Whirlpool (WHR) 27 Jan 222021 Q4 Earnings call transcript

Good morning, and welcome to Whirlpool Corporation's Fourth Quarter and Full Year 2021 Earnings Release Call. Today's call is being recorded.

For opening remarks and introductions, I would like to turn the call over to Senior Director of Investor Relations, Korey Thomas.

Thank you, and welcome to our fourth quarter and full year 2021 conference call.

Joining me today are Marc Bitzer, our Chairman and Chief Executive Officer; Jim Peters, our Chief Financial Officer; and Joe Liotine, our Chief Operating Officer.

with website available at track section the today our of whirlpoolcorp.com. remarks a on presentation Investors Our

Before we forward-looking begin, future as you we I better expectations. want to this in we'll remind call, be Whirlpool making understanding statements assist conduct to Corporation's you that

discussed periodic Our factors reports. differ to could XX-K, latest results from these our actual due XX-Q statements materially many in and other

operations remind measures. important our want to of you they our We indicators these also presentation indicative non-GAAP that that We includes ongoing items are believe measure of be may as exclude today's business not operations. from results

posted I'll reconciliation our open the Instructions] We analyst Instructions] analyzing [Operator most non-GAAP the of section website will measures trends adjusted the Listeners to Investor provide be call for for that, ongoing to our the our of better package GAAP business operations. [Operator for baseline directly measures. the comparable also Marc. on think items in to are turn prepared Relations you questions. the call directed a the information over supplemental remarks, Following With

Thanks, as was rapidly record in was year inflation. Korey, proud us, I'm everyone. and accelerating easy the setting for record the certainly you And year another all now an fourth know, a disruptions setting not that say row. and year good all COVID-related to morning, XXXX very XXXX given

record year we expect As another deliver of results. we turn to XXXX, yet to

cost the remain translate hand, to on inflation. the we, will While hand, on and that supply trends strongly one other constraints into strong, demand believe ongoing pandemic, consumer will continue

returning Also, sheet the in to we cash shareholders. positioned demonstrated we and a are fund growth strength do of As challenging know how in balance while successfully and to innovation XXXX, we to well cash generation, significant our execute with environment. have

material decisive Faced demonstrated with cost-based in every XXXX, I'll of X. environment. our constraints and significant We to any the supply the region, we ability operate highlights responded to to we price full on offsetting and Now double-digit Throughout year. early protect challenging inflationary turn led in of fully earnings delivered pressures, actions a billion business $X margins. And of and agility increase year Slide chain with our ongoing growth with Ultimately, executed XX% record record $XX.XX, XX%. fourth delivered by this strong record free earnings. We adjusted flow raw inflation. XX.X% results billion, we and consecutive improvement. revenue accelerated the of of We for per in growth drove $X year-over-year we generated margin cash share record

significant a increased reduced balance result, long-term very And a our we we improvement dividend than $X.X on a to return shareholder strengthened two XXXX As compared of operating the an consecutive different our leverage ninth with below and structural our X.X prior we're debt sheet gross investing year. times, the returned We billion XXX the years delivered delivering to our we points buybacks of in performance billion times. $X Overall, ago, different of XX%, XX again and a reflects capital our drove shareholders basis and for were improvement Whirlpool year. target business, our world. in returns. of to We

quarter results. to our I an X, on Turning provide Slide update will fourth

Our QX results our were fully in-line expectations. with

and to compared We constrained the delivered quarter chain record an As growth supply X% XXXX. will revenue faced in and elevated of we we sharply a knew both be inflation.

logistic from of EBIT over delivered X.X%, material of Additionally, million increases. and we cost raw $XXX ongoing largely offsetting margin inflation

generated and we the significant million shareholders to $XXX in Next, through returned cash quarter buybacks.

strong teams. operating execution our in capabilities of and quarter of our deeper environment the are This understanding demonstrates the we

to Now results. regional Joe I'll review turn over to it our

morning, good and everyone. Marc, Thanks,

XX% with North cost-based In results Slide execution consumer Turning record I'll growth, increases. the full price by year driven for America, of revenue our North region. X, American we review demand revenue, to strong delivered and

disciplined high price persist environment, by we record in EBIT driven margins, we of throughout execution a our Additionally, cost-based remains as products to year increases which we operate mix. XXXX. expect and full constrained delivered our Demand sustained for positive

outstanding Lastly, our the demonstrate the region's fundamental agility again results and model. strength business of

a expansion basis Turning our impact the the year. I'll delivering X, compared delivered to despite X% review points, negative year. drove margins full Slide Middle East Africa year to of region the for strong region region. prior of results and Europe, XXX And The margin improvement for revenue, inflation, XX%

