Whirlpool (WHR) 25 Jul 242024 Q2 Earnings call transcript

Good morning, and welcome to Whirlpool Corporation's Second 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 the 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 from of believe of our presentation. that operations. earnings non-GAAP ongoing our important be that today's these results detail they presentation indicative may

the for a adjusted think provide will better also analyzing you our baseline in with operations. We trends measures business ongoing

package information posted for directly supplemental the on our Investor comparable section to to directed reconciliation GAAP are the the Relations website non-GAAP of of items most the measures. Listeners

Instructions] [Operator

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

second expansion throughout is global step good basis strong points continued the an demonstrated and morning, expansion XXX margin expansion margin in We Scott, towards Thanks, everyone. of global quarter. XXXX. important sequential margin This

call. America margin also delivered earnings by supported pricing announced North in first quarter expansion actions our MDA our sequential

MDA sell-through Our confirms to our execute America as pricing confident trends America ability our our pricing share We're This North in strength delivered market full actions year. products quarter. the improving while of execution expected in the the with throughout for and our maintaining North reflects capabilities the and actions brands.

continue our MDA performance SDA of be Global with international pleased business. the We and to very

new our business. business. the potential benefited as growth line continued We're excited and to from this grow Global expansion direct-to-consumer SDA Our top and strong of a of momentum launches saw we about future product business margin

potential to in meaningful growth gain In Asia Latin countries we continued we see and MDA key long-term both share to businesses. in and America continued business, our MDA

track us this to year cost organizational management million We takeout successfully completed achieve cost $XXX putting guidance were disciplined full and quarter, million. our of on simplification with our $XXX our to

confident including to cost Day, business, are back automation we supply input are our additional costs levels. shared chain optimize opportunities efficiencies, our Investor takeout there to as pre-COVID ahead, We across our such continuing and as manufacturing at

Turning guidance. to year our full

sales are by billion reiterating to sales home rates, the replacement U.S. and We overall mortgage led offsetting discretionary flat pricing strong and MDA which $XX.X continued have product environment previously macro launches, international the strength North in our driven net elevated announced in of actions new demand. weakness demand, challenging America businesses given continued in

revising market X% discretionary as We full EBIT ongoing to a are our margin from impacting soft from continued pressure negatively. housing price/mix previously we year X.X% demand expect

announced a solid expansion sequential However, ongoing rate approximately previously a and X.X% earnings to we to cost of at the with pricing same deliver expect expected QX. margin deliver $XX this are year. margin EBIT per share in actions takeout turn, time, ongoing exit In

fundamentals are As confident our our ahead, and of long-term we the favorable we look business. strategy in

existing U.S.; remains X housing of the are the elevated of top equity U.S. which the multi-decade home unchanged, market highs; values, structural given all-time well-documented houses sales XX our home of undersupply view a in with position and at builders. strong Our lows; near

year an We support which lineup strong eventual to And about, new excited will a I'm are positioned of benefit of strength brands. our to well from that innovate continue have the very this and housing we personally rebound. products

the net will sales, increased an excluding Turning of Europe quarter X% to quarter. the overview second Slide results. X, I in by Organic over provide divestiture, our

decline environment carryover with but resulted by was continued was price/mix within North track. unfavorable promotional the in our actions in second the quarter, negative pricing businesses impacted environment, along on are macro quarter, offset The partially still SDA growth which discretionary across offset fully This the which second by normalized half our in suppressed Global international the expected and of XXXX America, the taken demand.

delivered the margin expect representing half X.X%, of of ongoing the points, sequential to margin basis which expansion earnings we with $X.XX of continue XXX second solid We ongoing per EBIT year. share throughout of

in capital a $XXX Within free the progress year half of to year cash on basis. full our to meaningful We made quarter, we in remain improve inventory of the generation. in second flow $XXX deliver million cash approximately working on management, resulting and million ability the confident our

As cash first $XXX impacted flow longer transaction to structurally strengthening of flow a This forward. free nonrecurring delivery results impact Europe in associated our reminder, consumption the was no year-to-date negatively cash cash our going in with the quarter. million free million $XXX by cash will outflows XXXX,

Our flow return delivery to cash to and is our enables shareholders allocation free cash to capital continue us unchanged. priority

$XXX dividends of dividends, million the steady Finally, in expect to increasing shareholders second nearly share or continuing the form our paid this history we quarter and XX-year of $X.XX return in to year. per

the second ahead, improve comparison lapping a second as X, Turning to EBIT half sequentially second basis look the to addition Price/mix half resulting will our by more we margin impacted I points to promotional a Slide actions in normalized mix price/mix XXX environment from drivers. of expect negative with unfavorably discretionary lower executed quarter margin review ongoing we pricing from demand. XXXX. And

delivered point of actions completion led expansion takeout margin the cost XXX by simplification Our organizational our basis actions.

did materials have meaningful quarter. on raw not the expected, As a impact

KitchenAid invest technology, such marketing as and supporting the product to semi-automatic launches continued fully in and espresso machine. We

currency as dollar. to negatively margin Canadian foreign impacted Brazilian weakening relative U.S. real the some and the Finally, dollar the experienced

point Ultimately, sequentially we the EBIT in ongoing second to X.X% quarter. XXX margin expansion basis delivered

