BENTON HARBOR :– Whirlpool Corporation (NYSE: WHR), today reported second-quarter 2024 financial results.
“Our solid Q2 results and actions put us firmly on track towards expanding our margins sequentially throughout 2024,” said Marc Bitzer, “setting up our business well for the eventual recovery of the U.S. housing market.”
MARC BITZER, CHAIRMAN AND CHIEF EXECUTIVE OFFICER
|
Second-Quarter Results |
2024* |
2023 
|
Change |
|
Net sales ($M) |
$3,989 |
$4,792 |
(16.8) % |
|
Net sales excluding currency ($M) |
$4,026 |
$4,792 |
(16.0) % |
|
GAAP net earnings (loss) available to Whirlpool ($M) |
$219 |
$85 |
157.6 % |
|
Ongoing EBIT(1) ($M) |
$212 |
$352 |
(39.8) % |
|
GAAP earnings (loss) per diluted share |
$3.96 |
$1.55 |
155.5 % |
|
Ongoing earnings per diluted share(2) |
$2.39 |
$4.21 |
(43.2) % |
|
*Excludes net sales from our previously-owned MDA Europe business |
|||
|
Free Cash Flow |
2024 |
2023 |
Change |
|
Cash provided by (used in) operating activities ($M) |
$(485) |
$(370) |
$(115) |
|
Free cash flow(3) ($M) |
$(713) |
$(587) |
$(126) |
“We completed our organizational simplification actions in the second quarter, putting us on track to deliver our cost take out goal of $300–$400 million,” said Jim Peters. “With strong working capital management driving more than $250 million cash generation within the quarter, we remain confident in delivering our capital allocation priorities.”
JIM PETERS, CHIEF FINANCIAL AND ADMINISTRATIVE OFFICER
SEGMENT REVIEW
|
SEGMENT INFORMATION ($M) |
Q2 2024 |
Q2 2023 |
Change |
||
|
MDA North America |
Net Sales |
$2,567 |
$2,722 |
(5.7) % |
|
|
EBIT |
$163 |
$275 |
(40.7) % |
||
|
% of sales |
6.3 % |
10.1 % |
(3.8pts) |
||
|
MDA Latin America |
Net Sales |
$895 |
$804 |
11.3 % |
|
|
EBIT |
$52 |
$49 |
6.1 % |
||
|
% of sales |
5.8 % |
6.1 % |
(0.3pts) |
||
|
MDA Asia |
Net Sales |
$340 |
$284 |
19.7 % |
|
|
EBIT |
$21 |
$10 |
110.0 % |
||
|
% of sales |
6.2 % |
3.5 % |
2.7pts |
||
|
SDA Global |
Net Sales |
$187 |
$168 |
11.3 % |
|
|
EBIT |
$26 |
$21 |
23.8 % |
||
|
% of sales |
13.9 % |
12.5 % |
1.4pts |
||
|
MDA: Major Domestic Appliances; SDA: Small Domestic Appliances |
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MDA NORTH AMERICA
- Excluding currency, net sales decline of 5.6 percent year-over-year from unfavorable price/mix, which significantly improved throughout the quarter from promotional pricing actions
- EBIT margin(4) decreased compared to the same prior-year period, driven by unfavorable price/mix partially offset by cost take out actions
MDA LATIN AMERICA
- Excluding currency, net sales increase of 14.9 percent year-over-year, with strong share gains in the segment more than offsetting unfavorable price/mix
- EBIT margin(4) decreased compared to the same prior-year period, driven by unfavorable price/mix partially offset by fixed cost leverage and cost take out actions
MDA ASIA
- Excluding currency, net sales increase of 21.5 percent year-over-year, with increased volumes from share gains partially offset by unfavorable price/mix
- EBIT margin(4) increased compared to the same prior-year period, driven by cost take out actions and fixed cost leverage
SDA GLOBAL
- Excluding currency, net sales increase of 11.9 percent year-over-year, with growth from new product launches and direct to consumer business more than offsetting unfavorable price/mix
- EBIT margin(4) increased compared to the same prior-year period, driven by cost take out actions and volume growth
FULL-YEAR 2024 OUTLOOK
|
Guidance Summary |
2023 Reported |
2023 Like for |
2024 Guidance |
|
Net sales ($M) |
$19,455 |
~$16,900 |
~$16,900 |
|
Cash provided by operating activities ($M) |
$915 |
N/A |
~$1,050 |
|
Free cash flow ($M)(3) |
$366 |
N/A |
~$500 |
|
GAAP net earnings margin (%) |
2.5 % |
N/A |
~1.0% |
|
Ongoing EBIT margin (%)(1) |
6.1 % |
~6.9% |
~6.0% |
|
GAAP earnings per diluted share |
$8.72 |
N/A |
~$3.00 |
|
Ongoing earnings per diluted share(2) |
$16.16 |
N/A |
~$12.00 |
- Europe transaction closed April 1, 2024, as expected
- Reaffirm full-year 2024 net sales expectations of approximately $16.9 billion
- Full-year GAAP earnings per diluted share of approximately $3.00 impacted by non-cash charge related to the Europe transaction and organization simplification restructuring expense
- Adjusted full-year ongoing earnings per diluted share(2) to approximately $12.00, including $300–$400 million of cost actions
- Adjusted full-year cash provided by operating activities to approximately $1.05 billion and free cash flow(3) of approximately $500 million; includes approximately $250–$300 million of MDA Europe cash usage in 2024
- Expect full-year 2024 GAAP tax rate of approximately 25 percent and adjusted (non-GAAP) tax rate of approximately (8) percent
- Continue to expect to pay approximately $400 million of 2024 dividends (subject to board approval)
|
(1) |
A reconciliation of earnings before interest and taxes (EBIT) and ongoing EBIT, non-GAAP financial measures, to reported net earnings (loss) available to Whirlpool, and a reconciliation of EBIT margin and ongoing EBIT margin, non-GAAP financial measures, to net earnings (loss) margin and other important information, appears below. |
|
(2) |
A reconciliation of ongoing earnings per diluted share, a non-GAAP financial measure, to reported net earnings (loss) per diluted share available to Whirlpool 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) |
Segment EBIT represents our consolidated EBIT broken down by the Company’s reportable segments and are metrics used by the chief operating decision maker in accordance with ASC 280. Consolidated EBIT also includes corporate “Other/Eliminations” of $(150) million and $(79) million for the second quarters of 2024 and 2023, respectively. |
|
(5) |
Like-for-like refers to a comparison between the 2024 guidance and pro forma results for 2023, which exclude the second through fourth quarter resegmented results for the historical Europe major domestic appliances business (MDA Europe under new segment operating structure). This comparison uses a prior period baseline that is aligned to the ongoing business expectations for 2024, with the Europe transaction closed April 2024. The like-for-like GAAP net earnings margin and corresponding reconciliation cannot be provided without unreasonable effort or expense. Please see below for a reconciliation of ongoing EBIT for the full year to GAAP net earnings. |