turnaround confident on in are the is plan we We actions region the place, long-term track. for our and in have

results XX, EBIT to growth strong margins region of cost-based the from for region. sales price despite driven X.X% by XX%, Latin for Full inflation the continued America our very of delivered Turning year, I'll review constraints, and supply impact currency. negative Slide year net increases,

in We to region. Asia I our Whirlpool Turning interest XX, review successful to Slide our for Whirlpool completion attributable is decline region's The will of China. streamlined our revenue majority of fully China the divestiture. with the sale results portfolio

margins delivered Excluding year-over-year. from region region driven impact divestiture. our XX% by pricing the and the this, the X.X%, by restored EBIT positive of to profitability cost-based grew We actions and

disruptions as COVID-related cases shutdowns continue as demand have surged Lastly, with we enter India, New the in Year. impacting

full it turn to on guidance. Now Jim Slide XXXX to our I'll year over XX, discuss

good and everyone. Joe, morning, Thanks,

operating in chain year XXXX be where face another turning XXXX a will guidance now COVID to that including full the disruptions on difficult first quarter. year face Slide we and will environment, Now our we XX, supply

by replacement remains robust, strong and driven trends However, consumer demand a cycle. nesting

with X% we per net to positioned share. growth to structural significant line In a top of drivers fifth long-term consecutive capture reflects of line XXXX goals, It our record value-creation earnings our that sales We these with which are guidance uniquely and X%. expect and growth in year operate demand of provide can is environment. we to any confidence drive

to margins Additionally, we XX.X% flow. of of full EBIT range billion $X.X free $XX. cash a expect This and approximately EPS in to deliver represents year $XX

drivers We full margin the show XX. Slide EBIT of ongoing year to our Turning guidance.

three in basis following pricing from XXX the Europe continued expand in price we two, the product quarter; carryover nest actions price/mix India, increases second have in U.S., positive margins drivers: announced place the fully expect We XXXX; will in which as and recently one, home launches. cost-based seen to points new consumers from of the three, impact by at trends mix the and be

Next, net with measures. we expect offset impact cost basis logistics productivity costs, labor points, negatively increased partially cost takeout only by XX to and by ongoing margins

billion business negatively in costs. to by to We by be material expect steel raw $X and our higher billion led inflation, $X.XX impacted resin

of already the year-over-year full QX. we began offset our latter by of As year, portion to XXXX, a impact particularly half is in price a largest the basis, significant inflation the cost expected increase during year On the in actions. first realize fully mix is

business, impact increased XX we points. marketing investments we continue of margins expected and points Unfavorable basis primarily currency, is in as in basis to XX by Next, America, our to in technology. expect invest Latin

most to in will the first pricing XX% quarter the As and we XX% deliver of our second announced recently quarter, inflationary pressures our impact cost-based be fully expect of year. our half earnings heavily the first to implemented actions will in

will in ongoing actions will results. right and approximately have EBIT navigate We Restructuring deliver XXXX. than be restructuring we are costs reduced environment only a forward, from inflationary place confident again moving to XX.X% in And and exclude we greater our supply-constrained margin. actions $XX the that million

a a year. with Starting XX. robust guidance for for housing broader we increased X%. a industry regional expect expect by in demand Slide demand X% the supported trends EMEA, of contraction we the North of X% show slowing We to uncertainty. as and cycle. continued macroeconomic and to we home and strong replacement Latin And Turning region In demand, expect America, our to growth nesting undersupplied X% environment America, modest experiences market

to the from X% COVID-related by shutdowns in X% industry continues Asia to rebound expected region is accelerate to as XXXX.

guidance, America. strong XX% expect EBIT of margins we our in approximately Regarding very North

and Latin We X% built-in turnaround largely expect pricing price/mix In our positive margins by to as X%. driving our a efficiencies execute we with continue and continued of to we in gains, and environment. offset benefits producing inflation expect positive including of to is heavily cost-based announced EBIT share devaluation. to growth constrained operational associated actions EMEA, approximately upon margins EBIT expect strategy, previously approximately the offset of currency accelerated deliver In inflation America,

approximately margins Lastly, and in line actions we to in our achieve Asia, X% growth strategic XXXX. driven of by top divestment expect EBIT

Slide XX. to Turning

We will discuss the cash free drivers of flow. our XXXX

fund $X.X investments of We organic driven and we products in top investments invest to launching growth improved approximately and cash our products EBIT $XXX by margins. billion, furthering and capital earnings transformation innovative These strong capacity journey. include digital constraints, growth. by our as increase expect line plan to continue million unlocking We

restructuring expect the anticipate or inventory of United largely flow build for are we minimal free been to as outlays inventory activities related cash cash Overall, billion to a approximately particularly we planning these begin position, as We deliver We sales. or completed. States. in have to recover post-integration our of $X.X X.X% moderate