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

morning, Marc. Thanks, everyone. Good

second by I'll unfavorable down X, business. Turning America to MDA driven were North sales review results for Slide quarter X% price/mix. year-over-year, our Net

expansion. track Our actions by actions EBIT as basis on sequential positive turning June. These XX pricing drove price/mix evidenced of in fully are approximately points margin

EBIT the margin for X.X% quarter. delivered segment Overall, a the

X%. XXX sequential margin takeout of that actions We of pricing expansion to greater and than in quarter points XXXX and each of QX EBIT drive second half approximately expect our cost the basis a margin continue expect will

an X, update Slide cost on remain to on provide which track. I pricing actions actions, Turning and our will

As investments you in quarter, volume lift. were achieving current of discussed that replacement lower demand incremental not promotional recall, The U.S. promotional limits brings strong the last environment mix may expected the and the we typically a effectiveness.

effect To in our XX, pricing a went to in address environment, commitment April America, announced demonstrating promotional to on which value-creating only MDA increase we weighted our the X% programs into average participate North promotions.

are We pricing in confident actions. our

to have weary fully see expect expansion by of the impacted our to driven demand margin continued depressed sales consumer, existing basis points be margin already the XX second net quarter. the have third we we in quarter price a home in sequential discretionary from realized and Although a benefit actions and

our chain, noted and a of in first earnings, persistently are slower cost As our quarter realization supply we impacting inflation experiencing actions. with manufacturing incremental high

track the we remain XXXX, end deliver in While lower trend of we cost to million the $XXX to on range. to towards $XXX continue of million savings

these simplification The North expect We realize of fully XX%. quarter. America early benefit organizational MDA margin third portion the to this in in the actions from approximately completed and May is our

of our the cost million majority second half and the approximately to of Despite and half. in $XXX expect in deliver supply delivered takeout the XXXX, manufacturing we of takeout initiatives the cost we macro environment, globally chain first the

offsetting MDA America sales Brazil price/mix. XX. The currency, strong saw of unfavorable Slide growth I'll year-over-year, results to industry review than excluding driven of Turning Latin business. gains Mexico, segment more by our continued and both and the share XX% net growth in

We delivered a of quarter. solid X.X% margin in the EBIT

strong growth from gains. a very Turning review our significant sales continued quarter share XX% segment to excluding Slide industry by business. year-over-year, I'll driven The MDA currency, and growth Asia the XX, of net saw

a driven fixed by sequential delivering actions cost EBIT expansion. significant X.X% delivered year-over-year margin, We strong margin our leverage, and cost and

results solid to direct-to-consumer net industry I'll driven Slide business. excluding by our increased launches SDA in product Global Despite XX, and sales decline, Turning growth year-over-year, business. for our review currency XX%, new the

recent volume of espresso actions EBIT incremental We delivered through marketing solid our launches. XX.X% product partially offset cost a investments by margin and for growth,

SDA profitability the occur. in the well second of we X/X expect positioned the approximately selling for to The year where of and demand is business season half its

XX, I'll guidance. year XXXX revised Slide our to Turning full review

sales $XX.X of guidance unchanged. net billion is Our

$XX our earnings ongoing share year full revising million. free per our approximately refining cash $XXX are and to We to approximately guidance flow

in mix product our by low and suppressed America addition, is sentiment consumer sales. home North In impacted existing

expect As to X%. now a a margin result, we EBIT ongoing year of deliver full

rate. Our updated expectations adjusted for tax our also guidance effective includes

we we Now planning rate tax Europe the year X%. tax the more full estimate ongoing expect strategies. appropriately have We transaction, of are able now negative an benefits that approximately our of closed to

approximately EBIT takeout half such part by points XXX MDA pricing and efficiencies, and progression strong the of On across continued North sequential Slide XX, in we incremental margin seasonality. track actions international of our margin. reductions is ongoing The show cost global manufacturing SDA complexity expansion quarterly businesses strength actions, second quarterly our on driven Global America as the basis

expected Our exit EBIT approximately a of deliver operational are execution to QX and decisive actions X.X%. margin

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

points point We continue negative the the have XXX U.S. demand by lower-than-expected to impact, by of XX basis updated a that product/mix into second a to discretionary basis is driven price/mix expectation expected reflecting our in negative half.

of the the $XXX the expectation reflects cost range. million lower to takeout Net on million of $XXX end delivering

anticipated have slight a at full Canadian XX due real for dollar. is to year and to impact currency basis Brazil weakening Lastly, the points

approximately an EBIT ongoing now We expect margin year. the for X% of

expectations. Turning created updated North to to restatement approximately quarterly flat. has total AHAM Slide our segment America, review industry we expect I'll of XX, comparability issues. now recent the Globally, information In be some the MDA

year-over-year. first are the of results in approximately of we links we reported AHAM to half down X% in have sell-through results experienced the year-to-date the alignment well XXXX. However, with This

remains demand strong. Replacement

discretionary However, experience continues headwinds. macro to demand

to flat we industry result, remain expect a for year. the the As approximately

expect demand both very Mexico, recovery to X% in MDA and has Argentina. to up be Brazil more a Latin X% in industry challenging offsetting seen now environment in America Latin economic persists We that than the America. significant

improvement to as demand Asia industry expected. we MDA see unchanged, as remains India in continue

approximately continues be Finally, in to impacted U.S. weakness to SDA and be discretionary Europe, industry resulting the by flat. demand in expected the for year Global the

