Tag Archives: The Whirlpool Corporation

Whirlpool Europe update

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In the conference call with analysts, the CEO does not reveal the names of the possible buyers of Whirlpool Emea and fails to stop the collapse of the stock after the disappointing results announced the previous day.

The things are clear to the 15,000 Whirlpool employees in Europe (especially Italy and Poland), Africa and the Middle East, to the related industries of the 10 factories (5 of which in Italy) and to the trade, in short, to those who try to understand what the destiny of Whirlpool EMEA. The little information shared by Whirlpool Corporation in presenting the data for the third quarter allows us to establish some fixed points 10 financial and industrial groups have proposed to acquire (it is not known whether in part or in whole) the assets of Whirlpool Emea.
Two of these groups, both industrial, remained ‘in the running’ and their offers are being evaluated.


The choice between one of the two offers and an internal solution will be submitted to a meeting of the Board of Whirlpool Corporation, probably before the end of the year, based on an analysis of the various market segments in which Whirlpool Emea operates.The markets in which the group intends to invest both to produce and to sell are other: obviously the USA and Canada, Brazil and Mexico and India.

Globally, Whirlpool Corp closed a bad third quarter disappointing analysts’ expectations. Whirlpool’s sales fell by 12.8%, in the third quarter by 7% net of the strengthening of the dollar. During the year, Whirlpool transferred $ 2.6 billion in dividends and buy backs to its shareholders

Whirlpool: two big names in the running for EMEA activities

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The ‘strategic review’ is almost finished but the press release is extremely laconic.

In the third quarter, Europe is the only area with negative margins and it is the one with the most significant decline: -28% in dollars.Whirlpool Corporation Announces Q3 Results Impacted by Short Term Macro Headwinds
And Provides Update on Portfolio Transformation; Business Well Positioned for Future
• Portfolio transformation advances with announced acquisition of InSinkErator and the completed
divestiture of the Whirlpool Russia business
• Strategic review of EMEA nears conclusion with two potential strategic investors in final evaluation
stage
• GAAP net earnings margin of 3.0% and ongoing (non-GAAP) EBIT margin(2) of 5.5%, despite double digit
industry declines across most major marketplaces and continued elevated cost inflation
• In anticipation of a temporary soft demand environment, reduced production volumes by 35% in the
third quarter
• Delivered GAAP and ongoing (non-GAAP) earnings per diluted share(1)of $2.60 and $4.49, respectively
• Revised full-year 2022 guidance to ~$5.00 earnings per diluted share on a GAAP basis and ~$19.00 on
an ongoing basis(2)
, cash provided by operating activities of $1.5 billion and free cash flow(4) of $950
million
• Structurally improved Whirlpool well positioned to navigate current environment and benefit from
long-term demand tailwinds


Whirlpool Corporation (NYSE: WHR), committed to being
the best global kitchen and laundry company, in constant pursuit of improving life at home, today reported
third quarter 2022 financial results.
”
While our Q3 results were impacted by ongoing
macroeconomic headwinds and continued elevated
levels of inflation that resulted in slowing demand,
we remain on track to deliver the second-best year in
our 111-year history in 2022,” said Marc Bitzer,
chairman and chief executive officer of Whirlpool
Corporation. “Looking ahead, we see these
challenges persisting into the first half of 2023,
however, we believe we have the right actions in
place that will allow us to navigate through the
current environment while advancing our portfolio
transformation and delivering strong shareholder
returns.”

Friday CEO Marc Bitzer’s Conference call with analysts should provide some more details. For now it is known that the ‘strategic review’ of European activities involved costs of 25 million dollars, probably in fees for investment banks and consultants

Whirlpool to announce fate of Europe business

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How to participate on Friday in the event in which the multinational will reveal the fate of its European activities.

Whirlpool Corporation yesterday announced the quarterly dividend that will be paid to shareholders in December: $ 1.75. This is 25% more than the dividend recognized in the third quarter of 2021. The return for shareholders is around 4%. It is therefore possible to anticipate a comforting trend of the group’s activities.

