Whirlpool Q2 2022 Earnings Report
Key Takeaways
Whirlpool's Q2 2022 results were impacted by non-recurring charges, including a loss from the sale of its Russia business and EMEA asset impairment, leading to a GAAP net loss. However, the company delivered ongoing EBIT margin of 9.0% and ongoing earnings per diluted share of $5.97, driven by cost-based price increases, particularly in North America. Whirlpool returned approximately $400 million to shareholders through repurchases and dividends and is on track to return over $1.5 billion in the year.
GAAP net loss margin of (7.3)% and GAAP loss per diluted share of $(6.62) were impacted by non-recurring charges of $747 million.
Ongoing EBIT margin of 9.0% and ongoing earnings per diluted share of $5.97 were achieved despite cost inflation and demand slowdown.
North America region delivered strong results with an EBIT margin of 14.1%, driven by cost-based price increases.
Approximately $400 million was returned to shareholders through repurchases and dividends, aligned with the commitment to return over $1.5 billion in 2022.
Whirlpool
Whirlpool
Whirlpool Revenue by Segment
Forward Guidance
Whirlpool revised its full-year 2022 guidance, expecting revenues of approximately $20.7 billion. Earnings per diluted share are projected to be $9.50 to $11.50 on a GAAP basis and $22.00 to $24.00 on an ongoing basis. The company anticipates cash provided by operating activities of $1.85 billion and free cash flow of $1.25 billion.
Positive Outlook
- Full-year 2022 revenues are expected to be approximately $20.7 billion.
- Earnings per diluted share are projected to be $9.50 to $11.50 on a GAAP basis and $22.00 to $24.00 on an ongoing basis.
- Cash provided by operating activities is anticipated to be $1.85 billion.
- Free cash flow is expected to be $1.25 billion.
- Adjusted tax rate (non-GAAP) of 21 to 23 percent
Challenges Ahead
- Revenue expectation is down approximately 6 percent.
- Reduced earnings per diluted share from $24.00 to $26.00 to $9.50 to $11.50 on a GAAP basis.
- Reduced cash provided by operating activities to $1.85 billion from $1.95 billion.
- Updated GAAP tax rate from 24 to 26 percent to 34 to 36 percent.
- Ongoing measures exclude items that may not be indicative of, or are unrelated to, results from our ongoing operations
Revenue & Expenses
Visualization of income flow from segment revenue to net income