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Whirlpool (WHR) Q3 Earnings call transcript Oct 24, 2024

Daily EarningsMonday, Oct 28, 2024 8:25 pm ET

1min read

WHR --

In Whirlpool Corporation's third quarter 2024 earnings call, executives discussed the company's financial performance, operational highlights, and strategic priorities. Despite the challenging macroeconomic environment, Whirlpool reported sequential EBIT margin expansion in the third quarter, driven by pricing actions and cost takeout initiatives. The company is confident in its positioning for the anticipated U.S. housing market recovery.

Financial Performance and Strategic Priorities

Whirlpool's third quarter results showcased ongoing EPS of $3.43, supported by pricing actions, cost takeout, and a more favorable adjusted effective tax rate. The company's strong working capital management improved inventory, generating approximately $130 million of cash in the third quarter. Whirlpool expects to deliver approximately $500 million free cash flow in 2024, with a focus on debt reduction and shareholder returns.

Operational Highlights

In North America, Whirlpool achieved a 100 basis points sequential margin expansion, driven by pricing actions and cost takeout programs. The company's new product launches in the laundry category, such as the FreshFlow Vent System and Pet Pro Option, have been successful in addressing consumer needs and driving growth. Whirlpool's MDA Latin America business reported a 9% year-over-year net sales growth, while its MDA Asia business experienced double-digit net sales growth.

Market Conditions and Outlook

Whirlpool faces a challenging macroeconomic environment in the U.S., with low consumer confidence and uncertainty surrounding the housing market recovery. The company is well-positioned to capitalize on the eventual recovery, as the underlying housing fundamentals remain strong. Whirlpool's focus on margin expansion and operational priorities, such as pricing actions and cost takeout, are expected to contribute to strong performance in the fourth quarter and beyond.

New Product Innovations

Whirlpool's commitment to product innovation is evident in its recent launches, including the KitchenAid 4-door refrigerator and new additions to the KitchenAid Go Cordless System. These innovations demonstrate the company's ability to meet consumer needs and expectations, setting the stage for future growth.

Conclusion

Whirlpool Corporation's third quarter earnings call highlighted the company's resilience in a challenging macroeconomic environment, driven by operational efficiencies, strategic pricing actions, and a focus on product innovation. With a strong positioning for the anticipated U.S. housing market recovery and a commitment to delivering shareholder value, Whirlpool is well-positioned for continued success in the coming quarters.

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