Q2 2024 Whirlpool Corp Earnings Call Transcript
Key Points
- Whirlpool Corp (WHR) demonstrated strong sequential global margin expansion in the second quarter, with a 100 basis point increase.
- The company's pricing actions in North America delivered as expected, improving sell-through trends and maintaining market share.
- Whirlpool Corp (WHR)'s SDA global business saw strong top-line growth and margin expansion, driven by new product launches and direct-to-consumer growth.
- The company successfully completed its organizational simplification, putting it on track to achieve its full-year cost takeout guide of $300 million to $400 million.
- Whirlpool Corp (WHR) generated $275 million in cash from working capital and inventory management, with an expected free cash flow of approximately $500 million for the full year.
- Whirlpool Corp (WHR) revised its ongoing EBIT margin guidance to 6% from 6.8%, citing continued discretionary demand pressure from a soft housing market.
- The company experienced a 6% year-over-year decline in net sales for its MDA North America business, driven by unfavorable price mix.
- Foreign currency negatively impacted margins due to the weakening of the Brazilian real and the Canadian dollar relative to the US dollar.
- Whirlpool Corp (WHR) noted that the challenging macro environment in the US, including elevated mortgage rates, has led to continued weakness in home sales and overall discretionary demand.
- The company expects to deliver on the lower end of its $300 million to $400 million cost savings range for 2024, indicating slower realization of incremental cost actions.
Good morning, and welcome to Whirlpool Corporation's second-quarter 2024 earnings call. Today's call is being recorded.
Joining me today are Marc Bitzer, our Chairman and Chief Executive Officer; and Jim Peters, our Chief Financial and Administrative Officer. Our remarks today track with a presentation available on the Investors section of our website at whirlpoolcorp.com.
Before we begin, I wanted to remind you that as we conduct this call, we will be making forward-looking statements to assist you in better understanding Whirlpool Corporation's future expectations. Our actual results could differ materially from these statements due to many factors discussed in our latest 10-K, 10-Q, and other periodic reports.
We also want to remind you that today's presentation includes the non-GAAP measures outlined in further detail at the beginning of our earnings presentation. We believe these measures are important indicators of our operations as they exclude items that may not be indicative of results from our ongoing
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