#USA #KitchenAid #Benton Harbor #Maytag #Whirlpool Corporation

Whirlpool Corporation Reports Financial Results for 2024

Whirlpool Corporation (NYSE: WHR) has unveiled its financial results for the fourth quarter and the full year of 2024, showcasing a significant decline in net sales yet highlighting a resilient operational outlook for 2025. The company's fourth-quarter net sales dropped by 18.7%, largely attributable to the divestiture of its European operations, while organic net sales revealed modest growth of 1.9% propelled by strong demand in small domestic appliances.

Financial Performance and Projections

In the detailed report, Whirlpool reported fourth-quarter sales reaching $4.136 billion, a steep drop from $5.088 billion the previous year. The company attributed this decline to the strategic decision to divest its major domestic appliance business in Europe. Despite this setback, Whirlpool's organic sales growth reflects the ongoing demand for its product offerings in other regions, signaling potential recovery dynamics in the consumer appliance market.

The management, led by CEO Marc Bitzer, expressed satisfaction with their operational progress, noting that they met their cost reduction target of $300 million in 2024. Going forward, the company aims to cut an additional $200 million in costs in 2025 while preparing for a potential upturn in the U.S. housing market, which is expected to drive demand for appliances.

As part of its forward guidance, Whirlpool anticipates earnings per diluted share of approximately $8.75 for 2025, alongside ongoing earnings per diluted share estimated at around $10.00. The projected tax rate is between 20% to 25%, with further expectations of generating $1 billion from operating activities and between $500 million to $600 million in free cash flow. Additionally, Whirlpool plans to decrease its stake in Whirlpool of India Ltd. to about 20% through a market sale and intends to reduce debt by approximately $700 million in 2025.

Operational Insights

The earnings report highlights segments where Whirlpool is experiencing significant changes and challenges.

• - North America reported net sales of $2.595 billion, a slight decline of 1.4% year-over-year. Despite challenges related to inventory reductions, the EBIT margin dipped slightly to 6.7%.
• - Latin America saw net sales decrease by 4.0% to $920 million, yet delivered a robust EBIT growth of 40%, demonstrating efficient cost management and market adaptation.
• - In Asia, a 7.6% increase in net sales translated to an EBIT margin improvement, further indicating share gains in a growing market.
• - The Global Small Domestic Appliances segment experienced a 5.7% increase in sales, attributed to innovative product launches and direct-to-consumer sales strategies, although marketing investments slightly impacted profits.

Strategic Changes Ahead

Whirlpool has positioned itself to navigate a challenging landscape, focusing on operational efficiency and strategic divestitures as means to enhance shareholder value. The leadership noted that the successful closure of the European transaction and the anticipated cash flows from the India transaction will be pivotal as they strive to strengthen their financial footing.

Commitment to Investors

Whirlpool's commitment to maximizing shareholder value and improving its balance sheet remains firm. The ongoing transformation of its business portfolio, alongside insightful cost management, serves as the cornerstone of its strategy in setting forth positive future prospects. The guidance for growth in 2025 underlines a confidence in the company’s ability to rebound stronger in the appliance market.

For more detailed information about Whirlpool Corporation, please visit WhirlpoolCorp.com.

• ---