Whirlpool Corporation, the leading kitchen and laundry appliance company in the world, today reported financial results for the first quarter of 2021.
“Our Q1 results successfully demonstrate our agility and resilience in dealing with component shortages and inflationary pressure,” said Marc Bitzer, chairman and chief executive officer of Whirlpool Corporation. “Sustained strong consumer demand and our recent cost-based pricing actions give us confidence to significantly raise our full-year guidance.” |
MARC BITZER |
KEY RESULTS
First-Quarter Results |
2021 |
2020 As Adjusted(5) |
Change |
|
Net sales ($M) |
$5,358 |
$4,325 |
$1,033 |
23.9% |
Net sales excluding currency ($M) |
5,370 |
4,325 |
1,045 |
24.2% |
GAAP net earnings available to Whirlpool ($M) |
433 |
154 |
279 |
181.2% |
Ongoing EBIT(2) ($M) |
664 |
269 |
395 |
146.8% |
GAAP earnings per diluted share |
$6.81 |
$2.45 |
$4.36 |
178.0% |
Ongoing earnings per diluted share(1) |
$7.20 |
$2.86 |
$4.34 |
151.7% |
CASH FLOW
Full-Year Cash Flow |
2021 YTD |
2020 YTD As Adjusted(5) |
Change |
Cash provided by (used in) operating activities ($M) |
$182 |
$(814) |
$996 |
Free cash flow(4) ($M) |
$132 |
$(870) |
$1,002 |
QUARTERLY HIGHLIGHTS
“We generated positive cash flow in the quarter, driven by strong net earnings and disciplined working capital management,” said Jim Peters, chief financial officer of Whirlpool Corporation. “We are pleased that we are expanding our share repurchase authorization by $2 billion and increasing our dividend for the ninth consecutive year, demonstrating our continued commitment to returning capital to shareholders.” |
JIM PETERS |
REGIONAL REVIEW
North America |
Q1 2021 |
Q1 2020 As Adjusted(5) |
Change |
Change excluding currency impact |
Net sales ($M) |
$3,044 |
$2,540 |
19.8% |
19.3% |
EBIT(3) ($M) |
$607 |
$306 |
98.4% |
– |
Europe, Middle East and Africa |
Q1 2021 |
Q1 2020 |
Change |
Change excluding currency impact |
Net sales ($M) |
$1,171 |
$879 |
33.2% |
25.0% |
EBIT(3) ($M) |
$21 |
$(15) |
nm |
– |
Latin America |
Q1 2021 |
Q1 2020 |
Change |
Change excluding currency impact |
Net sales ($M) |
$732 |
$618 |
18.4% |
35.4% |
EBIT(3) ($M) |
$62 |
$31 |
100.0% |
– |
Asia |
Q1 2021 |
Q1 2020 |
Change |
Change excluding currency impact |
Net sales ($M) |
$411 |
$288 |
42.7% |
39.6% |
EBIT(3) ($M) |
$21 |
$(16) |
nm |
– |
FULL-YEAR 2021 OUTLOOK(6)
• |
Increased full-year 2021 net sales growth to 13 percent from ~6 percent growth (the impact of currency on net sales for future periods is not included) |
• |
Increased GAAP earnings per diluted share to $23.10 to $24.10 from $17.80 to $18.80 |
• |
Increased ongoing earnings per diluted share(1) to $22.50 to $23.50 from $19.00 to $20.00 |
• |
Increased cash provided by operating activities to $1.70 billion from $1.55 billion |
• |
Increased free cash flow(4) to ~$1.25 billion from $1 billion or more |
• |
GAAP and adjusted tax rate (non-GAAP) is unchanged at 24 to 26 percent |
(1) |
A reconciliation of ongoing earnings per diluted share, a non-GAAP financial measure, to reported net earnings per diluted share available to Whirlpool and other important information, appears below. |
(2) |
A reconciliation of earnings before interest and taxes (EBIT) and ongoing EBIT, non-GAAP financial measures, to reported net earnings available to Whirlpool, and a reconciliation of EBIT margin and ongoing EBIT margin, non-GAAP financial measures, to net earnings margin and other important information, appears below. |
(3) |
Segment EBIT represents our consolidated EBIT broken down by the Company’s reportable segments and are metrics used by the chief operating decision maker in accordance with ASC 280. Consolidated EBIT also includes corporate “Other/Eliminations” of $(67) million and $(42) million for the first quarters of 2021 and 2020, respectively. |
(4) |
A reconciliation of free cash flow, a non-GAAP financial measure, to cash provided by (used in) operating activities and other important information, appears below. |
(5) |
As adjusted reporting – effective January 1, 2021, the Company changed its accounting principle for inventory valuation for inventories located in the U.S. from a last-in, first-out (“LIFO”) basis to a first-in, first-out (“FIFO”) basis. All prior periods presented have been retrospectively adjusted to apply the effects of the change. The information in the tables herein have been updated to reflect the retrospective accounting change. For more information see Notes 1 and 4 to Whirlpool’s to-be-filed Quarterly Report on Form 10-Q for the quarter ended March 31, 2021. |
(6) |
Assumes the partial tender offer by Galanz for majority ownership of the Whirlpool China business is successfully closed in Q2 2021. |
ABOUT WHIRLPOOL CORPORATION
Whirlpool Corporation is the leading kitchen and laundry appliance company in the world, with approximately $19 billion in annual sales, 78,000 employees and 57 manufacturing and technology research centers in 2020. The company markets Whirlpool, KitchenAid, Maytag, Consul, Brastemp, Amana, Bauknecht, JennAir, Indesit and other major brand names in nearly every country throughout the world. Additional information about the company can be found at whirlpoolcorp.com.