EBIT demand We the discretionary negatively the reflect margin to in impacting price/mix. have U.S. softness adjusted

EBIT QX X% a North margin We approximately year of America of expect margins MDA X%. approximately with full

and Asia, With the actions expect and MDA X%, and MDA Latin of approximately we respectively. approximately in cost X% higher EBIT now margins growth share America strong

XX.X% remains Global's SDA of EBIT margin unchanged. strong

to Turning I'll free guidance. review our XX, Slide flow cash

consistent have our updated full EBIT with operating accounts year cash and We other guidance. earnings

new in XXXX. We expenditure remain XXX-plus capital products have further confident expectations and in refined our launched achieving

In the versus over to the of an improvement on our quarter. leading second quarter, capital, cash working progress million we made first of meaningful $XXX

further to reduce expect As we through inventories. we move the year,

and the expect receivable also to the end similar throughout XXXX, allowing the cash free of from capital to half us We levels of see year. sequential accounts at payable accounts back working flow deliver return to

impact restructuring the updated of the we organizational previously Finally, simplification announced actions.

expect $XXX approximately we million cash year. Overall, flow free for of the

Slide to XX. Turning

actions to completed a in majority India's quarter, Whirlpool Let outstanding the balance In We've shares capital me interest. XX% completed to of priorities. recap our strengthen we our retaining of our first commitment allocation the sheet sale XXXX. while

the than Additionally, in generated cash. $XXX over two Brastemp-branded divestiture business more generating on our of of July cash. water million of closed Combined, $XX Brazil these X, planned million filtration actions

dividends in cash term $X.X debt pay in April. million approximately of $XXX we are initiatives by and free repayment beginning our with Coupled generation of positioned cash $XXX continue of approximately our reduction demonstrated $XXX million a and well flow XXXX loan million, billion hand to on

track With these actions, priorities. allocation capital on we our deliver to are fully XXXX

turn Now call I Marc. will over the to

Thanks, Jim.

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

have to actions. in by primarily pleased delivered North pricing expansion and are We globally our America, margin sequential driven

a and continued executing are but strategy. in We our to macro navigate we're environment, soft confident well

$X.X incurred simplification have million XXXX. XXXX cost of alone organizational We in million In took of we and delivering in challenges. fixed relentless cost out and over since XXXX inflation with addressing billion the cost savings XXXX, $XXX been $XXX we these costs

cost savings $XXX We track the achieve $XXX year. to of for are to million million on

And continue to manufacturing significant costs additional take out opportunity we look our see as through input supply of forward, and chain. products to cost, we

the growth for well particular, further And At will the and turn eventually business future North housing America positive. same with time, is market in soft macro margin and positioned environment, expansion. our U.S.

ease are There and in demand consumer been in existing and we market. seen of demand. hit and still since at downturn XXXX. point housing home multi-decade from With discretionary we We've will doubt improving sales well are benefit XXXX, and point that the lows rate the this U.S. at some no intensify positioned interest a XXXX is reductions, low have to

expect remains than strong to of to continue base demand due pre-pandemic which we increased its this appliances, Replacement usage and installed and remains strong, norms. higher

navigate America a have and challenging right the we business. in Overall, priorities to environment strategy operational our North

Our for growth previous expectations, businesses our to international very perform ahead runway market a to to SDA share delivering long overall and be portfolio. These businesses important gains. continue and of sizable have continue

Finally, and expecting half cash are the we significant in in are strong XXXX. back the of delivering quarter generation improvement

a of We approximately have cash $XXX the flow good our target to year. line million for sight free

We continue track dividend allocation. attractive record capital cash our shareholder-friendly have to long return to shareholders through of a and

are shareholders. for to long and short and both strategy value are We taking our the confident in we our for steps term deliver

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

Sam from of line the James. from comes question first Your Darkatsh Raymond Instructions] [Operator

North America relates Two MDA. to questions, as both it

originally XX% segment How And you fourth take to to exit do figure would will what then XX% be achieved? you it specifically levels a were a XX%? that or XX% rate And for in return I've follow-up. the those at to long the got have margin one, First or looking quarter. to happen

previous The recovery. that and mind. we delay me take That in X% the roughly driven points which issued which we let which had XX% basically So is different question. exit margin, revised a the entirely housing to XX%, all is just to by of a Sam, guidance, from

happen. how X ended reductions you will people, see actually the will rate like As X probably be that assuming, know, there we many let's other many year and or interest

about So talked of in the you our a is in guidance. reflected delay recovery, which reality,

your or what recovery question Housing So when the to to needs happen. to is it answer simple will happen happen? needs

our because the and As builder you in know, to is a getting really recovery of housing rate. element channel we're disproportionately benefiting run this in from any important strength that

the the what price to same market needs order do own we'll we double-digit to rate can increase, in recover this meantime, promotional aggressive again. cost but the housing in in was stance at do from the control. take our Now we There action, to get time run

is margins, expectations such American there. mix cut me at And North least to Got was alone my answer you. actually a second question the least notable that large to related to at previously. It your created versus

a price, guess, half margin XXX typically basis from -- high in to in which trying what would inhibit rates that to your the benefit a informed get interest early be, process I it points-or-so you're trying such to the mix? sense and Just for especially at could a until your of of rate level, mix raising of back knowing interest a pause assumption originally guess, waiting cuts stabilize. actually give homeowners they're I

originally benefit trying positive So in to to back why mix the be expected sense I'm a was of such a get half? just

