Whirlpool Chairman/CEO Marc Bitzer is looking ahead at the remainder of 2023 with great confidence. Bitzer told Wall Street analysts in his quarterly conference call today that Whirlpool has emerged from the pandemic business environment strong and ready to deliver good results for shareholders going forward.
“We did what we told you we would do,” said Bitzer. He credited consistent execution of the business plan that Whirlpool leaders laid out, and added, “We didn’t get a lot of help from the marketplace.” However, he said, that may be changing as the housing market recovers.
The company delivered slightly higher net sales in the 2nd quarter vs the 1at quarter of 2023—not unexpected. However, Bitzer focused on improved profit margins and cited a seven percent reduction in salaried workforce costs as a significant contribution to the improving picture.
He said the major appliance marketplace is slowly improving and is essentially back to ‘normal pre-pandemic’ performance.
Bitzer and Executive Vice President/Chief Financial Officer Jim Peters agreed that continued improvement in Whirlpool’s sales and profits will be driven by the improving US and North American housing market.
Peters said, “We are very optimistic!” He cited increased new housing starts and pointed out that Whirlpool brands are the number one choice of home builders. “A new home usually includes five new major appliances,” according to Peters. And Whirlpool is a major supplier to eight of the top ten national home building firms in the US.
Peters said he is confident Whirlpool will deliver $16 to $18 earnings per share in 2023, $800 million in free cash flow and an EBIT number of 7.25 %. All are key measures of corporate performance that Wall Street watchers keep a close eye on. And those numbers are in line with previous ‘guidance’ from Peters and Bitzer in earlier statements, underlining their confidence and optimism about the remainder of 2023.
Bitzer took time to focus on acquisition of the ‘InSinkErator’ brand and its integration into the Whirlpool family of brands. Bitzer said he’s “very pleased” with InSinkErator and that profit margins on its home disposal products are a healthy 20 % or more. InSinkErator’s sales are largely driven by new home construction and major remodeling. Bitzer said both are still on the upswing following the pandemic. Coupled with the introduction of a ‘next generation’ InSinkErator model, Bitzer sees blue skies ahead for the newly acquired brand.
Summarizing for business writers on the conference call, Bitzer repeated that he believes Whirlpool can expand market-share and improve profit margins in the foreseeable future. “We can do both,” he said. “The housing momentum is starting to build, and our cost management strategies have been effective.”
You can access Whirlpool’s recorded quarterly conference calls and accompanying presentations at their corporate website. www.WhirlpoolCorporation.com