We some sales asset in XXXX. expect

However, expenditures. capital will we adjusted cash longer cash activities cash less defined no moving forward, flow free be will Free by flow. provided report operating as

it are growth structurally returns. fund Slide to we on our turn positioned XX, I'll how Now Marc to over to while discuss shareholder delivering

of our you, we're we unwavering commitment generate We've significant levels Thank and value. drive cash, in can Jim. to demonstrated shareholder

cash margins. We expanded accelerated through have improved generation our and our structurally growth

Next, with cash optimization unique us, outlays. reduced largely behind with footprint actions our multiyear

and the our in business. strategic will demonstrating Additionally, capacity we in continue innovation, to invest initiatives, confidence further

we generation, in to shareholders our of Lastly, approximately $X expect shareholders to to This billion $X.X balance XXXX. significant nearly return a cash XXXX. and strong billion represents cumulative return with sheet since

summarize our positioned Now will Slide returns. turning XX. grow shareholder to to why are I business drive and we

our our sheet. and reiterating expectations by significant cash generation of the begin me Let strength balance

leverage our to X.X% have cash billion X.X. expect flow XXXX below sales. free We in approximately additionally, $X.X or And of of achieved target of debt deliver we gross

we use cash significantly, our Lastly, expectations. in our line with long-term have reduced unique

continue to the cash the returning will our in while to we shareholders. same Second, business, at time, invest

actions $X.X investments shareholder business accelerated growth in our returning These demonstrate billion shareholders value. in our cash fund and strong commitment will in have We to by confidence to XXXX. through business drive approximately that we increased our the support

XX. turning Slide Now to

Let a our XXXX, you deliver record challenging environment, few impressively another and me of operate results. the minutes. recap teams demonstrate able to past what to in ability we In heard over were our year

company We the with and will returns a COVID This structurally of significant another coupled we XXXX and and expect today record do is demand different continue Whirlpool to to cash deliver clearly strong that a well post-COVID demonstrates year, in leverage in consumer positioned to will environment. shareholders. so

our will for up end formal we open questions. remarks and it Now

question Maklari Sachs. comes [Operator Instructions] line first your Sue of from And the from Goldman

Your open. line is

you. morning, Thank Good everyone.

morning. Good

I see impact I Can just bit the shifts you is and hit first give in the costs? in mentioned you terms about about you a sequential first quarter My lot inflation more color margin had the fourth a first – us the in sort of those on how the that year. of X.X% know and you're to thinking in the expect thinking of bridge, question greatest you the a quarter. input half of

impact implying for You're the full X% year. a

Just talk business? the that how should to us thinking the for of about the about those across cadence could costs imply and margins what be we

Marc. it's Susan,

provide So see same let are think And know, what there's the it's me And the we as in fundamental give which I But to all, our see basically you of understand we first seasonality in exactly bit two guidance. in very you underlying, not factors try broader a a little cycle. seasonality quarterly guidance. context. don't to important

incremental of offsetting benefit you half you will QX. and of yet we of The we the expect we back start peak pricing year, QX mean, not in again, in I peak them, and end is do but XXXX. and QX. then moderate have already QX we in of will baseline part QX first, increases, cost incremental expect particularly which seeing they the also the have announced, a additional QX, announced actions And in but effect effect, last the to which they are – that So towards

the while negative benefits in heavily side will towards QX. QX, So QX, and pricing balanced and be is QX more significant QX the more

XX% expect our two of the the these Jim factors, delivered first indication, XX% in overlay that full kind half his which to remarks, in that you provided to first being we of EPS year led half. So

specifically? on very that's to North anything talk through to ripping That's chain, to of Okay. following And how especially as expect in in supply sort – you into thinking should the Can inventory? that U.S. up, the volumes you you're the headwinds really the that can come year, fourth through the to that relative You you – seeing effort helpful. made industry the And the you and U.S. America quarter that XXXX, to come year? this how you're And changed? we focus about the into continue expecting then your your be comment you expecting

Susan, a terms usage and our step just a and that see we housing, inventory, our across Joe still back, of this of we see Liotine. if demand, for we'd of reasons products. strong nesting in is consumer Yes, very take lot just

And of inventory, well. as function it's kind of outside so about demand a as we talk the

And consumer operational But continue disruptions. so same pull. we did hampered experience we to by be the at good time,

And ultimately about a two, to essentially eight we talked six backlog of earlier that We've kind so orders the combination weeks in the the to of down up year. and weeks. four then of weeks chipped to

of yet not we that we've a made the on as progress two would So liked inventory consequence full have those functions.

