On October 25, 2023, Whirlpool Corp (WHR, Financial) announced its third-quarter financial results for 2023. The company reported a net sales growth of approximately 3%, driven by strong replacement and builder demand in North America. The GAAP net earnings margin was 1.7% (-130bps YoY), and the ongoing EBIT margin was 6.5% (+100bps YoY), driven by cost reduction actions.
Financial Highlights
Whirlpool Corp (WHR, Financial) reported GAAP and ongoing earnings per diluted share of $1.53 and $5.45, respectively. The company's cost reduction actions delivered approximately $300 million of year-over-year benefit in the quarter, and it is on track to deliver over $800 million full-year benefit. Whirlpool Corp (WHR) is expecting to return approximately $400 million of dividends to shareholders in 2023.
Europe Transaction Progress
The Europe transaction has been approved by the European Commission, Germany, Austria, and China. However, the U.K’s Competition and Markets Authority referred the transaction to phase two. The company expects to close the transaction by April 2024. This transaction is expected to unlock significant value creation, with an expected 150 basis points margin expansion and approximately $250 million annual increased free cash flow post-closing.
Revised Full-Year Earnings
Whirlpool Corp (WHR, Financial) revised its full-year GAAP and ongoing earnings per diluted share to approximately $9.00 and approximately $16.00, respectively. The company expects cash provided by operating activities of $1.1 billion and free cash flow of approximately $500 million.
CEO Commentary
Marc Bitzer, chairman and chief executive officer of Whirlpool Corporation, commented on the company's performance. He said,
We continue to deliver on our operational priorities with a 100 basis point year-over-year ongoing margin expansion and over a point of share gains in North America."
Financial Tables Summary
In Q3 2023, Whirlpool Corp (WHR, Financial) reported net sales of $4,926 million, a 3.0% increase from Q3 2022. GAAP net earnings available to Whirlpool was $83 million, a decrease of 42.0% from Q3 2022. Ongoing EBIT was $322 million, a 21.5% increase from Q3 2022. The company's free cash flow stood at $(660) million.
Regional Review
In North America, net sales increased by 3.6% YoY, driven by share gains and the addition of InSinkErator. In Europe, Middle East, and Africa, net sales declined by 4.4% YoY, impacted by continued demand weakness in Europe.
Outlook for 2023
Whirlpool Corp (WHR, Financial) reaffirmed its full-year 2023 net sales of approximately $19.4 billion. The company updated its full-year 2023 earnings guidance, including full-year GAAP and ongoing earnings per diluted share of approximately $9.00 and approximately $16.00, respectively.
Explore the complete 8-K earnings release (here) from Whirlpool Corp for further details.