Yes.

on first not pricing, I regarding discount there But there's the year-over-year come side. of as like-for-like know, was of originally in And Sam, pure definition, and versus sequential back numbers. going a have and 'XX, been more a multiple maybe So will obviously to very of perspective, half the mix, carryover of promotional the first we elements all, visible a on just lot meant, pricing second you the in half, differentiated change. obviously, visible year impact deep in full the than and by assumed that price of

of we that that frankly, late first drive was issued pricing. one originally go-forward probably our fully of benefits We even the the than element, impact that our June see business as So will, we into quite know, was promotion bigger promotional the changes a price and assumed. April. also But a in program you half, in bit base, coming on which

now you this even of right in have question I you and towards on, in the almost on going pointed think The going mix. about is, What there's one report dynamics your your X part second offsetting marketplace.

the replacement You very you're now which against higher have, usage numbers. good one strong, hand, appliance and driven baseline on market, also is comping by

a with it strength, but a And so weak that's mix. comes very

of the has Just of The X fit the to typically product or them a replace machine washing get point, to bigger a or refrigerator because in don't typically consumer. or it to wants cut-out lot who have to kind the higher think to new about [ technology ]. explain it opportunities X a consumer price days,

the or side you beginning that changed weak existing that's really than assumption. And now which have right planned of would home course, demand, bigger you the a bit kitchen, see the that, The much, And fundamental versus quite the designed, opportunities. element side, have other mix comes year industry of overall really weaker discretionary remodel is moment sales of a has discretionary the or is The weaker. the you housing. even on much, a much numbers, which with side the it's new

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

can posted seeing follow-up I North a have AHAM, restatement the completely the point as but that have And stable competitive so to activity a talk Just America. maybe Because the to like you you staying competitor retailers do on levels. that you're about Marc, out looks some response understand of trends. and heightened better on far? your at your it promotional may be competitor one talked

more seeing? just implied a you on guide? inform what does half give that you're Are people your could your actions? little second So how And us following color

Yes.

industry let and So program maybe the me Mike, price just to our respond promotion results broader a of changes.

think we data. in more as there's industry, out, reported some and you industry broader reported noise of report, the your analyst than in the been usual I also pointed So own

not As QX different also the data you a slightly we and in industry have we picture. QX, in representing were know, exactly

X% by competitor's minus investor is a roughly this I've confident seen on communication year-to-date which, the So similar. relations way, what base, -- the very the number, pretty we're on is minus volume

probably ASP down much the quite points side promotion of a on pretty and because the market a on more unit, side. So the revenue on price bit to environment, or everybody

program April. came changes We out price our with promotion late

full -- in said the one the our before, see this positive As impact we I starting June results. impact of

much kind stabilizing want come program year-to-date, in of share course, you're launches, your very volatility we stable. we end And we in course, much full feel have noise. And see market and of year that our frankly, be also good promotional, share. QX, to these quarter. But some expect which promotional market less if changes product knowing you with so, so the whenever because And the pretty you our out of of say QX about there's towards not will you

what I honestly, you do. do might can't tell So the competitors or

You've And ask And what's them. for got the is margin that do right expansion. one. pricing key on element course company, to continue is a we this our in and of

Got it.

question, my the taking and bridge. Okay. just that And then second margin maybe back to

of of out know to us help just the pretty from terms come half walk. XQ, X%, steep there's a only the price half approximately that In actions in just quarter you I maybe still the it's in Can because XQ. getting walk through helped your to so still X.X% bucket

So cost-out? incremental to to XQ? the the is how price then And bridge benefit kind much and of get from from How remaining up incremental is the -- the by benefit X% in much the the actions? what's delta the

Yes.

is Jim. I Mike, -- think So this

you've the got QX. results take partially in as there, think -- it, I the thing only and pricing, here partially because in the It's it's but only in. you obviously, the first components

part then the approximately falls. in, get this. coming you of. It. cost benefits cost you the that me rate obviously we're remaining a at really And would that if XX% the full So is the heard look seeing, say once part that's and of that of QX big in And you have run QX,

falls much ] pretty bottom that America the line. [ it's part of a North to prorational So it

ramping benefits sequentially cost cost And second we here a lot those our actions of completed as are here within quarter. the also, up

you So the until you get quarter. the don't full get third run rate to

from many So in I expand the exit think X% X% to you cases those the rate. drivers terms think equal the us can in about of that about

half. which point up extent, Michael, it's echoing Jim's very sitting has in the now one America, towards been in That our results. keep skewed is seasonality, the showing back margin. heavily element, domestic segment is, Marc. historically in would small is North There's a additional the appliance profitable That just and have also business some to mind European

that QX, So profit, comes margin in skewed business another and that heavily which obviously, the also element which explains QX with is the walk.

