Whirlpool Corp · Q4 2019 earnings

Briefing

Reported strong results driven by price/mix and focused cost discipline.

Whirlpool Corporation reported strong fourth-quarter and full-year 2019 results, exceeding guidance expectations despite a challenging macro-environment. All regions were profitable during Q4, with North America demonstrating strong EBIT margins. The company provided a solid outlook for 2020.

• Very strong Q4 GAAP net earnings margin (5.4%, up 240 basis points) and ongoing (non-GAAP) EBIT margin (7.2%, up 100 basis points), slightly ahead of our operational guidance.
• All regions profitable during Q4, with the North America region demonstrating sustained strong EBIT margins of approximately 13%.
• GAAP net earnings of $288 million (5.4 percent of sales), or $4.52 per diluted share, compared to $170 million (3.0 percent of sales), or $2.64 per diluted share, reported for the same prior-year period.
• Net sales were $5.4 billion, compared to $5.7 billion in the same prior-year period, a decrease of 4.9 percent. Organic net sales (non-GAAP) increased 1.2 percent.

Headline financials

Revenue & EPS history

Whirlpool provided a solid outlook for 2020, forecasting earnings per diluted share of $14.80 to $15.80 on a GAAP basis and $16.00 to $17.00 on an ongoing basis. Cash provided by operating activities in 2020 of $1.3 billion to $1.4 billion and free cash flow of approximately $800 million to $900 million.