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Dec 31, 2023
Whirlpool Q4 2023 Earnings Report
Reported a net sales growth and margin expansion, driven by cost take out actions and share gains.
Key Takeaways
Whirlpool Corporation reported Q4 2023 results with net sales growth of approximately 3% and a GAAP net earnings margin of 9.7%. The company achieved approximately $350 million in cost take out during the quarter and expects further cost reductions in 2024.
Net sales increased by approximately 3% with 1 point of North America share gains year-over-year.
GAAP net earnings margin was 9.7%, compared to (32.6)% in the prior year period.
Ongoing EBIT margin was 5.2%, a 170bps increase year-over-year.
The company expects to close the Europe transaction in April 2024, which will unlock margin lift.
Whirlpool
Whirlpool
Whirlpool Revenue by Segment
Revenue by Segment
MDA North America Revenue
CapyFin.comMDA Latin America Revenue
CapyFin.comMDA Asia Revenue
CapyFin.com Forward Guidance
Whirlpool anticipates full-year 2024 net sales of approximately $16.9 billion and GAAP earnings per diluted share of $8.50 to $10.50. The company also expects cash provided by operating activities of $1.15 to $1.25 billion and free cash flow of $550 to $650 million.
Positive Outlook
- Full-year GAAP and ongoing earnings per diluted share of $8.50 to $10.50 and $13.00 to $15.00, respectively, including $300-$400 million of cost actions
- Cash provided by operating activities of $1.15 to $1.25 billion
- Free cash flow of approximately $550 to $650 million
- Expect to pay dividends of approximately $400 million in 2024
- Reduce debt by approximately $500 million
Challenges Ahead
- Full year guidance includes three months MDA Europe expected results (approximately $700 million of net sales and EBIT margin of approximately 1.5%)
- Expect full-year 2024 net sales of approximately $16.9 billion (approximately flat on a like-for-like basis; down approximately 13 percent compared to the prior year reported results)
- Includes approximately $200 to $300 million of MDA Europe cash usage in 2024
- GAAP tax rate and adjusted (non-GAAP) tax rate of approximately 24 percent and 0 percent, respectively
- Resegmenting the business to reflect transformed portfolio
Revenue & Expenses
Visualization of income flow from segment revenue to net income