, an increase of 79 percent. Excluding the impact of
currency, sales increased over 127 percent.
The region reported second-quarter operating profit of
$51 million, compared to $2 million in the same prior-year period. Ongoing
business segment operating profit(4) totaled a second
quarter record $56 million, or 4.2
percent of sales, compared to $2
million, or 0.2 percent of sales, in the same prior-year
period. The benefits from acquisition integration activities,
ongoing cost productivity and the benefit of cost and
capacity-reduction initiatives more than offset unfavorable
currency.
The company expects full-year 2015 industry unit shipments to be
flat to up 2 percent.
Whirlpool Latin
America
Whirlpool Latin America
reported second-quarter net sales of $0.9
billion, compared to $1.1
billion in the same prior-year period. Excluding the impact
of currency, sales increased by 1 percent.
The region reported second-quarter GAAP operating profit of
$36 million, or 4.2 percent of sales,
compared to $87 million, or 8.0
percent of sales, in the same prior-year period. Improved product
price/mix and the benefit of cost and capacity reductions were more
than offset by unfavorable currency and lower unit volumes due to a
weaker demand environment in Brazil.
The company now expects full-year 2015 industry unit shipments
to decrease by approximately 15 percent.
Whirlpool Asia
Whirlpool Asia reported
second-quarter net sales of $381
million, compared to $211
million in the same prior-year period, an increase of 81
percent. Excluding the impact of currency, sales increased over 85
percent.
The region reported a second-quarter GAAP operating profit of
$27 million, compared to an operating
profit of $4 million in the same
prior-year period. Ongoing business segment operating
profit(4) totaled a second quarter record $31 million, or 8.1 percent of sales, compared to
$4 million, or 1.9 percent of sales,
in the same prior-year period. Benefits from acquisition
integration activities, ongoing cost productivity and the benefits
of cost and capacity-reduction initiatives positively impacted
margins.
The company expects full-year 2015 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.
SECOND 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 ranked as one of CR (Corporate
Responsibility) magazine's Top 100 Best Corporate Citizens for 2015
with high scores in the categories of Human Rights, Employee
Relations, Corporate Governance and Philanthropy.
- The Reputation Institute ranked Whirlpool Corporation among the
2015 Global RepTrak® 100, which ranks the reputation of the 100
most highly regarded companies across 15 countries.
- CIO (Chief Information Officer) magazine awarded Whirlpool
Corporation their 2015 CIO 100 award.
Product Innovation
- The KitchenAid Cook Processor and the KitchenAid
Torrent Blender were recognized by Ambiente's "Kitchen
Innovation of the Year" awards in best of the best and small
domestic appliances categories.
- Maytag brand's new Maytag
Man campaign was given Gold and Silver Effie Awards, which
honor the best marketing and communications in the advertising
industry.
- The Whirlpool HybridCare Heat Pump Dryer was given a
Parade of Products Award at the Pacific Coast Builder Conference,
as well as an EE (Energy Efficiency) Visionary Award.
- The KitchenAid Precision Press, part of the new craft
coffee line, was honored as an Innovation Award Finalist by the
International Housewares Association.
- KitchenAid brand's new pour-over coffee brewer is now a
Certified Home Brewer from the Specialty Coffee Association of
America (SCAA) and has received the European Coffee Brewer Center
(ECBC) Seal of Approval (Golden Cup standard).
- Whirlpool brand in Brazil was recently honored with Gold and
Bronze Awards from the Brazilian Direct Marketing Association
(ABMED).
- Consul brand air conditioner category was recognized
with a Top of Mind Prize by Amanhã magazine.
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 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.
