Whirlpool (WHR) 25 Apr 242024 Q1 Earnings call transcript

Good morning, and welcome to Whirlpool Corporation's First Quarter 2024 Earnings Call. Today's call is being recorded.

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

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

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

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

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

Listeners the for for the the GAAP supplemental are a adjusted think the most provide will information better package also posted comparable analyzing you Relations website our baseline in items our on section of with non-GAAP to directly operations. directed We trends Investor the to measures business of reconciliation measures. ongoing

Instructions] [Operator

call With turn to that, the I'll over Marc.

good and pleased deliver guidance. reported despite challenging quarter, morning, I'm Scott, our expectations, to we're year Thanks, on that on in we full solid first and track macro a with to a our environment, report line everyone.

following the creation opportunities portfolio major for Whirlpool. This our quarter business, is value significant a higher-margin unlocking initiative the completion U.K.'s higher It EMEA to milestone marked approval. transaction transformation CMA our of a in growth and

spending. first high pressure remained discretionary quarter As expected, interest promotions the put and continue the of North which to affordability on overall as during volumes America on soft rates, the industry elevated housing were consumer back persistently

were while value-creating, back how market with position. maintaining on and highly we Against promotions this we were so we promoted backdrop, and share our did pulled not that selective

quarter. execute also towards priorities, the meaningful disciplined remain and cost reductions in our achieving We operational

appliance at where and small expansion. business strong saw margin in had portfolio, top we a we Looking domestic quarter business, holistically our line our

continue product machine businesses. automatic very Latin to meaningful U.S., business from lineup. innovate business see our and in we Espresso continue launch America this to potential and and Outside long-term We performed our Asia the well, these

of the committed shareholders In the quarter, firmly record value increasing declaring India, deliver XX% steady a us we on of second for recently putting of to to paid or to remain our dividend retaining in track executed in continued of be $XXX ownership. by dividends returning XX% also our dividends year. We nearly our million quarter, stake Whirlpool to the track of $X.XX and the announced XX-year sale on

balance remain from to our are closing leverage the expect achieve our targets. flow European and track fully our throughout in up with cash first cash low long-term seasonal the quarter long-term year flow derisk and to the and sheet continue the transaction. goals on free also ramp our We We of committed to to free

we look U.S. the expect first of the tale ahead, last X continue the halves. remain the to in we impact XXXX year, we year. a particular, from half carryover promotional As environment year as in the a of to In elevated to view

of half second year. the in the promotions high comping be will we However,

XXXX. impact expect now We do We price top America value offset of in which positively North our which see to pressures, second announced in X%, to the our line. half also this the is products inflationary benefit increase benefits would promotion program and from action effect the of

unchanged. housing Our of the market positive remains view U.S.

given appliance its houses sales existing the between million long-term housing We're medium- very undersupplying sector correlation million current housing the remain sales. and to prospects. trajectory the high of market, X in to of Given clearly coming and we and home well on a positioned benefit X bullish the from the rebound

with top with strong We XX, which builders, out expect the with we work to share of as position grow. we position X continue to #X builders the a holding have the

we as we at and product laid continue a invest to Investor for out in very development new XXXX, pipeline we Importantly, have Day. product strong

come We're particularly rolling excited about the to year, there. more out that products new we're this

We discipline the increase actions on maintaining cost are takeout half second in and the to focused year. taking also remain of cost

While our material chain any savings, put the sticky million seeing should million savings. to us these costs, we're actions inflation, on in in cost especially path $XXX $XXX deliver excluding supply to raw

our long-term short-term Overall, value, I'm right to track with steps taking that on well strategic Investor the our we're with outlined we are our plans as shareholder Day. long-term goals drive confident where as at recent and both

progress and full solid year we exiting footing, share. meaningful quarter remainder to taken to have guidance are ongoing give the us of The actions confidence our expect continue $XX the per of we earnings to We $XX in reaffirm first on the year. the

Slide in approximately X% X, quarter. overview to an provide results. will declined Turning the first our quarter Net I of sales

of environment half As first we price/mix the XXXX unfavorably said promotional in of the our earnings half in the normalized January carryover XXXX. impacts second call,

In the prior gains strong North America to market gained improved ] year. share demand we region. industry MDA the held last At we with Latin time, share America, on along saw same for [

year delivered as expected, first cost actions $XXX the in carryover million quarter. cost takeout prior of Our year-over-year

actions, costs, $XXX cost a of our the towards As to we us noted, million the inflation incremental cost a at range trend on previously $XXX slower sticky experienced to impact leading this to time. for end takeouts chain million lower supply start

with the EBIT of We margin-dilutive delivered share Europe MDA ongoing per X.X%, of business. margins $X.XX including ongoing earnings

appliance domestic of approximately ongoing major Europe's margins Excluding X.X%. EBIT we delivered business,

by points approximately As you go-forward a our this may basis. transaction we basis recall, expect improve on will structurally XXX margins

expected line to America environment. we but were not macro way expectations, with in results the our due the North challenging fully largely The

impacted strengthen by cash business free the million nonrecurring Europe our Europe transaction reaffirming Free expectation with associated flow approximately was delivery. XXXX million, will flow negatively MDA $XXX to cash the outflows our $XXX cash of that

in the share quarter. first Finally, XXXX per paid year marks of the $X.XX dividends, XXth consecutive with