the first into half expect Marc disruptions Jim had and as period, to We indicated. really QX the continue

getting inventory a factor is levels wanted. we also so And in that the

we the this look do the what to and in you supply the both issues transportation chain issues, throughout chain to all XXXX. Ultimately, saying if I'm supply chip why reason back shortages waves. one. in across domestically. the of and constraints uncertainty to ourselves work related as COVID adding all delays, the even course, and ocean all chain, and XXXX, at some every drove somewhat component not with end for respective and just term, maybe Susan, largely expect what simple Basically, be this supply factors these one, and component also think own and And we some light over, shortage COVID our it most persist is, suppliers. Asia in factories, labor it's tunnel, there Yes. can rippling may effects always particular, Omicron at mean in waves yet And even we as experienced there's out are you completely the though COVID the the of as to see day, is of respective but about might we coming Asia

in uncertainty, back half, is say improvement. impact will the there's would chain reason but expect significant uncertainty. right slightly now, – be half, optimistic a we XXXX. most say the And So I more there why visible that supply the in that's likely, be to but don't I first

to we levels think of year. first of be situation don't it chain, the inventory, the Depending supply some we result a very this on happen some levels clear. by how love be build build manageable would to in half. working As one, will the I the inventory to to end in able may capital the

of next question Bosshard Eric line Your from Cleveland comes from Research. the

Your is open. line

Thank you. morning. Good

Good morning, Eric.

Good could. morning. Two questions, if I

X% and taken And First terms conviction of growth all, in of the demand demand, into the with XXXX, how outlook to that. this and spike through XQ place? especially then curious XQ, to market watch Omicron is behaved visibility X% also in you

Eric, it's Marc here.

by X% important we've First of the America. consumer industry is North which to stronger. driven all, guidance to group, broader really X% for To refers demand is that's for given underlying an That number be constraints. the supply The clear, shipment chain differentiation.

which us constraints industry to. which investment the growth, permission lead consumer give is significant supply actually certain to in factor chain would we will overall So an

But if which So growth you be also biggest the produce. can say, that's into made of of gets will the the now, questions into industry the pretty going I kind by Also year say, QX, much X% to certain better, industry QX again, of comments If Having how of would we supply last that, upside. all first half. X%, full take a have kind in, I now already take lot But we reasonably solid. we risk shipments be ship in That's said be earlier, account. explains to feel risk, a is industry our still explained the was factored some confident. probably chain could year right there to forward expect the right in factor would and account – about comparison in here want what in guidance.

that year I to And can time, then achieved excuse to of attitude Obviously, could, XXXX. a change in now is perhaps run long ongoing just year mix number you've of second, second I price a consumer interested retailer terms ever, something Are seeing the and if But raising the of full for you X% in again back price/mix in or that the don't increases? in the and expecting think notable now reception manage pretty consumer. any the price. their in you elasticity – me, XXXX or

Eric, it's elasticity. that continues price major number concerns Marc can again. so recent there, simple chime do see see strong as and constraint. not demand far, The one answer increase we the remain to And also right maybe Joe we we don't any in. Liotine now, And most The put frankly, about the out robust. is,

comes our supply is on overall theme, consumer prime the again, the concern. side. not to So is back right it now It

course, But actual The we expected one point. argue impact now, impact don't Joe? Of you inflation could talk right is so coming I were price mean, elasticity The see public see inflation we big price the from increases. at broader don't about context belong could a about yet. that – of that confidence. any consumer far, previous

Yes. offering matching have I quite points, that Maybe choice market we think gives their those a adding the on bit of just needs. in consumers

been elasticity brand need consumers seeing as offerings And what of to having exactly regard from choose that so far. product and really for so consequence pressure favorable an standpoint not great in kind and of a that has they

from the comes Your of Longbow David from Research. next MacGregor line question

is Your line open.

everyone, morning, on our and good congratulations Yes, progress.

