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Dec 31, 2022
Whirlpool Q4 2022 Earnings Report
Whirlpool's Q4 2022 earnings were impacted by a one-off supply chain disruption in North America, resulting in a GAAP net loss margin of (32.6)% and an ongoing (non-GAAP) EBIT margin of 3.5%.
Key Takeaways
Whirlpool Corporation reported a net sales decline of (15.3)% in Q4 2022, with organic net sales declining by (10.8)%. The results were impacted by a supply chain disruption in North America and a demand slowdown, which were partially offset by favorable price/mix. The company expects a benefit of $800 to $900 million in 2023 from cost takeout actions and easing raw material inflation.
Net sales decreased by (15.3)%, with organic net sales declining by (10.8)%, due to a supply disruption in North America and a demand slowdown, partially offset by favorable price/mix.
Strong cost actions are on track, delivering sequential quarterly net cost improvement.
The company adjusted its full-year effective GAAP and adjusted (non-GAAP) tax rate to approximately (22)% and 4%, respectively, in the quarter.
A one-off supply chain disruption significantly impacted revenue in North America; the company maintained recent sequential quarterly share gains.
Revenue by Segment
Forward Guidance
Whirlpool expects full-year 2023 revenues of approximately $19.4 billion and earnings per diluted share of $16.00 to $18.00 on a GAAP and ongoing basis. The company also anticipates cash provided by operating activities of approximately $1.4 billion and free cash flow of approximately $800 million.
Positive Outlook
- Full-year 2023 revenues of approximately $19.4 billion (down 1 to 2 percent compared to the prior year)
- Earnings per diluted share of $16.00 to $18.00 on a GAAP and ongoing basis
- Cash provided by operating activities of approximately $1.4 billion
- Free cash flow of approximately $800 million
- Expect $800 to $900 million benefit in 2023 from strong cost takeout actions and easing raw material inflation
Challenges Ahead
- Uncertain global economy and changes in economic conditions which affect demand for our products.
- The ongoing Russian invasion of Ukraine and related conflict and sanctions
- COVID-19 pandemic-related business disruptions and economic uncertainty
Revenue & Expenses
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Historical Earnings Impact
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Avg. Return Before/After Earnings
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