Price/mix by XXX our Slide ongoing margin will to basis X, drivers. margin unfavorably points. review Turning I EBIT impacted first quarter

For similar of the we this what is context, saw half second to in XXXX.

of We North a improve promotion to announced programs expect America. recently our price increase of this in trend as result

Our actions point margin carryover of strong prior cost realization delivered basis takeout actions, mentioned. expansion previously as year XXX through

have are stubbornly seen, and raw you have oil trended prices. remains impacting tensions material geopolitical costs high Steel recently As upwards. all

not While QX, meaningfully to could closely follow impacting margin in our put which on we trends, material commodity pressure guidance. continue potentially raw

Brazilian Finally, ongoing margin basis we X.X%. approximately we a largely impacted delivered favorable XX and saw EBIT Ultimately, margin peso strengthening of from real. points

turn and it over will guidance. results review segment year our I full Now Jim to to

Marc. morning, Thanks, everyone. Good

business. our margins X%, down X% was X, as share, The X.X% home America MDA Slide be segment the I'll revenue industry first the impacting With for mortgage EBIT review to quarter. stable the results Turning quarter elevated delivered continued rates sales was by to approximately discretionary with the year-over-year existing environment. segment and demand. U.S. down promotional for North Overall, impacted

While the realized program start had over drive actions MDA quarter, North previously will quarter. are X announced in expansion a point America benefits sequential we than per of promotional the slower expected, margin with business being fully third action confident that pricing

cost led and the X, slower will Slide in benefits to incremental a inflation review Turning broader to how in cost environment has XXXX. ramp-up sticky I

rising experienced driving inflation delivered through XXXX our takeout XXXX, XXXX, with $XXX As material labor absorbed of raw freight continuing takeout we actions, $X.X million approximately you and we million recall, net In may and coupled of and unprecedented cost beginning along of material billion $XXX in costs. with cost raw inflation benefits.

took structure. step towards resetting a We significant our cost

logistics and our input, seen more expected in than have labor inflation persist elevated. and remain XXXX we However, costs

the in actions. Despite delivered cost quarter, strong the by from approximately macro environment, million takeout carryover we first of supported $XXX XXXX

expect the cost continue to to manufacturing supply and We actions our see up ramp throughout year. chain

we'll transaction the the our complexity this globally. model executed global simplify in to allows actions With our the margin quarter. us quarter, of first benefit organization first the begin to in finalized, the the second operating see wave of We and EMEA

Additionally, the remain X,XXX of and confident Both will impact see we successful the full the organizational approximately executed position simplification combined into future. our now actions second QX, the will business eliminate in to and global actions will salary efforts these waves of be QX. laws. We wave be in

and margins our promotional to the In what in of expand share we XXXX, a intensity. we we environment similar the clear first to we achieving second address would remain saw participation, It not in acting quarter, are without X. the about incremental saw North Turning with to and sticky investments more to U.S. lifts I is America. expect. current the of Slide inflation is half to will actions We the volume level promotional in both the our promotional creating our value expectations. promotional committed value-creation

actions program and of By our promotions program a the prices, value are net weighted announced our As and quickly able time. increase. Marc these with mentioned of average relatively create brands. in efficiently earlier, We participating programming price believe promotional products promotional we prices promotional our X% little increase lead to value strategy line and in that with reflect adjusting we are

days we context, organization to April throughout These previously program for opposed our America are program communicated the these coupled expansion actions implement. sequential North implemented to list and XX changes, to little as typically a in XX provide which to price promotional takes of executed expected company-wide To margin changes, deliver our month XXXX. increases, with

to was price results Europe by year-over-year the down review mix. sentiment. Revenue the MDA as negative impacted continued from year-over-year margins I'll XX, see points demand Slide XX basis weakness on decreased Starting for consumer negative our EBIT segment X% business.

Europe As reportable no moving a forward. a reminder, MDA business longer be will segment

XX. to Turning Slide

The than industry tax-related business throughout an price/mix. and by and nearly currency, America from an more X% incremental Latin MDA region net both margins volumes, offsetting and actions segment Brazil cost in share sales Our from approximately basis very X% operating points strong excluding quarter. improving in unfavorable XXX results Mexico, the EBIT saw the item. reported growth, to gains expanded driven

Turning to with driving increased to and solid Asia business. price/mix X%, with Revenue margin results impacted quarter. sales expansion cost the actions review X.X% MDA down takeout volumes was Slide for share margins, both our I'll from Negative gains. the currency, excluding for XX,

very XX. our delivered I'll for results The X currency, growth, approximately strong Turning by to driven countries excluding of our business. SDA business. points Slide segment direct-to-consumer sales Global and review net key the

sales year. the offering throughout We from momentum product expect expanded net our continued

revenues. represents of As year a seasonality SDA of than first less typically the XX% full the reminder quarter segment, for the

actions, achieved through cost growth. Finally, our EBIT we XX% introductions and new product volume margins

first expect what half better we in as QX line Investor in product or be incremental launches. investments marketing at have was Day will new margins communicated We with slightly than to our to related

a across XX. to our our of business will new Turning review segments. exciting few I product Slide launches

at domestic this month, premium Earlier based retailers, semi we business. one on product with and domestic machines and the our products potential in many our growth automatic current During appliance across appliance of the QX, a we market regional launched businesses offering new providing major new KitchenAid global trends. launched categories lineup small fully and espresso floored highest

barista longer a have a espresso high-quality make home. no You at be to to

lineup years. for over new all machines quality that and versatility, espresso coming of the has in been kitchen Our design, unique performance, trusted brand a from beautiful offers a features XXX