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
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
Net
sales
|
$
|
5,208
|
|
$
|
4,682
|
|
$
|
10,054
|
|
$
|
9,045
|
Expenses
|
|
|
|
|
|
|
|
Cost of products
sold
|
4,303
|
|
3,895
|
|
8,296
|
|
7,503
|
Gross
margin
|
905
|
|
787
|
|
1,758
|
|
1,542
|
Selling, general and
administrative
|
556
|
|
457
|
|
1,054
|
|
896
|
Intangible
amortization
|
18
|
|
5
|
|
37
|
|
11
|
Restructuring
costs
|
58
|
|
34
|
|
91
|
|
63
|
Operating
profit
|
273
|
|
291
|
|
576
|
|
572
|
Other income
(expense)
|
|
|
|
|
|
|
|
Interest and sundry
income (expense)
|
42
|
|
(16)
|
|
(11)
|
|
(39)
|
Interest
expense
|
(40)
|
|
(40)
|
|
(83)
|
|
(84)
|
Earnings before
income taxes
|
275
|
|
235
|
|
482
|
|
449
|
Income tax
expense
|
90
|
|
50
|
|
99
|
|
100
|
Net
earnings
|
185
|
|
185
|
|
383
|
|
349
|
Less: Net earnings
available to noncontrolling interests
|
8
|
|
6
|
|
15
|
|
10
|
Net earnings
available to Whirlpool
|
$
|
177
|
|
$
|
179
|
|
$
|
368
|
|
$
|
339
|
Per share of
common stock
|
|
|
|
|
|
|
|
Basic net earnings
available to Whirlpool
|
$
|
2.24
|
|
$
|
2.29
|
|
$
|
4.66
|
|
$
|
4.34
|
Diluted net earnings
available to Whirlpool
|
$
|
2.21
|
|
$
|
2.25
|
|
$
|
4.60
|
|
$
|
4.27
|
Dividends
declared
|
$
|
0.90
|
|
$
|
0.75
|
|
$
|
1.65
|
|
$
|
1.375
|
Weighted-average
shares outstanding (in millions)
|
|
|
|
|
|
|
|
Basic
|
79.1
|
|
78.3
|
|
78.9
|
|
78.2
|
Diluted
|
80.0
|
|
79.6
|
|
80.0
|
|
79.6
|
|
|
|
|
|
|
|
|
Comprehensive income
(loss)
|
$
|
222
|
|
$
|
184
|
|
$
|
209
|
|
$
|
390
|
WHIRLPOOL
CORPORATION
|
CONSOLIDATED
CONDENSED BALANCE SHEETS
|
(Millions of
dollars, except share data)
|
|
|
June 30,
2015
|
|
December 31,
2014
|
|
(Unaudited)
|
|
|
|
Assets
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and
equivalents
|
$
|
691
|
|
$
|
1,026
|
Accounts receivable,
net of allowance of $174 and $154, respectively
|
2,702
|
|
2,768
|
Inventories
|
3,086
|
|
2,740
|
Deferred income
taxes
|
350
|
|
417
|
Prepaid and other
current assets
|
1,044
|
|
1,147
|
Total current
assets
|
7,873
|
|
8,098
|
Property, net of
accumulated depreciation of $6,029 and $5,959,
respectively
|
3,813
|
|
3,981
|
Goodwill
|
2,792
|
|
2,807
|
Other intangibles,
net of accumulated amortization of $293 and $267,
respectively
|
2,707
|
|
2,803
|
Deferred income
taxes
|
1,884
|
|
1,900
|
Other noncurrent
assets
|
444
|
|
413
|
Total
assets
|
$
|
19,513
|
|
$
|
20,002
|
Liabilities and
stockholders' equity
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$
|
4,179
|
|
$
|
4,730
|
Accrued
expenses
|
809
|
|
852
|
Accrued advertising
and promotions
|
514
|
|
673
|
Employee
compensation
|
408
|
|
499
|
Notes
payable
|
740
|
|
569
|
Current maturities of
long-term debt
|
267
|
|
234
|
Other current
liabilities
|
879
|
|
846
|
Total current
liabilities
|
7,796
|
|
8,403
|
Noncurrent
liabilities
|
|
|
|
Long-term
debt
|
3,750
|
|
3,544
|
Pension
benefits
|
1,061
|
|
1,123
|
Postretirement
benefits
|
431
|
|
446
|
Other noncurrent
liabilities
|
627
|
|
690
|
Total noncurrent
liabilities
|
5,869
|
|
5,803
|
Stockholders'
equity
|
|
|
|
Common stock, $1 par
value, 250 million shares authorized, 110 million shares
issued, and 78 million shares outstanding
|
110
|
|
110
|
Additional paid-in
capital
|
2,586
|
|
2,555
|
Retained
earnings
|