The fate of the EMEA business will be revealed on Thursday night
Tomorrow at 4 pm New York time (10 pm Italian time) the company will communicate the financial data of the third quarter and probably, as it has undertaken to do in recent months, will share its decisions regarding the fate of its activities in Europe (indeed in Emea).
The next day, at 8 am New York time, and then at 2 pm Italian time, the company’s top management will participate in a live meeting with analysts. It is possible to listen to it through the Investor section of the website http://www.whirlpoolcorp.com and by downloading the appropriate application

Whirlpool Reports Q2 Results,

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GAAP net loss margin of (7.3)% and GAAP loss per diluted share of $(6.62) impacted by non-recurring charges of $747 million, largely driven by loss from sale of Russia business and EMEA asset impairment
Delivered ongoing (non-GAAP) EBIT margin(2) of 9.0% and ongoing (non-GAAP) earnings per diluted share(1) of $5.97, despite elevated cost inflation and demand slowdown
North America region delivered strong results with EBIT(3) margin of 14.1% led by previously executed cost-based price increases offset by lower volumes and elevated cost inflation
Returned ~$400 million in repurchases and dividends in the quarter, on track with commitment to return over $1.5 billion to shareholders in the year
Progressed EMEA strategic review and global portfolio transformation with the agreement to sell the Whirlpool Russia business
Revised full-year 2022 guidance to $9.50 to $11.50 earnings per diluted share on a GAAP basis and $22.00 to $24.00 on an ongoing basis(2), cash provided by operating activities of $1.85 billion and free cash flow(4) of $1.25 billion FULL-YEAR 2022 OUTLOOK

Expect full-year 2022 revenues of approximately $20.7 billion (down approximately 6 percent)
Reduced earnings per diluted share from $24.00 to $26.00 to $9.50 to $11.50 on a GAAP basis and $22.00 to $24.00 on an ongoing basis(2)
Reduced cash provided by operating activities to $1.85 billion from $1.95 billion; free cash flow(4) of $1.25 billion remains unchanged
Updated GAAP and adjusted tax rate (non-GAAP) from 24 to 26 percent to a GAAP tax rate of 34 to 36 percent and an adjusted tax rate (non-GAAP) of 21 to 23 percent

Global small domestic appliance (SDA) market is forecast to reach $581.6bn (€508.5bn) by 2030

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According to a new report by by Research and Markets, the global small domestic appliance (SDA) market is forecast to reach $581.6bn (€508.5bn) by 2030, registering a CAGR of 13.0% from 2021 to 2030.

The main drivers for growth include growing demand from an increasingly urbanised population, increased personal disposable income, and affordable credit facilities. Another significant factor in the upward trend is a surge in innovation in home appliances, encouraging consumers to replace their old models with new “smarter” versions.

According to Research and Markets’ report, the COVID-19 pandemic has also positively impacted the overall growth of the small domestic appliances market.

It says that during the lockdown period, people were choosing to invest in their homes, including the replacement of their old appliances with smart and advanced models.

In addition, due to an increased focus on health, small domestic appliances that promote greater levels of hygiene also saw an uptick.

Europe gained significant share in the global small domestic appliances market in 2020 and is expected to sustain its share during the forecast period, the report said.

A considerable growth rate is anticipated for new, advanced and smart residential and commercial appliances for the residential and commercial segment. In addition, there has been a huge increase in demand from the major countries in Europe such as France, Spain, the UK and Russia.

Increasing preference for a hassle-free lifestyle and growing industrial application of air purifiers and vacuum cleaners
are all supporting the growth of small domestic appliances in the region, the report stated. Product innovation and quick adoption for the technologically advanced appliances are further adding to the growth of the small domestic appliances market in Europe.

At the same time, high prices and high popularity of both residential and commercial small domestic appliance brands has led to the advent of counterfeit brands, the report said. These are generally prevalent in the developing economies where customers are highly price-sensitive, Research and Markets commented. This factor is said to restrict the sale of the existing original small domestic appliances brands in these regions.

The major players operating in the market, according to Research and Markets, include Koninklijke Philips N.V., The Whirlpool Corporation, LG Electronics Inc., Bosch, Electrolux AB, Panasonic Corporation, Spectrum Brands Holdings, Inc., The Middleby Corporation, Morphy Richards, and Samsung Electronics Co. Ltd.