We Dot ideal awards, amount am of with design and rice also and recognizing grains, water introduced tank share senses our won of and to and KitchenAid that or water. cooker amount I scale products multiple pleased integrated the an grain beans these extremely Red the from that IF. rice their automatically dispenses

Dishwasher. strong bowls continues cycle, Pets homes pro. like Using with now pet SDA Sanitation first conquer growth pets' grime your a introductions. to from we can launched our expect in America, Within for you product PetPro the in pets, North Maytag margins new Global

innovation example, life what the range we are how freestanding in a a value the in investing the America, These most with few burner as of redefining examples are many improve is we growth product our future at and Latin launches, of Finally, accessible home. one consumers. to launched an in segment, regional powerful just to

Turning XX. to Slide

remind me we BV. XX% X perspective, board following the have seats. now you the Whirlpool company, Let Europe governance X Europe expected From of of appliance the of of benefits a owns Banco the a transaction. closure formed newly

that Banco commitment to continued productivity efficiencies already We capabilities generate, and building participate sustainability. and including sustained in design, purchasing established innovation expect will to significant product the upon

at with potential We million. unlock a envision the an at parameters present a after interest minority of value have years. long-term includes long-term $XXX number profitable ability our to though options creation estimated relationship value we predetermined through to Arçelik, shareholder exit Even net the agreement of monetize X our

cash to is agreement incremental licensing cash $XX year. value $XXX flows brand Whirlpool absence cash million XX-year with business. more flow $XXX of the expected Our million million MDA predictable Europe the and we to than Overall, per generate flows million net $XXX expected expect of cash-consuming free of approximately XXXX, present future of in

us achieved that business. have to significantly higher excited transformation towards our in portfolio are growth, progresses margin a milestone higher this We

our to guidance. Slide year review XXXX full Turning I XX, will

our reaffirming range cash million $XX, are of $XXX We to share flow ongoing guidance free and of to earnings million. $XX $XXX per

approximately Additionally, our unchanged. remains $XX.X billion, net X.X% EBIT sales guidance full margins year alongside of approximately ongoing

Although had sequentially right slower-than-expected confident actions our expand XXXX, a throughout MDA North the have America are year. to that the we margins to start business in place we

half to MDA North of second to X to XXXX. America margins X% expect of the compared MDA XX% We America X We exit year rate months expand full points with North first approximately margins approximately an still of XX%. expect

X%, expect of a our reflecting first earnings benefits to year in of expect of year the tax Europe to and the the adjusted the XX% We XX% rate continue full transaction. deliver half to approximately of

our transaction. the related guidance are updating noncash reflect Europe We to to GAAP charges

to XX%. GAAP year tax rate approximately be expect continue our to full We

as tax materially impact the may However, we impacted. of the the rate transaction, finalize GAAP be

XX. Slide to Turning

sales as Our within March demand levels unchanged. $XXX free impacted cash receivable we first working cash. production stronger demand. million than by quarter industry the was actions Accounts seasonality XXXX. while Accounts by to weak were the supply match took March approximately consumed quarter, ended quarter payable January, flow of impacted guidance with in capital with in lowering of In the remains

from end capital through As throughout accounts XXXX, free payable to sequential accounts year. working expect the similar at receivable levels cash we generating flow we the progress the recovered and see to year, of

As to macro in million. we optimize North our continue continue we working flow will to capital. cash the navigate environment we $XXX of free challenging Overall, to America, expect $XXX million

I on review are XX. Slide deliver will we XXXX to to priorities. track how capital our Turning allocation

outstanding actions completed of first while Brastemp of to to majority our retaining quarter, in year. to Whirlpool these cash shares continue approximately branded XX% this sheet. filtration we water X of actions strengthen our India's balance expected interest. And XXXX. is Brazil sale In We in of take the divestiture a business million the later of close generate the $XXX Combined,

million quarter of we pay for first to same of share, are XXXX. our in declaring on per dividend $X.XX QX, track the and $XXX With dividends approximately

repaid We to offsetting dilution share of we credit compensation first Additionally, completed $XX $XXX commitment loan million of our term in April, programs. in demonstrating investment-grade buybacks million employee rating. maintaining our quarter, the our strong from

see, can XXXX our are allocation on capital we deliver you track to priorities. As

Now will call over turn I the Marc. to

Jim. Thanks,

today. let to Turning Slide XX, me recap what you heard

quarter challenging had in while SDA a were line performance Latin largely strong First expectations MDA results Asia. We MDA and environment. a navigating America macro in with Global,

to the a we well contract. America, North with recovery While disproportionately be a in slower-than-expected builders benefit the U.S. continue XX had housing of U.S. X we start in positioned top to market, from under

We promotion address already are environment, and take will increase of X%. to implemented continue including the action program to the macroeconomic price

the ramped quarter. in third margin begin fully expect QX by up sequential expansion and We to

delivered full approximately $XXX $XXX takeout remain million we takeouts. to year focused the delivering quarter, million on first With $XXX cost of million in cost of

company-wide already quarter. the second We taken our in organization wave completed the have action will simplification on be second and

EMEA growth, million represents considerable The step margin higher by a $XXX The flows transaction free to higher expected million transaction cash structural to in approximately towards meaningfully a $XXX accelerate is XXXX. our business.

reducing and by debt XXXX capital allocation strong generation. strong cash priorities, leverage, clear including our dividend have sustaining We supported

operational to have dynamic navigate we are returns. and deliver We sustained actions environment confident this right that priorities shareholder and

for our it And and up will we that formal now questions. remarks, concludes open

[Operator Instructions]

comes from Maklari Goldman question from line of Susan Your the first Sachs.