line of the Maklari from comes Sue Goldman question next from Sachs. Your

back first level you relative be you that of realization color, can going given to price additional that North for us but the question is the X% quarter about normally there, of think price/mix? down talk give don't where promotional fell you perhaps any details the helpful. I know increase, in a would I America the shift reported My bit that in to

can Does given implementation are come realization to had through? And this that that that you seems reasonable a -- still you to seem at or to like then we Or the that it goal? X% comment initially still and has all that started on, changed X% tracking like has way targeted? the

the to number, market. North Yes, by U.S. without getting It's both Susan, pricing, but North year-to-date also call the year-to-date, with improvement, versus lion's the of exact America now share. share. the was lion's America in heavily America driven negative North is And the North May American details the it, global

we so, promotion that half and the back fully from negative see carryover, we turning and environment kind to May we June. say had that now want last from of we turning price if And in fully late in significant and saw year

America. And benefits. to by definition, QX QX that the So pricing we start returning will also trends positive feel sequential good North in now very in certainly, about, and year-over-year

In which earlier. we're that terms referred we net impact, net fully track a on to impact, of towards

what communicated, that's That's and remain So very on this has we and the about we're seeing. will we what feel good what team disciplined done we one.

them over are the markets a with you contributing? where think talk the when closed deleveraging July. that bit path mentioned about footprint the the you And you Brazilian to given time? helpful. And you that, the generation global cash in have all how That's then these that assets of And sale about you perhaps about operating? think Can Okay. today, you business, of early the

back And you is right the say Latin Yes. look our our I would performance America seen first business. half would step And this as of I as say on year now, strong business Susan, at both margin in what Asia Jim. you've you really and our if is well businesses the international

on both full of unlike basis, for because past year cash will but cash business, was so the a EMEA a and positive what those about be And was of generators in that us, our investment talked with continuous more that we consumer, restructuring.

you On our the own They Asia leading generation. generate higher our Latin in They is both positive generators. cash cash right that we're other support margins higher talked and that today, about but cash enough And actually hand, don't those to markets, just restructuring. are absolute the we've growth the investments. significant growth America businesses think if about, seeing to their require now

So of perspective is they they about EBIT about a take of to in other flow significant And type think they there's make free generate working from are tax we them. that, it, positive capital. need obviously of seasonality have to year They cash-generating then what perspective an with one take full easiest generate But businesses really, outside investments a those the basis. on affected, what cash for and just no them their you to us. that's way just from and if some

adding, maybe deleveraging. question to just the Susan, to this And one, your about

far change for pretty which of we terms from though we we're seeing in kind capital away And did 'XX. would see not what much giving fundamentally even 'XX. 'XX we in before, we're are As guidance, allocation also what that's you've seen of

think dividend, down And $X.X absence shareholders, shareholders. want similar assume and discussion, cash we a moderate right in will Board paid returning to to good what very reduction that between long-term through mean we returning now I have very we largely a attractive but again, a would of to be And billion debt. have of a with balance in attractive continue to picture, having I attractive we is long-term and debt 'XX, very cash i.e., 'XX, be very on that I and of

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

long I the on I consolidated talking about for a guess X% your high-level basis end for thinking of XXXX And XXXX. us to guess, you here. that a year bridge strategic sort seems price/mix a questions put. Marc, getting raw and the But but us couple talking for you're X% of materials? can we're number X%, for of guide of you net given had America, for margins just X% how margins just you're North also again, about And can cost bridge -- it like of I just about using

Yes.

to a of obviously too But you David, question. So I what your mean, it's guidance early yet you're give fundamental I a there's 'XX in implying that's because drivers. think couple

yes, actually would if point horizon. time over pace. margin see, X.X Yes. point First another expect by we're you mean, split on I all, a I America of directionally, on of I BUs, it to Asia expansion track. are we business very Latin X well our think the good But and our

we're business, level. small -- very all it's about our actually mean, domestic a XX%, healthy appliance XX.X% to or operating On is at I XX.X% which growth.

all Investor at to you is even very Day, that frankly, growth. it to revenue versus what introduction, that we And continue strong. we met we kind in So when And be shared with with strong. growth expect the is very a about product of

'XX. out of and an and we SDA we see get has the the on to is margin that 'XX our as element growth important the overall it which business So impact

doing have housing as it which on need North pricing, be in North The one market. about things the costs, a be that of you on from that, And things bridge. right support we know, how in the point, and some all But America, we're turnaround margin key America. we will will element of right core at yes, we're doing to the also

are now, so looking on much margin also we pushing course. towards really growth. revenue North probably is that not We're is we're year, But the right America and next our for expansion,