Good Dave. morning,

Dave. Good morning,

the wanted difference little of range? you that behind sort upper underlying assumptions assumptions to on $XX range the end to the the about a talk end just of just low of of EPS $XX. the about I versus Could in bit of guidance Yes. XXXX some talk the that

context or start then is Jim. this I'll Marc could add maybe off and Joe And some David. there. Yes, And

think if into historically, ranges about range as even go XX% year, you about around in and it's we the typically been earnings. the past, our we've given a As

range a EPS And little bit so wider. earnings, the our grown, gotten as has our has

you estimate If we on a low today end into we're the look an and billion. $X range at with starting end, year, cost $X.XX the we're what as come of between billion versus and the saying high material increases off

very still the within we've moving range parts there's good feel and there, obviously, given. that we So some about

could supply that look we ship. globe, bit others we we while the strong and produce right the play we at a constraints chain into demand that produce as earlier, little and demand, limit see amount around can we do could see Additionally, consumer talked now, come and

So that's where now. right got range we how the to

you're If end, on a constraints little than a bit the little bit or we of that – low higher supply might be chain range. assume longer the thought and materials you the end last at higher are than

the high our would lower that range, to materials go a we be bit than you If what to. seeing end you're used little of

it been Got the like with lately question, concern constraints due down then it's share lot it. a last the was your to for again in I And Thanks particular. quarter. supply the United production your fourth entirely though in there's the I of And in market that. appears and share et States cetera. recall mean expressed second But explanation it that quarter around and as labor, channel unit

are point, chain confident factor, no once think you back are these and again to a win why? ahead in share ability that issues longer to constraining how your As you that supply

and as should well. chime Marc, maybe in it's David, Joe

very U.S. the all, sequential down. and to also be we of were we transparent compared in Year-over-year, QX, market QX. still first slightly share clear, So to gained

around backlog, of we way summer back pretty weeks' So market the at is to now weakest order a four our another also we've the kind little probably managed look which past, we – back. And where kind kind if it, bit weeks. U.S. eight that since, worst period. much to or of to much the slightly ever share of a you reflection of was And We're order backlog. a want were seven explained in state, a to pretty

simply way market confidence. and about can't we the the term talked comments So produce going Having be because gives that on the gradually it's given we making short to our back not us we that, share. enough. are said before, constrained But in

very a have launched We products, high-end for very, high our the newly products. demand

So out work we demand we with. the know We can there. know what

for feel preference be our years. products from we like a the and many we So in position brands, pure best in our might

that feel good products, we of So very availability have that share. market we can once we regain gradually

Maybe, to on just Yes. point. that Marc build

top is been agitator launch has product we load Our related that very X-in-X launched, successful. to

there. Our dishwasher Very launch grown our say, or really, And XX brand months has premium quite XX in continues the steam well. let's luxury Jenn-Air last, to gain successful.

in get the of lot grow. assets market – things are position those to consistently, So help all Marc's to supply, limiting to that us to have see stabilized and a the in need and To we a point, factor we do on come of together. disruptions ready improving really that

next comes Sam line from James. Raymond of Your question from Darkatsh the

line is open. Your

Good Marc, morning, you. are How Joe. Jim,

morning, Good Sam.

morning. Good

your base four in specific I in three steel the that around, think sensitivity RMI months Two RMI mentioned get quick questions, if about Can you where there. going to you much got some guidance think of the you that is I fact and for earnings to how might. prevailing move of be Jim, I XXXX? expectations your year ultimately or this shakes resins is and visibility variability around within we talk metals out. changes

sensitivity. looking So I'm base metals really so particular. clearly, some in be more that steel could at and

contracts of we Marc in is we expectations, the Joe. can But Sam. like could what range is if Jim, variability our would and little add have look I think in Yes, what at he'd a be. place And the this and when incorporates or kind that say we

believe the know specifics terms we what and contracts see there, billion on know, in different have really the commodities and in movements we to on total, billion of the don't give you As range $X could of we incorporates various at But today place. in are. based historically, what $X.XX we they them look we when within we

we quarter came was we accurate one is, number, again, out, terms So of but but were held what billion in really very with line. very later when highlight It long. firm we $X all out when year, see I came we a also last said the would XXXX we'd was in it in year

prices So based we'll right on and steel believe today are be in that range. prices, resin where we now,

Sam, it's Marc.

Just back how earlier amount of inflation the tying Jim or also $XX Yes, we is overall $XX. steel place. would question probably the to see, of variation. you variation what The Jim's echoing and saying Back raw around a much contracts raw about explains comes biggest material maybe Dave's typically in to and in to everyone, in the that know, longer is and hedging materials, particular, there and comments. inflation as in some case

have So of in, still predictable effects much The pretty rippling that is but pass of And part. is increases. have components global it's terms as is, with domestic lot in up a is sub-suppliers transportation concern. a other in gone elements also part logistic is but kind locked significant XXXX. still other much how which transportation gone cost it on pretty – some big – variation, that's element logistic on the uncertainty both still also costs cost And have a

what explains good And I XXXX. So a doesn't one we mean in say It point. pretty some But on now, of which much spot over pretty Jim's I'm cost of costs to with. again, think amount are we're We variation. on. like faced I for have forecast sense about by spot it we these that our coming back would were the probably factors

to to improve relates those you weeks to down What the weeks, My as to been how to specific eight continue don't have at of working that were effects you granularity. improve or to that? to four you've you backlog through? as question bottlenecks as second – the them – you six And don't thank question, why break from as you can been second My XXXX? that able weeks able can be to or the where specific throughout real bottlenecks for least competitively it continue do now