North segment. by focusing bit I on start MDA want America the a to

the us what year? for confidence that price as from can And or every increase get things And that that's XX% that X% this of move feel think mentioned you like bridge increase reported you it you price Does XX% will just relative promotional where you that? the X.X% quarter I rate in? that to to comes promotional you this getting with conservative exit in you X point announced. that think been will expect come expect how gives -- guess line in to help you You to margin through do X%? quarter, the is response volumes to perhaps on

it's Susan, Marc.

just think comment we've announcements done. which beneficial And which margins for the me first maybe, the on North let pricing a pricing is of all, So typically America the America explain audience, how and I bit broader in North little structured. is

set consumer First the out of retailers with all, starting the prices.

towards retail how is typically how talk we guided So prices about there's we X the typically and goalposts. way

there tied tends programs. so manufacturers and prices. we which price typically a is stick price, promotion to MARP, retail the what corp there's One the And mark, is be to call advertising, incentive to monitor high adjusted towards these they're

majority tied programs. promotion price the typically retail our towards XX% somewhat is On of side, vast this volume, about

structural promotional So X%. have of across-the-board what announced we increase these is of a price programs

If you compare And move it affects a take really because of benefit effect the it's lead now. a doesn't being that it real to time in moving able MARPs, so faster there to is business.

very it's So relevant.

from of timing, it touch it's course, X now of you so April anymore, first then in then even and QX, July of terms Day May Memorial and effect, and building In though there. it starts can't starts all, for touching

So market. how into the of get that's you just the sequence

translate price over the some leakage increase typically reminder, time directly expect X% our is this to price X% net typically line successful and into realization. you be X% X% past, a to to but protection, There a in because impact. this typically margin bottom As the of doesn't is would

So that explains move. sequential the

in then expect point similar and X about that QX, of we subsequently elements. So with one

that's range. buildup the of a So

our frankly, the But last volume We we gains. we competitive product a North impact, months. course, very of environment. share solid XX feel the is as over about had confident launches Now highly product, market evidenced America

strong pipeline. product We have a

and it. the revised pricing believe pricing the the consumer what to gets consumer willing our we promotional fully promotion value So for do is it which for reflects pay and

So back confident, in we're actually, of particularly the will on a also pretty we the be quarters impact volume got the last X I that think gains, X to which moderated. distribution

then to Okay. maybe the turning appliance That's helpful Marc. color, And domestic business. small

some What margin. thinking we had bit especially just those drove the through about to relative quarters? you where You the that that couple what us today a for really takes puts this there, change more And how year? take some talk next you're are the results of of about Can didn't you are factors? on that guide impressive and

Susan. Yes,

very cost SDA, a America and cooker. strong of of We year, So good we're proud That's like bread of new business had and both. rice like The domestic Latin but of appliance progress. the one Stand about, good on had our much Asia, cordless and the very small the called sell-through really a is also we frankly, combination start and element. very We had feel a business, solid Mixer, butter grain -- some product the very the and introductions it.

good So momentum coming from introductions. there's also these product some new

all QX. change it's of of particular strong business, the QX had right a to just all in the that SDA quarters. the reason X full kind put I smallest quarter together, The the very why, we mean, not is on guidance, So year it's

business full domestic is of versus coming the and seasonality back-half year more appliance loaded. So the small

product have a also launch we massive will invest with in significant marketing QX, which dollars. We

what, way it's off strong And are there early be we're moving confirm point, yes, some matter at too that. but parts. kind could no to of commit start. very some a But X upside to there and So

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

in on down just little to shipments. American wanted drill movement I bit First, North the industry a

X? the of quarter, wondering sequential you the actually, if slight price/mix the out with your which I for could down I said kind would the of be X%, gains, AHAM in you down kind would consistent also shipments X% the strip spread but of those headwind if reconcile from you quarter. think kind was

kind the And why And spite also question, lagging a of the discretionary -- bigger more demand here in a of activity. broadly, some picture promotional just about you're of talk price increase. it's talking about a on perhaps and

if just of if they I'm some are next competitors there weaker don't potential let's in X? in loss kind for the could following that, a wondering, follow, not your demand If quarter say, share backdrop, or be

