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Whirlpool Q4 GAAP net earnings $81 million

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Staff writer ▼ | February 5, 2015
Whirlpool Corporation announced fourth-quarter GAAP net earnings of $81 million, or $1.02 per diluted share, compared to $181 million, or $2.26 per diluted share, reported for the same prior-year period.
Whirlpool
Whirlpool Corporation   $1.02 per diluted share
GAAP results reflect $1.71 per diluted share in costs associated with the two recent acquisitions. Ongoing business earnings per diluted share increased to a record $3.52, compared to $2.97 in the same prior-year period, mainly driven by revenue growth, ongoing cost productivity, the benefit of cost and capacity-reduction initiatives and the impact of the acquisitions.

Net sales in the quarter were a record $6.0 billion compared to $5.1 billion during the same prior-year period, an increase of 18 percent. Excluding the impact of both foreign currency and Brazilian (BEFIEX) tax credits, sales increased approximately 22 percent. During the fourth-quarter, the acquisitions contributed approximately $1 billion of net sales.

Fourth-quarter GAAP operating profit totaled $281 million, which includes over $135 million of costs related to the acquisitions, compared to $354 million in the same prior-year period. Record fourth quarter ongoing business operating profit totaled $456 million, or 7.6 percent of sales, compared to $386 million, or 7.7 percent of sales, in the same prior-year period.

The benefits of the acquisitions, higher sales, ongoing cost productivity and the benefit of cost and capacity-reduction initiatives were partially offset by higher material costs, unfavorable currency and the impact of product transitions.

For the full year, GAAP net sales for 2014 were $19.9 billion compared to $18.8 billion in 2013. Excluding the impact of both foreign currency and BEFIEX tax credits, sales increased over 8 percent.

GAAP operating profit for the year totaled approximately $1.2 billion, compared to $1.2 billion in 2013. Full-year ongoing business operating profit totaled $1.5 billion, or 7.4 percent of sales, compared to $1.4 billion, or 7.3 percent of sales, in 2013. The benefits of the acquisitions, higher sales, ongoing cost productivity and cost and capacity-reduction initiatives more than offset higher material costs and foreign currency.

GAAP net earnings for the year declined to $8.17 per diluted share compared to $10.24 per diluted share for 2013, primarily due to costs related to the acquisitions. Ongoing business diluted earnings per share for the year increased to a full-year record $11.39 per share compared to $10.02 per share for 2013.

During the twelve months ended December 31, 2014, the company reported cash provided by operating activities of $1.5 billion compared to cash provided by operating activities of $1.3 billion in the prior year. Whirlpool Corporation reported free cash flow(3) of $854 million in 2014 compared to free cash flow(3) of $690 million in the prior year.


 

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