6,446
|
|
6,209
|
Accumulated other
comprehensive loss
|
(2,012)
|
|
(1,840)
|
Treasury stock, 32
million shares
|
(2,199)
|
|
(2,149)
|
Total Whirlpool
stockholders' equity
|
4,931
|
|
4,885
|
Noncontrolling
interests
|
917
|
|
911
|
Total stockholders'
equity
|
5,848
|
|
5,796
|
Total liabilities and
stockholders' equity
|
$
|
19,513
|
|
$
|
20,002
|
WHIRLPOOL
CORPORATION
|
CONSOLIDATED
CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)
|
FOR THE PERIODS
ENDED JUNE 30
|
(Millions of
dollars)
|
|
|
Six Months
Ended
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
Operating
activities
|
|
|
|
Net
earnings
|
$
|
383
|
|
|
$
|
349
|
Adjustments to
reconcile net earnings to cash used in operating
activities:
|
|
|
|
Depreciation and
amortization
|
331
|
|
|
261
|
Curtailment
gain
|
(47)
|
|
|
—
|
Changes in assets and
liabilities:
|
|
|
|
Accounts
receivable
|
(94)
|
|
|
(215)
|
Inventories
|
(458)
|
|
|
(375)
|
Accounts
payable
|
(327)
|
|
|
(41)
|
Accrued advertising
and promotions
|
(149)
|
|
|
(88)
|
Accrued expenses and
current liabilities
|
(32)
|
|
|
(71)
|
Taxes deferred and
payable, net
|
(8)
|
|
|
16
|
Accrued pension and
postretirement benefits
|
(28)
|
|
|
(69)
|
Employee
compensation
|
(73)
|
|
|
(84)
|
Other
|
105
|
|
|
(51)
|
Cash used in
operating activities
|
(397)
|
|
|
(368)
|
Investing
activities
|
|
|
|
Capital
expenditures
|
(268)
|
|
|
(265)
|
Proceeds from sale of
assets and business
|
34
|
|
|
11
|
Change in restricted
cash
|
12
|
|
|
—
|
Investment in related
businesses
|
(21)
|
|
|
(36)
|
Cash used in
investing activities
|
(243)
|
|
|
(290)
|
Financing
activities
|
|
|
|
Proceeds from
borrowings of long-term debt
|
523
|
|
|
818
|
Repayments of
long-term debt
|
(271)
|
|
|
(504)
|
Net proceeds from
short-term borrowings
|
237
|
|
|
(6)
|
Dividends
paid
|
(130)
|
|
|
(107)
|
Common stock
issued
|
36
|
|
|
28
|
Repurchase of common
stock
|
(50)
|
|
|
—
|
Purchase of
noncontrolling interest shares
|
—
|
|
|
(5)
|
Other
|
(3)
|
|
|
(9)
|
Cash provided by
financing activities
|
342
|
|
|
215
|
Effect of exchange
rate changes on cash and equivalents
|
(37)
|
|
|
8
|
Decrease in cash and
equivalents
|
(335)
|
|
|
(435)
|
Cash and equivalents
at beginning of period
|
1,026
|
|
|
1,380
|
Cash and equivalents
at end of period
|
$
|
691
|
|
|
$
|
945
|
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
June 30, 2015. Ongoing business
operating margin is calculated by dividing ongoing business
operating profit by net sales.
|
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(a)
|
58
|
|
|
58
|
|
|
0.55
|
|
Acquisition Related
Transition Cost(b)
|
21
|
|
|
21
|
|
|
0.23
|
|
Pension Settlement
Charge(c)
|
3
|
|
|
3
|
|
|
0.03
|
|
Gain Related to a
Business Investment(d)
|
—
|
|
|
(65)
|
|
|
(0.62)
|
|
Antitrust
Resolutions(e)
|
—
|
|
|
3
|
|
|
0.03
|
|
Normalized Tax Rate
Adjustment(f)
|
—
|
|
|
—
|
|
|
0.27
|
|
Ongoing Business
Measure
|
$
|
355
|
|
|
$
|
335
|
|
|
$
|
2.70
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5) Earnings Before Interest & Taxes is a non-GAAP measure
calculated by adding Interest and sundry income (expense)
[approximately $42 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
June 30, 2014. Ongoing business
operating margin is calculated by dividing ongoing business
operating profit by net sales.