Marc. it's Michael, So

shipments. Let me address industry first the

data, restated and some these import in by validity you restatements players. numbers, we past, from numbers typically saying AHAM it pretty we between know past. the had what about restatements. AHAM are our confident we I'm with which QX questions the the this retailer, of typically balance feel the sell-through of has one restatement And the -- in data, As what reason triangulates one the driven about smaller know well we and correct. very This our of have noted, And consistency from was and sales we've frankly, given directionally the from some the we

that's so AHAM more that, be but we year we said it's you say nice, Having gains, the had, slightly fairly in think And that last we more which a gain, would basically mean market fair take on scenario. QX, I a would to share had would to to and numbers, I if realistic revised sizable flat the held it's up. which share sequentially, think

is, right and the which also had we data, QX. the on pretty into with I coming So would that sell-through again, say in now much line and based expectations

down U.S. industry X%. minus was

we and also in doesn't of QX. from much it's full last there's obviously, confirmed. change pretty outlook was sell-through course, mixed. to year X% to on think And that X%, is -- consumer QX and what parts, some a ballpark, driven moving know It our year that's baseline and we with seem all I ultimately sentiment be also

don't mortgage sales. existing rates The help home

a also people of the not is money, just think mortgage balance because see to want might still sales, being you equity, remodeling the -- stubbornly fairly consumer rates, existing they result sales home home of improvements see and don't soft. home high I leave have you resurgence people existing may bad, solid But sheet homes. new as a but

us. that's business and for more remodeling not more And to a trends you So be see I honest, think towards will bad refurbishment.

the X% So guidance point, industry right one. to this at feel we -- right is the we still again, X% now,

price mind, little, elasticity pricing an category increase, category let's to course, it As high-percent consumer's side consumers, it's consumer promotional again, in towards that competitive broader And pricing. first of living there's all, of keep sensitivity no given we're purchase, historically, to i.e., relates environment. in infrequent a is on very

we our right we do think for products marketplace. promotions, participate create valued what with for have and are we again, last a we moderated product is to business make very think for what have opportunity pipeline. strong it I And where good back the we price which us. comes year, value our work product And that And pipeline very and to do We in a think on the the of increase distribution gains have a volume. and impact we do

hasn't appreciate unchanged full I also for in of the price/mix your year. the I EBIT a a focus program bridge equal, same wanted At wondering on changed? that I'm would which I everything and be to on No, you're that Okay. the promotional net terms a just guess component time, margin price increase remain your else talking actions, -- X% been components positive. noticed why that. about cost.

end maybe logistics, on et you're net like actions some at areas incremental the talking the cost, lower Also, well as cost inflation cetera. the cost being as freight, about of

price/mix. of a on like there's maybe it seems upside risk little the bit risk of little bit downside So maybe a there,

Just of kind of the while changed some why the thoughts yet inputs components haven't some your on have. of

is Yes, Michael, Jim. this

we your the -- increases Marc here, the believe so out but do big would done at chime correct, as of back where order-of-magnitude they're drivers. are the And are in price/mix, called we've year. the end look I'll in directionally And as do but have I these it's believe the kind that partially at terms we price price first then as we'll of out and we later order see on in. Let quarter, say, the throughout benefit out, the the magnitude, to of in of we promotional increase of half also QX, we me start QX, you correct. point they're the roll QX, coming

range or use better look the right we say, the the to than the point as should it take end I'd least we get But half could be, higher but today, out us we As we're even the of range back at end we at it of that to going think there. year. a to higher why where do now, that to that's possibly

possibly right the cost cost at perspective, of range $XXX we're if as the to now. that low looked net highlight, are we closer million we're actions million, And end. a the the at mentioned, the I we we you did end probably of we would range to that think driving $XXX From say, do broader but low

possible So what all believe for actions we'll but some counting have know a better we each as of additional we continue our basis, that And other on second incremental now, quarter, will do see right the some cost. deliver weren't we year. a full price/mix, year upside most on likely, we do picture the but they'd we we offset in inflation get have on full the through to net

QX. obviously, Michael, this and just on of just that's add one, to maybe the nature

slightly are EBIT higher than first guidance, of guidance. America even now we you EBIT running different If our businesses, behind, the businesses, X is have North have the you and running which look right all, at but

now, I bit think at on this in to day, there's end of one. too parts, little a the to even but the of change the early yes, still the there's same think The about way right components. moving is kind move some

Jim's on that's the on we all, net carryover of sticky bridge, and North First not company on that's To additional inflation I what solid kind you costs more cost, the we point, think we're clarify, which America. low were pretty total deliver necessarily the to the demonstrated, end. think of I because as saw, bridge actually yes, with one. also But QX, this just

the again, better -- -- this a yes, a we full a in EBIT, But range. pricing, moving put which increase year. of of for it lot as there's with and which on together, still confident margin the On we But parts. we we've about part could guidance total be feel price all given announced, overall, that it

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

I like some in significant the just was units about asking you additional February impact would XQ off followed flat there wanted typical the It retail? start inventories. think relatively retail refrigeration? year-end. looks seasonal in It January destock how ahead retail by how pretty that guess you But build was much left U.S. to of the and a in I March, X And combine if months. at is do destock

Yes.

it's So Marc. David,

there you're destocking a of correct. retail the side. of In bit So January, was quite

a was little there March. think I on of bit back up a rebuild

down year-end, still would but slightly we're level particularly slightly bit environment, little the say concerning, and by still, large, I elevated. a versus So retail not inventory in elevated by

So saw end not back the reduced been year was because, there rebuild completely into again, what we March. some has of

make and again, And it's nervous don't it impact expected. I and It doesn't typically extent, think refrigeration should some seasonality. -- overly to me