Day, and to you of move really we to kind said, I Marc mean biggest to if just Investor what to this is go cost. was X% Jim. David, X% add from the And -- highlighted back

now the it in difference business the that the within lower. highlighted of the X% better would did what XXXX. Xb% Marc assume mix of We much Now that the is discretionary slightly would right America is has the and North part between be be kind and -- earlier, been

that you is do improvement that just an level assumed think expect XXXX to XXXX. only now I can between and in the we

still from take simplification was intend and continue will And starting to that get within through where moved, of our cost we out business to the biggest over multiyear you then so part helps the it this point but a period. be that

guess, in there's just been of talk helpful. goods similar comment sale. envisioned just mindful Or Whirlpool business I'm would render rumors. America, domestic commercial with are domestic goods be that, or right whereby in market the exits, the of also price, a Is its most That's there all sale. for asking clear, to Whirlpool and that, in scenario America market is being to of the everything white but transformation you've a strategy? and dependent North at And asking for you, Latin not I'm business, not I your just and plausible it commercial appliances secondly, X so the small white Asia inseparable? the them appliances, business small on is appliance the what business core economics and to goes forward appliance on

Yes.

earnings out, do we're on well We've is rumor. beyond rightfully that of or we first question, call. you all, point done as and an any going a not that David, comment speculation never to it, going forward. which goes So not But obviously will probably

we've businesses, our the I right their it you Europe it step couple China #X. even [ in just over think at North InSinkErator exception, is in it be be the market. critical attractive last really ], be element if and have divesture, the all years, be Latin the but is it America, we portfolio what may India such which back growth be segments, or the it now be [indiscernible] of America, the SDA, an is, we're done transformation, India look respective

forward. pretty #X many a good And much have very, -- I and operate. companies now everywhere base portfolio, that set will have of claim who can don't businesses, in we going sustainable So being we you we very our think find is a which

Right as bit Latin synergies. There America there -- the of bit bit North quite quite is majors a on now, SDA KitchenAid of see quite and example, particularly, we a between connection America, is brands and a do you about, KitchenAid connection think a for of versus and there's our business.

there So why business all we of we strong transformation, we opportunities a that's elements. growth now a lot among right very have -- core with portfolio have is see strong connector a going forward. post And these

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

meaningful category any the there in a business or major by shift mix appliance in American brand? Is North your

we and in much in discretionary what period for naturally area Laura, about a maybe what can't because, you consumers I would replacement say to from looking without that a had premium replacement. is we've with to super premium terms a such more talked or as we're duress in again, mix, I'd of mix at the also things drives as lot market, that coming the it's are live little of probably at a the the not being that of short got That is bit going and we've consumer away the of seeing shift more terms as of more look shift terms in time. gone a top purchasers if suites in products the as selling at lower say sales and certain of is

perspective, you to will perspective, -- bit a dishwasher it consumer perspective, can So a see washer help as a a from and a longer or wait such a where product. cooking replace a little obviously, but something refrigeration you from laundry also that

driven down So now, are but the much move does replacement that which just some it's right by of more we really a market discretionary. it's mix some being seeing again, shifts that's and less

Got had then in raw I get it. your And raw comments quarter. also know that change you back curious costs the you're raw pre-COVID, I'm but on in about to trying to materials. materials no materials

all that's for we to there? me. should when So improvement And start see

Marc. it's Laura, So

referred previous didn't change assumed. we to year basically see on assumption to raw previously we a And full it's positive. lot So hugely negative or of versus be basis, the neither what usually a that we going material

So little bit give let more a me you color.

a steel, shot. source or #X source long our know, is material material -- raw you As by

billion steel. As a on buying company, steel of $X we're to depending up prices,

So our lot massive. versus there's change assumption, now. it's And of yes, not a

color steel either huge an contracts. this a We some some on are on change we're in or one. larger this and parameters, see one. or you a fixed annual are give regions. contractual with bit didn't on America, don't were moving North very buy They trying little get to even spot we which longer To to largely on these in more rarely But purchases,

hot right there then confusion -- Now between and and of there's -- lot rolled a now cold rolled. out

right steel, a gives cold-rolled the contractual our movement is direction. it's benefit the there in massively. but now setup, finally even little some in On not bit It more us

pretty stable. Oil been and plastics have

some we our not So negative on other some for like insignificant zinc, businesses. some elements which saw is of impact

wash. But overall, versus a it's our original assumptions,

right tailwind. means Now materials that on we significant now also raw don't have a

a but it think you to big one. I'm early 'XX, As obviously too we get tailwind, small is about on say, a may counting not

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

the just to not I mean, I fully fact to talked mix. I the a time, wanted it's outlook. the that has in back, different discretionary if obviously, you've half At obviously, guidance just make behind come the and of ago, the Versus to wanted back kind prior I'm primarily reduction about margin days year. change significant XX it's apologize sure American been driven North fairly same demand similar But this questions. the sounds appreciating for drivers --

of of or change, the X% X% to before want that perhaps leverage, American guidance the there's aware new any that from consider drivers outlook if versus backdrop, guidance if there? just pricing before. to make should it's the relates we're North operational purely as other informs if changes assumptions down mix for we year that you be the that to So factors of there's sure Or the shipment of slightly have it other understanding any