|
Three Months
Ended
|
|
June 30,
2014
|
|
Operating
Profit
|
|
Earnings
Before
Interest
&
Taxes(5)
|
|
Earnings
per
Diluted
Share
|
Reported GAAP
Measure
|
$
|
291
|
|
|
$
|
275
|
|
|
$
|
2.25
|
|
Restructuring
Expense(a)
|
34
|
|
|
34
|
|
|
0.33
|
|
Investment
Expense(g)
|
5
|
|
|
13
|
|
|
0.12
|
|
Antitrust
Resolutions(e)
|
—
|
|
|
1
|
|
|
0.01
|
|
Normalized Tax Rate
Adjustment(f)
|
—
|
|
|
—
|
|
|
(0.09)
|
|
Ongoing Business
Measure
|
$
|
330
|
|
|
$
|
323
|
|
|
$
|
2.62
|
|
|
|
|
|
|
|
|
|
|
(5) Earnings Before Interest & Taxes is a non-GAAP measure
calculated by adding Interest and sundry income (expense)
[approximately $(16) 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, 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(a)
|
|
Acquisition
Related
Transition
Cost(b)
|
|
Pension
Settlement(c)
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 2014. Ongoing business
segment operating margin is calculated by dividing ongoing business
segment operating profit (loss) by segment net sales.
|
Three Months
Ended
|
|
June 30,
2014
|
|
Segment
Operating
Profit
(Loss)
|
|
Restructuring
Expense(a)
|
|
Investment
Expense(g)
|
|
Ongoing
Business
Segment
Operating
Profit
(Loss)
|
North
America
|
$
|
285
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
285
|
|
|
Latin
America
|
87
|
|
|
—
|
|
|
—
|
|
|
|
87
|
|
|
EMEA
|
2
|
|
|
—
|
|
|
—
|
|
|
|
2
|
|
|
Asia
|
4
|
|
|
—
|
|
|
—
|
|
|
|
4
|
|
|
Other/Eliminations
|
(87)
|
|
|
34
|
|
|
5
|
|
|
|
(48)
|
|
|
Total Whirlpool
Corporation
|
$
|
291
|
|
|
$
|
34
|
|
|
$
|
5
|
|
|
$
|
330
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Footnotes:
a. During the second quarters of 2015 and 2014, we
recorded restructuring charges of $58
million and $34 million,
respectively. The earnings per diluted share impacts are calculated
based on income tax impacts of $14
million and $8 million,
respectively.
b. During the second quarter of 2015, we recognized
acquisition related transition costs of $21
million associated with 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 $5 million.
c. During the second quarter of 2015, the company
recognized expenses of $3 million
related to a Canadian pension settlement. The earnings per diluted
share impact is calculated based on an income tax impact of
$1 million.
d. During the second quarter of 2015, we recognized a
gain related to a business investment of $65
million. The earnings per diluted share impact is calculated
based on an income tax impact of $16
million.
e. During the second quarters of 2015 and 2014, we
recognized expenses of approximately $3
million and $1 million,
respectively, related to antitrust resolutions. The earnings per
diluted share impacts are calculated based on income tax impacts of
$1 million and $0 million, respectively.
f. During the second 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 approximately 24%.
g. During the second quarter of 2014 we recognized an
investment expense of $13 million
related to the pending acquisition of a majority interest in
Hefei Sanyo and the pending
acquisition of Indesit. 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 six-month 2015
and 2014 and projected 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)
|
2015
|
2014
|
|
2015
Outlook
|
Cash Provided by
(Used in) Operating Activities
|
$(397)
|
$(368)
|
|
$1,450
|
-
|
$1,500
|
Capital expenditures,
proceeds from sale of assets/businesses and change in restricted
cash*
|
(222)
|
(254)
|
|
(750)
|
-
|
(800)
|
Free Cash
Flow
|
$(619)
|
$(622)
|
|
~$700
|
|
|
|
|
|
|
|
*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