Hi this is Sam, Joe.

had related of Earlier we In and resins terms to of of and that, things nature. events year, different that there lots in progressed weather kind through are of the we how factors.

really it pervasive in pertained were just as the category, So they those terms resins. but were to of specific

was was we As side. that mid-summer around the that, through That got peak. probably our

as progressing. some other we disruptions had some persistent had consequence had say, related suppliers different consistent, ones through then around went a transportation, health And that, around as So more a stable bit chips. global generally. I'll That just transportation. we little of really, disruptions got we We to

why have the so the reason and that improvements disruption the still Marc big impact is suppliers. not cited of terms we waves expecting could we're And other of because characteristics in Omicron earlier that

So of persistent through, position better events, and go can't we we until of see through. from we really be a But to kind expect in various that specific some these really one-offs areas. the from weather got

through see to expect the from probably really of system, chain really phases backlog the let's not seven- of these that say, a to So we until lot per took reasonable in six to to se. come – eight supply improvement the, us eight-week the and now the rest And QX four.

question Your from from line next Michael Rehaut JPMorgan. comes of the

open. is line Your

morning everyone. good Thanks

Mike. morning Good

a focus. big I had question area share, First was around of market investor

your look the you North X.X%. fourth grew If America at quarter,

consolidated roughly for just Similarly, the maybe said it's and versus days decline X% to being growth North sake, argument a past, talking revenue that in the flat. of basis, you've kind on price you apply, you're think America, proportional, at or X% for about benefit mix least of I you're If XXXX. looking X%, X% industry at overall volume

think is just to share industry presume make out sure it versus slippage of terms continuing. about I in take upcoming change right shipment during saying and the or how to the volumes if looking I it might XXXX, chain in around that time right, you're benefit, we're Obviously, you way want of you expect mix supply X%. XQ occurring that share what even flattish your over globally the constraints. that's at the But there, mix about you're and price market thinking If appears market in that year? what's

Yes.

it's Michael, So Marc.

we're still first before, all, Again, first QX, down of and we sequential but year-over-year. on in as I zoom U.S. in gained let share, So mentioned me market

growth guidance, share cautious a For a seen also, from on. we mix U.S. demand, we volume the we're the the see to growth. a What you're a same kind slight you've And market have And portion. X% Again, think pure little bit is the global not in going from XXXX, to I specific as significant our components would referring U.S. perspective, is which America expect Europe, year-over-year of expect global X% different a you revenue for in that gain. you Latin may on as respective

X% factored X%. the differences expect market overall So slight specifically in XXXX for do again, gain. are there's still U.S., regional But very to year-over-year a for the share which we

and year slides. denominator, also Okay. That's share $XX I wanted it. other $X full of I fully the in be that than also be the the Marc. first I areas. price I of the clear And repurchase mix a clear assume $XX quarter. with to XXXX, billion. includes less components on thoughts the XXXX some throughout part of that the on cadence and that's One, of just around helpful, not the I challenge the then average, wasn't quarter first guess, the of appreciate whether couple to secondly, or will EPS,

take kind to in both you – take price to the year, but the QX. mix, into announced of got QX talked I'll and the bottom and But carryover line and Yes. Marc some earlier, recently start we Michael, I'll here with I'll about drop don't coming ask increases price later get start we've comment. effect the into and then Joe – the to as them to until actually of on

of pickup is the price on there of terms that recently a So half kind back we've increases in announced.

level just there's share it's drives repurchases right it a lot of year, is share now year. relatively then upon moderate assume I repurchase, the the timing we'd last obviously in when we would as the we point what Spread some a is we've year. year. now, we And all time, evenly. the at there dependent did level of because right assuming a terms a obviously, of the But within that In go within do estimate update. incorporated moderate But within different throughout that

line the RBC from Mike comes Markets. of Your from Dahl Capital next question

open. line Your is

Hi, thanks for taking my question.

on ask Just another standpoint. from the maybe cadence but year, the follow-up volume through

supply this. also sounds on some the harp in year. more level. comps constraints to difficult Near But at first are of there's elevated an half staying term, it Sorry like the

the effectively – volume suggest be think comments be to other global the global that for specifically Is first any kind what to is the And year. second? would would So and in guide implying to volume on full North seems when similar flat to up Would you you the the expect your great. guide the year? of year it – of half about in the America down get that then

do Mike, Jim. earlier, maybe we see, And assumptions. bit mentioned our increase. volume right throughout this will a Yes. some it's year, is now Joe we that kind of produce I'll the constraints with we start the as assume And as that ability of little with the to go

does impact the throughout that the volumes So year.

look you assumed throughout bigger we seasonality come The the at to year. is other it said, with material we've first then the year of the starts year-over-year where though the thing that, as moderates the back we about as in all half half impact talked and of costs, and the

those probably lot a now, right of timing in there's the drive there are that biggest. So the but two different factors

Got it.