I transaction. a the Arcelik about as guess I Okay. follow-up, you wanted just to ask

believe, 'XX quarters costs Your in can remaining earnings the benefit the equity how stranded incremental but the to represent that XX% of moves line, you full stake left would income this X I margin versus And the and behind over could of year year that for 'XX? year? full were those the resolve quantify what costs way

smaller. move P&L that. XX% Jim. And with to And said, is will the different be line being out significantly Yes, David, you start that will maybe obviously only stake now our this XX% as a in I'll and

flow see of And positive our is which level. through it you from perspective, now relatively a that If most actually trending in cost why corporate at you that? stranded expense right a look is line, would

operating couple a actually there's things business One, off of that in of Well, fully business. terms sell did there. we

the of obviously, that in transaction So with there for transaction costs remaining have being may -- that but some lot and stranded have you you're had, service paid have do costs we went weren't mean And of amount it. this, providing a also I we stayed. services we did significant those agreements, like where a them. a costs

at the we're that see. takeout and the then and might cost look stranded we when organization of like simplification we also that, then So offsetting we at look actions taking, any those that the cost actions it are

year because, as headwind cost we're to significant So I with as we for right taking this them. said, don't actions stranded see now, really a deal us the

fact a into there's out within not you but margin year-over-year and see look business what to actions improvement year type year, our most just carryover is come portfolio the don't we this, What because you will is in like so of at I see costs XXXX take have cost impact, partial we going will a anymore, as XXXX biggest don't dilution. thing. that said, big always because within dilutive when beyond, it's a the of have there's on driver similar this XXXX, you the When we that the EMEA

next takeout So that's type this the just about of cost this towards you of look year, of think what year, on started I from with year business. million $XXX cost carryover as you typically And prior we would terms in actions. expect

about And do that benefits to later takeout Now but we did from again, there too, we're as look going go year, a talk Investor trend multiyear component come benefits at expect the to assume we not you trend, some always that, these further this. cost you at year. that a -- in continuing should cost next into Day, because carryover is

royalty where David, the clarity, of maybe majority operating point, just that's one Whirlpool Keep Jim's sizable also for the to happening a the interest. in will being paid. in there's correct, cost because to North up Whirlpool brand. a show is is work That brand results in mind, and minority income add from absolutely America

North So benefit to there business. is a America our

say, important that that's point, again, comes on I may some QX and basically stranded The what The headlines costs, Jim's vast existing in other transaction. The think are note. this have you comment on costs were to of seen the and cost, to passed dealt we majority stranded what yesterday. in announced already to I we with, largely -- back is would very

We the that To to would are beyond also clear, significantly opportunity have have what cost as $XXX And infrastructure setup. stranded of we the now now organization taking a have simplified because costs. goes ultimately, and out have such, million be significantly business. organizational simplified we a been

which So would the there. stranded the pure way $XXX goes have million been costs, beyond

line comes the Champine Your from next Laura question Loop from of Capital.

clarify Just made. wanted you've comments to that

you on any this your And Does and X% say, views half. the in increase America? America North in So has to that the changed. in price impact realize, to The back market in then year increase that been understanding hasn't taking expect my have for is revenues X% share QX outlook in price X% announced. North

So Laura, it's Marc.

that what stable So and to course, depends impact then to market that's of cetera, the an revenues. earlier, But promotional would has QX expect and share the current and and that again, also of point, what overall Jim reconfirmed in I development, At our P&L impact, this which on alluded point the then net a subsequently. in et X we after QX on increase. also course, I market be price net environment expect

Okay.

is share share stable gains. as to So market market opposed

So share, industry-level view Is North in true? that there is your America. in change a not in demand change a for

to adjusting of short we again, that Right the know exactly with you in a when again, need production our market Well, everything responds will It's we and now increases, course, right. I hold price and your Laura, retailers else you're lot But think parts there's go midterm. to just, into to of what market, else environment. and that assumption still, you environment. happen everything see and are don't we moving that now, volumes share

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

Korey And on I Korey. deserved, new couple A post. to to questions wanted say here. the Well of congratulations

supply especially in in call terms there? inflation. more the more least announcement? of seeing potentially this alone function And so is widespread in, Whirlpool-specific, more seems First, the little North is partially sticky of may that you Or bit price you knowing the elements increase chain-related you're specifically be I'm you industry? weeds the a what interested price a in at of go increase in the America Can this in what

mean, Sam, increase as is inflation rationale a ultimately, Marc. we sticky price it's is the for I it. call twofold. One the

part is but discretionary limited. what alluded in The demand already Replacement to we is QX limited. is, demand simply is strong, very discretionary very demand the is second

economics sense just have a It's get don't economically the limited. just to from promotional lot of pure does not So make investments it math, investments work. you is than just just these lift the

components promotion why there's doing price X we're program adjustments. So the on

I some course, have one competitors' reason that extent, inflation, spreads. And We suppliers. is the industry I saying I'm rarely don't we we strategic see exclusive would and the P&L, of why it -- the logistic certain is which in components, assume know this but do On to see it, cost. sticky very it's

tail said sticky, are before. which of So which still year, the a broader cost now last as we it's right we end saw inflation,

point, exclusive trends components, broad-based to didn't it's to prices, happens commodities, earlier But QX. us. et these so not oil to its Raw cost. closely of material they prices, logistic cetera. Jim's we're impact So watching what course, steel are And