Marc. it's Michael, Yes,

there's rate change the biggest me guidance, versus single course, was would happen. see terms: didn't 'XX, it's the rates, start always would in we reductions, a people, we -- like in of but most and simple original let components, based very that lot not So that of recovery is we assumption assumed, originally mortgage it okay? and seeing housing therefore, on happening, the and interest a That

frankly out, actually Most which, overall home appliance sales, driver that back existing we million counted times existing X demand. the million half, X.XX our assumption. we in the point is million in the would just happening. X.X not We but sales home guidance And the it's visible it, did original is of units, number more was single on dropping to have what not as biggest several to in now, have

Now it but will not happen event. point, 'XX at a it's one

So that's the single guidance biggest driver the change. of

overall that, yes, result an of of have a slight industry. the you as Now decline

You cause have subsequent recovery. of #X effect, mix, all of delay the the a the is more housing negative but

the the half North is America, from pricing versus the fundamental in driver half with huge part between of half, So promotional of improvement what carryover the in second half And first the half. in change the margins second in become that vast first June. visible had may majority negative XX% late pricing we of our a because is and we second that the in corrected actions April, explains first that

X% more guess, on positive I revised appreciate second SDA from industry you note, to perhaps to right. the flat. that. question, X% a downwards outlook, Global the All I Okay. roughly

earlier I versus perhaps year think, maintain for XX.X%. the outlook. by impacted your you've been probably margin outlook mentioned, discretionary you also spend prior to reduced But as able at

similar the from market put you've growth despite curious you that into the allowing gear able maintain a fact industry. in outlooks that is you're own to and sales a just if there's that other weaker If to to a margin that been maybe outlook drivers are backdrop. softer your are growth due margins executing I'm the to sales And standpoint ability still hold

the it's, factors that part able your in first growth market execute fact, a the perhaps of your to softer still in backdrop. hold on But margins sales and deliver ability the just would prior love despite take with line just you're and to expectations

Yes.

of So and our It KitchenAid it's domestic. super in is brand business. a Michael, our probably is probably strong the both small SDA we strong but And brand diamond. in portfolio wholeheartedly, majors like brands, obviously,

And automatic maybe appliances, data $X,XXX that on industry On for simply is fully where and market has domestic other SDA small toasters, to it low-end by you very small cheap than majors. to such that's when the on honest, driven espresso refer diverse a the you the SDA -- relevance be hand, machines. market the have less we business industry, has have

So it's a spectrum. wide

disconnected bit as more segment. consumer I industry little I trends broader the a say why that that's would industry more So I'm from -- we're say, a trend. in confidence would broader

only innovation only our it's market with Brastemp, it's just selling demonstrate which $X,XXX. you between evergreen I the But which to not we business, kind launched, we meaningful not but it's is what And SDA automatic espresso the itself. product, fully the think bring of $X,XXX maker, -- strong and

not it's any So by cheap definition.

and sells. you consumer is a know it it small the Same grain a good But cooker, and super thing bring rice has X.X, I which segment. innovation on rating of

ability market. innovation to demonstrates in the sentiment somewhat market, I meaningful bring our it, sells. You And that a call SDA think to why disconnect that's it ourselves broader, with

great KitchenAid SDA. more rate lot innovation run a actually, lines, also probably half. we we a marketing good it coupled margin bring and in QX, for in a we quality, margin have the in you theme the -- You see and throughout sells. have continuing invested with we brand, that, And expansion, the strong back Despite between same

This that I X grow strong So margin. the is how we concerns all a about Honestly, business. very much have their business. is about can

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

first. Yes. housekeeping A question

that with then Is second it's does Is that and be American thinking Just half I'm reasonable or North the about X% missing? market something or it first X%. full should and -- talked about year the you've revenue, suggest half progress revenue North math we there roughly in X% down price. looks it flat, the growing being like is American

Yes.

a much pricing decline, a So element, units. big our that then kind would There's down. of you color mid-single-digit down directional pricing just unit carryover, revenue a is is Eric, have carryover. small mid-single it, which the And on digits. rest the year-to-date and I say, of promotional X/X of, is call pretty

less than have in bit a little we obviously So decline showed revenue. is the unit

we now start same the flips will against the as comps the year because we and getting increase that last half had positive look at price we promotional And and thing stabilizes. second

first too wouldn't revenue a half side far, I had realization change. the side a the unit of between second versus the price On difference which from on much the sold. coming expect between -- trend and the we is so unit per But

comments then bit And also secondly, there relative on to market share North about market made full of comment then share a was America, and a market about greater stable in focus share. on a year margin

what looks path just talk about share or gaining what even you in XQ? a And also just from trying that North and love bit strategy to America. market bit I'm strategic holding sure a be the of back little share what the maybe and do dislocation to in half you're make would to to on little guess, is plan your framing I on in

high one. degree share so this year, Yes, this confidence we and are said before, we market hold our Eric, -- we we on have as to a planning of

promotions, if don't out the Now typically the for because get market, -- a replacement little actions you bit. invest all this in replacement heavily wait holiday change why it zooming July a doesn't to get X reason lift The price deal. in consumer a promotional you was we fundamental did

than now So right different in on the promotional fundamental just economic return you comparable get year. investment any is

term? expect you share good of it's market Yes, pretty of do exited we course, some share the And kind volatility about leveled short then we out. in in already market but feel the June. in So how

pipeline. The driver launched in majors the product North is which same stable now a products, share real at big also promotion, market America. time, we strong less have we but of maybe The