And Thanks. just North then on question is the Okay. America second EBIT.

of in other activity year-on-year drivers can more Historically for any margin the XX.X% down answers. Obviously, returns? year, North or strong from is now guide speaking, inflation XX% whether it you've that cost level. an XXXX. assumption the dynamics prior there's full obviously just also, Your promotional still in America? And in change XX% and But that's talk very maybe about high – specifically talked the to the a you in

is Yes. Joe. this Michael,

they of EBIT North defer to margins, product actually QX, continue year, cost And the a strong really our American of QX, I term. again, by put the remove at the do long mix remain price little events that be things eliminate also of bit by driven of with the to a place in earlier add offset and launch in benefits, costs, of in the in lot favor. costs, side within of our XX% that a of levels headwinds from the to, is we standpoint, kind actions experienced disruption Marc XX% really, terms to XX% some the costs, and In coupled well and spoke and all of either Jim, guidance sequencing

that really big see. that is drivers we so the And

doing a take a just best fairly promotions, demonstrated the of long always terms can rational I very what we do well. track And comments and we future on there. record would But a we In makes we've we of and market, of don't lot promotions. to say that approach effective in do sense the

Michael, just to comments. just adding it's also Marc, Joe's maybe

I XX% goals our I that XX%, had strong given we about our the supply surprise. given to of on shouldn't there. opportunity long-term grow, comments North of do at long-term the how a where put a we America established be we XX% and potential is even our on feel we behind promotional XX% heavy creation earlier Given a and reflective environment, we that big in Specific your the my U.S. just soon. guess anytime value business October, the return question argue we what environment about chain, have the not we expect promotional to would

Your of line next Ken comes from from KeyBanc. the Zener question

is line Your open.

Good morning everybody.

morning Good Ken.

morning Good Ken.

So many things.

just at supply. is look U.S. limited which you're by demand, the saying Let's being

wouldn't the one You that. suggesting only be

the which, one-third kind could talk if is, maybe I of then sales, those market, is as the a kitchen we at of usually, about really it two recollection And as a Specifically, R&R about on what something. would one-third, large Could that the you'd piece? sales volatile of time, to move first which going that confidence. perhaps your in of those that's my seen we consumer over to That's demand maybe seems a is kind more areas? the discretionary, talk I've that Could being lag forward. question. about and highly the you're correlated consumer where different of look right, two-thirds longer that think large Because be, trends you trends or about be that have of like remodel my seeing market, be of right, kind perhaps of you one-third suite, remodeling leave, XX%

let to try take Ken, me it.

past. Housing, numbers demand rough about globally, reminding First extent, of also which is of In terms in some split of to in anything more said, like appliance we're to supply audience repeatedly else. about the mid- XX% XX% constrained housing, directionally. communicated the all, U.S., our industry, we as long-term bullish. the the opposed we replacement discretionary and is and now as Housing, about right XX%

So two supply. getting is two but again, we we're strong will you very to X.X one being have or and U.S. environment, made expect constrained comes housing support that be money continue not its be just million. effects repeatedly million government year. Discretionary, And non-constrained have why way for X from spent It's Housing to consumer is, that said to would by now one barely every still unit strong, in positive you and years starts saving back housing sheet. balance yet. we basic

with strong coupled invest on very and sheet, and consumer nesting balance being even consumers willing trends related. So home to in anything consistent stronger

last the So this that then leads which helps XX% me us here, roughly. talked we about before. And thing, to the the replacement,

and use seen demand. accelerated about are That washers replacement replacement has oven the been To we QX, that's XX% there XXX% going there drives compared rates appliances, pre-COVID is even is I the consumption forward. appliance of last in been the pull and higher the out saw think these one years most misperception numbers, on forward. that ultimately We to from up. two you going What has replacement our increased stronger which and in connected you've significantly than in and forward data faster of some the biggest drives opposite. give usage recent numbers, know more

story, the one Ken, the trends. number So three supply very drivers, know, feel The but about. constraint reconfirms still strong All it's on chain. a we very demand long it basic and bullish I just is

