"Strong operational execution delivered another year of record revenue and earnings" with a 4th quarter profit that more than doubled. That was the good news from Whirlpool Chairman & CEO Jeff Fettig this morning. Some analysts however, are looking beyond that performance to Whirlpool's outlook statement which forecast earnings for calendar 2016 to check in between $14.00 and $14.75 per share. Thomsen Reuters however says that analysts were expecting earnings, on average, of $14.42, calling the adjusted forecast "largely below estimates."
That concern was certainly not being reflected in early trading, however, as the company's stock quickly moved up by more than $6.00 by mid-morning trading.
The Benton Harbor-based appliance giant pegged fourth-quarter net earnings of $180-million, or $2.28 per diluted share, compared to $81-million, or $1.02 per diluted share, reported for the same prior-year period. Ongoing business earnings per diluted share totaled a record $4.10 compared to $3.52 in the same year ago period, primarily driven by acquisition synergies, the benefits of cost and capacity-reduction initiatives, ongoing cost productivity and improved price/mix.
Net sales in the quarter were $5.6-billion, compared to $6.00-billion during the same period a year ago. Excluding the impact of currency, sales increased by 4-percent.
CEO Fettig called it "another year of record revenue and earnings per share along with strong free cash flow." He added, "These record results demonstrate that our strategy and larger global operating platform continue to create substantial levels of shareholder value even in a year of unprecedented volatility in global markets."
Fourth-quarter GAAP operating profit totaled $380-million compared to $281-million in the same prior-year period. Record fourth-quarter ongoing business operating profit totaled $468-million, or approximately 8.5-percent of sales, compared to $456-million, or 7.6-percent of sales, in the same prior year period.
For the full year, GAAP net sales for 2015 were $20.9-billion, compared to $19.9-billion in 2014. Excluding the impact of foreign currency, sales increased by 18-percent. GAAP operating profit totaled $1.3-billion, compared t o$1.2-billion in 2014. Full-year ongoing business operating profit totaled $1.6-billion, or 7.5-percent of sales, compared to $1.5-billion, or 7.4-percent of sales, in 2014.
GAAP net earnings per diluted share increased to $9.83 compared to $8.17 for 2014. Ongoing business earnings per diluted share increased to a full-year record $12.38 compared to $11.39 for 2014.
During the twelve months ended December 31, 2015, the company reported cash provided by operating activities of $1.2-billion compared to $1.5-billion in the prior year. Whirlpool Corporation reported free cash flow of $620-million in 2015 compared to $854-million in the prior year.
With regard to the future, Whirlpool expects full year 2016 results to show GAAP earnings per diluted share of $11.25 to $12.00 and ongoing business earnings per diluted share of $14.00 to $14.75.
Fettig says, "Our plans to create long-term value for our shareholders remain unchanged, and our strategic priorities remain focused on profitable revenue growth, leading consumer innovation and best cost structure." He concludes, "We will continue to be decisive and disciplined in managing operations around the world to deliver meaningful progress towards our 2018 goals."
Whirlpool expects industry shipments in North America in 2016 to increase by 5-percent, in Europe, the Middle East & Africa by a flat-to-2-percent increase, in Brazil to decrease by 10-percent, and Asian shipments are expected to be flat in the year ahead.