We QX coming in et cetera, front all-new will cetera. Whirlpool washer loads, et front-load have

it pipeline a we have and strong sells. So product

market on So why our share stable. being the that's gives confidence that us

recovers, business. of market factored yet course, our in moment 'XX. keep The will lift on but any not housing in positive housing strong a share disproportionately which come builder because that's on of would the that share, you not with automatically the impact, does side, have the And share the for get mind, market

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

-- of you some Is there wanted just to way far. made the business? us you've the margin replacement comments about and between ask understand the could help business so discretionary I the the then any different difference on mix

where can just then of we how where it's an much business get is historically? so is How idea that discretionary now? pressuring right versus today that's been the mix And depressed margins

Yes.

let kind least with about progression your So the of kind start how second portfolio. of goes can question we of part at me talk and margin our then within

is But our to business of about XX% XX% XX% to your replacement is and new housing point, typically, to about XX%.

So you XX% it XX% step back there it, an And XX% to replacement is over when in what discretionary. kind now of the leaves in is at typically about at we're terms and today. section of you look

doing And is. XXs what driving that's our low XX% to the is of really that's discretionary what business or mid the close be type to in

got in just Even volumes is strong shift such So shift. are terms replacement a reduction if flat, industry a significant there. within so relatively we've that -- that that significant pretty is a and of

we margin super our our and obviously portfolio. have our of always of you information talk talked the portfolio progression brands, premium from margins. which within least, starts margins And see at being about, lot among that we there's margins, give we've of that. say about because as our Now all I a different really margin-specific don't premium is that go within lower to up it product and will into having value What factors type higher categories

business level you more significantly In a do premium at the down-discretionary and super are the and see premium in value. environment, you more impacted

you've in terms shift of to your lower portfolio. got brand So a a margin

at type quickly. you within see your about product and the to more very products We've a in terms space, our of the margin, of your dish. cooking relatively talked laundry replacing look lowest talked is competitive always through portfolio, as refrigeration that then Also, about consumer I you portfolio, and

earlier breaks. about that replace or talked a I immediately Obviously, it washer refrigerator almost will after a a consumer

replacement within driving So are probably towards categories there. what that product you lower-margin also see industry

of that go go and then you suite of get of piece and cooking you towards there. included then product to And remodels last premium dish from what existing towards is and said a I mix terms tend sales your in your lot is get more brands premium the home don't that sales, which within

specific higher-margin go while pushes more the just you you comes perspective, And discretionary areas. based or guidance, it's when comes or to on as brand growth lower-margin So we give product you can back the don't a see replacement see housing we into back, from the a where the that's industry, it areas. whether in category of new

Jim, follow debt financing color. you helpful wanted on some the Okay. I And then, That's that up really said. to of

in are outlook. you down just successful cash paid the So reducing been you $XXX million, you've like but flow refinancing,

think payment about remind have capital flow and rating sort the balancing have your the just next today cash credit you managing to when maturities of just How think shareholders? with do the you debt dividend? about return you us IG relative how you to and due, And

Yes.

Rafe, So year. did is reduce the say some this here's I cash would we what flow for

top as within next by EMEA the portfolio confident are incremental still we the where we we into comes EMEA. just year having Now go and are year. That this of the that million we divestiture have $XXX not on of

term you due first and then remainder So debt year. loan the related and back have, some that, also that quarter will coming of will look next long-term in the InSinkErator you usual, when step come the we to we as have at due

into year, into ability that terms of and we of ahead whatever down refinance in we specifics get We're next pay need of very to we confident and our go as don't that, to look to what just will that handle us. put we next about are our ability that, year, to we've saying also confident looking but as where of at terms that, talked in that's we

of getting talked returning will leverage continue whole focus part and margins, we yes, the debt. thing prioritize to and to back of expand on we've ratios levels we As debt the leverage about,

reducing We dividend buyback. deprioritize but and the will share debt, prioritize

the into closer as priority. from that it and But next our get help grows, to that But XXXX. be growing we've year, us EBITDA also about to as continued reducing by and talked metrics debt EBITDA we will go will XXXX the

a confident probably very year cash say path on small having right now to we're deleveraging, So that. in and only is this with would that the flow our impact reduction I

right. All

that do appreciate session. pretty marks all of much joining. end you think our I I the Q&A

we're today, broader you heard somewhat obviously we're negative -- As in in America. macro environment, North cycle still, and still a still from underlying, a

favorable also that has the You more a already shifted and heard of much rest the cycle. saw world into

cost bit in And earlier, macro pricing a referred would I at actions, to we're successful we're or we one margin committed our expansion. sets macro very negative to us our still will doing takeout, America, We're cycle successful environment, of for cycle irrespective But point well said we which little that and in market that think our XXXX. we're turn, doing. what North up I in be

wonderful With to you and a that in mind, day soon. talk all have

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

may disconnect. now You