D&A guide, in can around trying the walk the ask cash considerably billion $X.X with my it. get we obviously, guide. then if cash net least billion. QX flow more And mean, my a working to it question, expecting, it we the to about to somewhere -- from Jim, the burn should And and in by I see to implies it And I so least what cash ops the there. say I the or $X at thought. capital Got math, burn than you, could at know, billion, million, a I from I it, QX. and second $XXX for gets operations were or versus first I'm call of free get of quarter cash income was don't $X.X

million. light about still by I'm million, So $XXX $XXX

help guide, if that walk least at Jim? specific get could a to So you to with

probably the think paid of missing is it's is out years elevated of more in first year, in that recent bigger year. of And prevalent in that with there and Sam, the the the the back half level that component even gets been probably you're promotions lot the of half in now of XXXX in some I the than a

you're see So $XXX flow million be kind to XXXX first similar the to and it's that's XXXX, going range. in used frame cash of $XXX-some in a million what time to quarter terms significant our we to of see swing in where XXXX, -- would minus the when

all And think so there. you had components the I

year. you As build we earnings throughout say, the up

first things within quarter, effects EMEA include the the the the does have and all of first We -- within EMEA quarter. certain that XXX%

would accruals the Some programs year but year. liabilities, of in we for out part build paying but the then all those year, the swing thought year, year, occurred is and promotional of throughout of come actually the that pay first early prior we then in that the the within big legacy later has of the that we some up the

which little out, on up flowing builds cash there's very sheet, it throughout helps balance year. us the So our and

we first out then And of pay next year, in the again. those quarter

compensation to that if And you're the driver. walking are number. programs and operate, $X that, you other I what employee like that have We programs like get similar things billion piece biggest think add programs promotional but there, your into closer you'll

So that's how we there. get

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

start correctly. margins, with to North sure I just want I back heard America to on the make

was half basis a points be will up XXX first I half. comment second think there versus that

the in be exiting half then X%, So range. kind would of guess Xs is that you're quarter the X% first of X.X% in kind will And be -- margin your XX%. still the north I of second half second implies that to the and

and be I around build and think second the start the in half, like the for prior range X% more expectation closer was XX%. maybe to exiting to X.X% slowly

second like off So a the the is the actually but backdrop year guide it base. started little understand more seems pricing, gone slower, I challenging, that's up. has margin half incremental your a lower effectively but of And

can just for ramp? and of better So the now walk help a asking, what another expectation in you guide just way -- of changed through us kind that

now me one one, we that's upon slower driving think we of did a environment, a we look highlight than in at were North of yes, as this thought look assume promotional is, Jim. let we actions. and America. creation that that the you going has thought, obviously, little that look normalized we in year, And pricing some of say driving at what at And volume couple we to, perspective the off beginning not points, I start we Michael, And it's things bit to that, did the it's value the is incremental we've America. at that expand the we North would did Yes, the take that taken that the from spend and not a where but

half. okay, you half only increase, still, price between add X% to a for for or portion margin year, of if just point full -- that back year, of the the a up say, of you realized, X.X when back throughout you of throughout but then the and portion that the that a -- builds gets type throughout back somewhere year X.X And build you a Now that's the half. in and the certain improvement that

increment as is, if cost takeout continue The that of would build. benefits say now see we to before, trying look we're we we're actions are, will second drive thing being we what is than perspective, we that. to a mentioned cost will -- we drive, incremental we stronger drive But thought offset to we see while listen, cost trying and from I to where inflation being

throughout build to we So the year. expect do that

is assumed pricing biggest we variable the But of now. what originally right

we where look and get started the to the you stabilize expect, do a see later we we least base the some now. year, coming year, industry said, we is see as also industry at if at do normalize some the off what hopefully in at Additionally, beginning the year, the we we and down of as right

Got it.

on and follow-up inflows. guess, a seasonality in the flow with -- half? the extent of get some This reducing the you're maybe that where see you you payments I build some of just as only the going forward, cash year, much outflows, those activity then being absorbing have typically the guess the should driver back think your the I the And year. you're to promotional EMEA then highlighted in accruals the get of don't the in you the back inflows half in Okay. flows And cash past, I question. the a we timing in

be that the seems of it in you've terms past. half, -- dynamic than the So in still is like dynamic the different half it that seen maybe first will a second

Yes.

program environment we think, have do listen, the seasonality you that they we raising at now things the get the say as because Black go still we're what is, levels still going prices, an would think be of than accruals December in they're be will still be to I on and in in promotional in programs, than are higher going higher the promotional terms periods, end that Here's year, just our promotional still to promotional where throughout to I you there's even if of Friday year.

