Whirlpool Corporation Reports Third-Quarter 2012 R Whirlpool Corporation Reports Third-Quarter 2012 Results
Raising Full-Year Ongoing Business EPS Guidance
Ongoing Business Operating Profit Improves 140 Percent During the Quarter; GAAP Operating Profit Improves 60 Percent
Continued Margin Expansion With Revenue Up 5 percent Excluding Currency and Tax Credits
BENTON HARBOR, Mich., Oct. 23, 2012 /PRNewswire/ -- Whirlpool Corporation (NYSE: WHR) announced today third-quarter GAAP net earnings of $74 million, or $0.94 per diluted share, compared to net earnings of $177 million, or $2.27 per diluted share reported during the same period last year. Prior-year GAAP earnings included tax credits of $2.35 per share. On an adjusted basis, diluted earnings per share(1) improved significantly to $1.80 compared to $0.29 in the prior year driven by continued favorable product price and mix and the benefit of cost and capacity-reduction initiatives.
Sales in the quarter were $4.5 billion, compared to $4.6 billion in 2011. Excluding the impact of both foreign currency and lower Brazilian (BEFIEX) tax credits, sales increased approximately 5 percent driven by strong product price and mix.
"We have delivered three consecutive quarters of year-over-year operating margin improvement this year driven by the actions we outlined last October," said Jeff M. Fettig, chairman and chief executive officer of Whirlpool Corporation. "Our ongoing business performance should continue to improve due to our strong cadence of new product innovations, the benefit of our cost savings programs and positive trends in U.S. housing."
Third-quarter GAAP operating profit totaled $214 million compared with $136 million in the prior year primarily driven by positive product price and mix, partially offset by reduced monetization of Brazilian (BEFIEX) tax credits and higher material costs. On an adjusted basis, third-quarter operating profit(2) totaled $263 million, approximately 6 percent of sales, and was up significantly from the $110 million, or approximately 2 percent of sales, reported in the prior year. Continued improvement in product price and mix and cost and capacity-reduction initiatives positively impacted results during the quarter.
During the three months ended September 30, 2012, the company reported cash flow used in operating activities of $(161) million compared to $(342) million in the prior-year period. Current year results include a $275 million non-recurring settlement for the Brazilian collection dispute and $164 million in U.S. pension contributions.
OUTLOOK
Whirlpool Corporation is increasing its full-year ongoing business operations diluted earnings per share(1) guidance to $6.90 to $7.10 compared to the previous range of $6.50 to $7.00. The company maintains its full-year GAAP diluted earnings per share guidance of $5.00 to $5.50. This assumes a full-year effective tax rate of 25 percent.
https://investors.whirlpoolcorp.com/releasedetail.cfm?ReleaseID=715280
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