Email Whirlpool (WHR 130.05, -20.66, -13.71%) reported second quarter earnings of $3.20/share, excluding
non-recurring items, which came in well below expectations. On the top line,
revenues fell 3.9% year/year to $5.14 bln, which also came in below
expectations.
Second-quarter ongoing EBIT was $343 mln, or 6.7% of sales,
compared to $350 mln, or 6.5% of sales, in the same prior-year period.
"We are pleased to deliver margin expansion
in a very challenging
cost environment, driven by strong North America margins and significant global
price/mix improvement during the second quarter," said Marc Bitzer, chief
executive officer of Whirlpool Corporation. "Despite these positives, our
performance in EMEA was below expectations. As a result, we are taking strong
actions to improve our operational execution, and remain confident that we will
deliver value for our shareholders in the coming quarters."
Moving over to its
regional breakdown:
North America- Whirlpool North America reported second-quarter net sales of
of
$2.8 bln, compared to $2.8 bln in the same prior-year period. Excluding the
impact of currency, sales decreased 2.2%.
- The North America region reported strong earnings before interest and taxes (EBIT) margin of 11.9% despite temporary U.S. industry weakness and significant cost inflation.
EMEA- Whirlpool Europe, Middle East and Africa reported second-quarter net sales of $1.1 bln, compared to $1.2 bln in the same prior-year period. Excluding the impact of currency, sales decreased 12.3%.
- Following weak EMEA performance, the company is taking strong actions to restore profitability in the second half of 2018.
Latin America- Whirlpool Latin America reported
second-quarter net sales of $852 mln, compared to $986 mln in the same prior-year
period. Excluding the impact of currency, sales decreased 11.4%.
Asia- Whirlpool Asia reported second-quarter net sales of
$428 mln, compared to $373 mln in the same prior-year period. Excluding the
impact of currency, sales increased 14.5%.
Looking forward, the company expects to see fiscal year 2019
in the range of $14.20-14.80 as favorable product price/mix and share
repurchases are expected to be more than offset by lower global revenue growth,
increased expectations for global cost inflation, and weaker than expected
performance in the EMEA region.
Ultimately, this guidance falls below current expectations, contributing
to the weight on shares this morning.
In current trade, shares of WHR are down 13.7%.