EMEA, would it will earnings, we've and that fact the the So of on of back type positive correspond $XXX be you to flow, level these flow cash of mentioned at year. the year. think part throughout accruals million that the the necessarily the could look that a on we we EMEA without the is $XXX million half assumed we to have would year build in cash I'd this say other negative we said typically a higher and flow generate thing cash that this with you would a reason of despite our why year

Europe. that And was of finance programs, capital programs just of unwinding negative the the capital that some of had working working we in some

XXXX, where to this. you and for you This add number we to we So and that be to should we said, to to when plan for then go take expected did we it, can We that give EMEA year's start. where you year. expect expected is this negative next

are we free in capital where the you today And of cash year, improvement our the today. yet the the maybe year. end where in significant we thing drivers you is see will improvement will flow working flow, to where see end when highlighted I expect big from of in to to one that is And other that haven't get cash working we the think the we questions year. an the capital a throughout around

of Bank comes Rafe Your America. of next the line question from Jadrosich from

guidance? the does X% for business? into your assuming in Just how about what that cover? that following do guidance year? the it you're entire it Is up for -- America in just then you the And business are terms increase baking of the Is realization talk you net remainder on it you the Can of MDA North what of price portion the increase.

the So just let price reexplain increase. me

it excludes as said little by these bit builder-related which give [ other a America by covered North course, PMPs of what promotion not call, the overall, is XX% you of promotion programs. affects about So typically more, programs, ] earlier, -- our are it we the we or To business. programs,

roughly, you So is can board. XX% the assume about it's across

absolute course different groups. amount, The or of group product product

to case, $XX a $XX. in increase cases, you see So $XX $XX, some some would in

retail effect, and it that's the -- freestanding So business. the and particular, large -- across in board. It's but is structurally in

we building would X% said Now What net it X% to to bottom earlier, line, different about the realization X% a your we quarters. P&L for it's means increase. expect point the throughout impact,

the how second how relative do to is willing a you're you then some market think make? half, share do about start you but giving and to margins If that think market you're strategically to share, just And between up volume? improve trade-off in about Is that pricing that balance pricing? -- the

we say expansion, the is share assumption on to give distribution market share. basically last clarify, I to gained right that which Just based we market hold year. we we is which want and assumption said have, our didn't up we pipeline, built product the now, that

So ultimately, market share to from consumer. you a have earn

even feel the on value what offers actually market we And for confident share. provide consumer offer is expand momentum and you what we proposition innovation we what proposition which to one which and and opportunity the earned. last got consumer, as product, value we very really we justifies So feel that potentially through year we built a coming, at deliver being based see point to

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

follow-up lower and The points a question, could. XQ I if than expected. then X A margin around

X.X% it about difference? bridge and or X% bit, the what the the X%, talked You've explains that X%, between but a little

margin? which, In are America you talking or North terms global of

Just the American North margin.

higher end Cost we we thought. of thought. the probably little mean, weaker the margin was we at the environment we we North So would again, the said, higher volume where as start inflationary the was that America bit is than and promotional what what thought I saw year, And we but perspective. bit than say a one, is, slower little an thought, within we then right to was from a about

you combine So would all start. take said that's a those them, why and and slower factors we have had we

what and the And roll first are us pricing one the that actions see biggest impacts said, that first take side, planned. I'd probably the we that's of to we drivers, X needed things additional actions, within to quarter we're was inflation quarter the the is least say of we especially we to saw start incremental cost biggest forward. we did why taking you that the what top those but in on on told Now But as expected. sticky compared we the at

Marc. it's Eric,

Let this was earlier referring of me I of because to add just American to QX. your questions X% North margin one one think in

we don't absolutely region, If know, me, you give North is true. it's slower America you by quarterly a margin As start. okay? to off ask

intense, inflation some of environment turned X that Jim's when point, out the ultimately, think points, assumed. expectation reflection I we is offers was X.X to sticky our more a originally internal probably by which has to of promotional to be

now build a typically cautious, There production is a and regions, right element, we and -- QX of didn't of little a we're we QX we a also lot and most third inventory. in inventory, and building in lot bit start

has lack side. on So that, of course, volume production of leverage the

So these elements. X the are

promotion earlier intend heard how frankly, cost actions. also the the increase, but price we both address comment with additional of in You it terms to

Some of announced them we already.

to how America full year. intend make to we North QX the So in that's margin walk from the

the the now. question specifically I Day to And then to point, on is from price. the guess promoted Memorial just cut XX days

be told retailers going discounts? that to same prices be promoted X% keep to that your lose are you the to product you to have the What will have going the discounted real-time we'll and than Had for effectiveness? retailers you're other communicated the Day? space be less you products? retailers Memorial going You've within programs Or promoted your going they're your Or space to is to higher. have will communicated

Yes.

earnings why question from it course, of then understand call. asking and Eric, the while you're may go I a far too So

I on As it's don't you argue kind are -- of retails price confident right very would be typically or our increase comment now, that retail will successful. we individual reaction. we know,

with Memorial April may something. right our a went now, with shipments short actually, were notice, Day line expectations. course, see Of even in But how

overall, accept increase I that hope retailer the can't I comment So price reaction confidence you will would our confirmed on work. say, initial comments. I that the please, But specific

marks that of the So questions. end our

we're the all appreciate our questions. Again I to all, of First recap, QX. with overall satisfied

slower share ahead. units, what with North regions were recognize We X start. have which is in we to Our running earnings per strong largely America line even very business a expected. we of off all are

I heard from actions And us, think to actually margins. taking we're and guidance. year our the full decisive clear confidence, you we're rest reconfirming with also of that

So soon. calling again, a hope to in, you I talk appreciate Thanks lot. you all and to

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

disconnect. now may You