I throughout and of just it that top more year. would down are we maybe or think comments, of constraints, versus price ramp the much on throughout normal of kind be could given we And and pick it through comments and to XQ similar then But saw choose in lowest kind move trying your Does seems not given than with in suggest line, first the the you I'm different occurred pricing trend margin be XX it this that cost like implied XXXX, ask too seems your guidance. sequentially a basically very Good. year. people ways, lifting rest supply during the terms progressing perhaps kept would business where of dynamic in and bit, same, the the little year? times, fiscal which XQ just quarter and sequential margins just your Jim, your

Ken. Yes,

half this that to that, then, in XX% first half and Marc year, our year the earlier is in the come expect in back XX% of XX% we'll As to for earnings of do pattern the kind see we the year. mentioned obviously, the than of of XX%

will one that So imply I does revenues throughout mentioned as earlier. that and year, volumes the ramp

The ramp increases we've begin will on second those in but thing an it, too. the That new obviously as that drives have that just price QX. that mentioned line QX announced, to the will then impact we and top you into implement and

exactly, the type terms ramping a of of should similar revenues expect but year. throughout So not pattern, you in

America. line from next of Suzuki question the Liz Bank Your comes of from

moderate quickly one a Thanks first market quickly potentially gains? if my lead hold anticipate, for taking to to than upside? prices, and on margin the you to expect cost raw be you react question. therefore, material I some some some environment is, and the these higher more of to guess some pricing would would more bigger lower to Or intention with pretty to attractive share costs consumer

to back Moderating doesn't Yes. inflation zero. the reiterate, expect QX in to QX Again, moderating start Liz, going Marc. and and half. it's peak we mean it's in to down to

the we deflation return or to but in half. in still half. the inflation we get will a we – a then experience But back can So not some see moderation, reassess we once And back zero. expect back

input the mind, time it lag to price by consumer time output get The between inflation other keep also you and inflation, a certain in thing is or there's market.

year we I – a there's we is said I we only just environment, a call, effect. impact, broad confident of what one. delay the can we're expect So I repeat certain on said level, do before And a environment. on this And on promotional and anytime what a yes, heavy a what not full six-point a towards about soon guide price kind pretty and

costs that gone probably talked a to time. But and materials. labor And as we of have over costs about have up I'd Liz too, that also add the Yes. logistics Marc period significantly

timing back got And within may variables moderate when sync. come some of the those So there. to be in of begin or multiple you've not

So a of factors consider. there's to lot

about those typically rate a on Great. use some environment percentage on and And just consumers what on pressure of has demand buying are credit the appliance for items? put ticket think environment, demand large historically, credit? as rates we rising follow-up of rising, the a And

Joe. is this Liz,

kind happenedX terms really, levels. and have In that historically increases the we're of still I at low of mean, demand, interest

a an from absolute So standpoint, where average. we're not position any of at exceeding historical we're kind

favorable you take So just is back. when really a still step that

In addition, are to a of so. homes, earlier, or related as appliances approximately said XX% smaller percentage new Marc

So that's also a smaller impact.

factor And in expect you, terms that's really In today. decision would just do that consumers the not historically have given or what of financing the things case. remain other criteria to a low and store huge that in we levels, the

at new of purchases. favorable still So home for generally in a least us that's item speaking, terms

a to in time. expect consideration we consumers at factor be that this in point for not So big

even finance Liz, it's echoing. of no global just consumer but products is and it's America impact than increase sheet, other you small, markets the direct smaller on the our percentage with have like rate U.S. interest where Latin slightly appliance On percentage, that purchase will a are before. it impact. an Marc, balance strong in business. almost consumer has – higher There really The not

there's would on to really meaningful a impact would argue given some a go before here, impact that way. that You multi-decade are housing. the mortgage way where in still may indirect in an even But demand comparison, have I consumer rates

So are rates right now it way, let's interest lesser put for us. concern this are

up question, the wrap last maybe me came just here. give, Let it also just we to

all-time is zooming what strong a all all, all-time bit you record record. record the we're all-time revenue, an we a And and this said and year, First thank XXXX joining. margins, fifth towards And all-time of repeating of cash have a record a in balance flow row, for Ultimately, sheet. now also was all-time guiding we little record year out earlier. fourth

feel business. about very So we good

demonstrated challenges and we've But to commitment do we strong some commitment and and we would well and the argue, challenges four think with continue course, to some that's Of in and that with, I pretty particularly they're And to QX. unknowns I unknowns strong can QX deliver and firm results. deal years, have deal last our so.

thanks you thank a again, you at to lot talk and our So next all. to look earnings forward call, I again.

Ladies and gentlemen, that today's concludes conference call.

now may You disconnect.