The following is a summary of the Whirlpool Corporation (WHR) Q1 2024 Earnings Call Transcript:
Financial Performance:
Whirlpool reported Q1 2024 net sales decline by about 3% and marked ongoing EBIT margin at 4.3%.
The free cash flow was negatively impacted by approximately $250 to $300 million due to non-recurring cash outflows related to the MDA Europe business.
The company declared a dividend of $1.75 per share in Q1, amounting to roughly $400 million of dividends for the year.
Despite challenges, Whirlpool held on to ongoing earnings per share of $1.78 and reaffirmed the full-year guidance of $13 to $15 ongoing earnings per share.
Business Progress:
Whirlpool completed EMEA transaction marking a significant step in transforming their portfolio into a higher-margin business.
Despite a complicated macro environment, significant cost reductions were made in Q1.
The company made progress in Latin American and Asian markets, selling a 24% stake in Whirlpool of India while retaining 51% ownership.
With continuous investment in new product development, they expect a strong product pipeline for 2024.
Aiming at organizational simplification, roughly 1,000 global salaried roles across two waves were eliminated, with benefits set to realize from Q2 onwards.
Whirlpool is expecting growth in U.S. market due to housing rebound and correlation between home and appliance sales, alongside positive strides in Small Domestic Appliance business and North America MDA segment.
Anticipating margin improvement due to the absence of the dilutive EMEA business, the company maintains its 2025 guidance.
The company plans to optimize promotional investments, offset inflation impacts through incremental cost actions and expects an industry stabilization later this year.
More details: Whirlpool IR
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