Benton Harbor-based Whirlpool Corporation announced third quarter earnings Wednesday afternoon. Market reaction is pending but in after-hours trading, shares were trading slightly higher in the immediate aftermath of the company’s earnings release. Right before the market close, the company’s shares were trading at $99.28 per share, down $3.01.
According to the company’s earnings presentation, Earnings Per Share were $3.43, beating some analyst estimates. Net Sales for the quarter were approximately $4 billion, showing that performance in the third quarter of 2024 lagged the year prior by 18.9 percent. Year-to-date Free Cash Flow was reported off by $586 million and Free Cash Flow as a percentage of sales was off by 14.7 percent.
“In Q3, we continued to deliver sequential ongoing EBIT margin expansion despite the unfavorable macroeconomic environment we are experiencing in North America,” said CEO Marc Bitzer. “We remain well positioned to benefit from the eventual U.S. housing market recovery.”
The company statement indicated discretionary demand remains soft with weak replacement, but they expect margin progression to continue through 2024. The company’s presentation also noted they paid a $1.75 per share dividend to investors in Q3, and corporate executives reaffirmed full-year ongoing guidance.
The company highlighted the following in their earnings statement:
- Sequential margin expansion in Major Domestic Appliances (MDA) North America for the second consecutive quarter, driven by promotional pricing actions
- Q3 GAAP net earnings margin of 2.7% (Q2 5.5%); GAAP earnings per diluted share of $2.00; GAAP tax rate of 25%
- Ongoing (non-GAAP) EBIT margin(1) of 5.8% (Q2 5.3%); ongoing earnings per diluted share of $3.43 supported by favorable adjusted (non-GAAP) tax rate of (32)%
- Revising full-year GAAP earnings per diluted share to approximately $0.50, impacted by the updated GAAP tax rate and non-cash losses related to the Europe transaction
- Reaffirming full-year ongoing earnings per diluted share of approximately $12.00, cash provided by operating activities of approximately $1.05 billion and free cash flow of approximately $500 million
In their closing summary, Whirlpool executives noted they have implemented actions leading to sequential margin expansion, globally and in North America — likely a reference to price adjustments and cost takeout actions including the series of significant job cuts and role eliminations the company executed earlier this year.
Further, the company noted Major Domestic Appliances in North America are well positioned for expected growth and further margin expansion, supported by interest rate moderation leading to future housing recovery, a strong product pipeline, and additional structural cost opportunities.
