Whirlpool (WHR) 24 Oct 242024 Q3 Earnings call transcript

Good morning, and welcome to Whirlpool Corporation's Third 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.

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

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

also beginning of presentation earnings presentation. that outlined We further our remind non-GAAP in the the measures today's at detail to want includes you

We measures from results ongoing indicators operations. are of they operations as our believe items indicative that of these exclude may important our not be business

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

the to turn call [Operator over Instructions] that, Marc. With I'll

In execution good expectations. third priorities, our global in and again delivered expansion, everyone. team's EBIT our delivering line margin basis with of Scott, our we of morning, sequential with sequential quarter, margin global largely points expansion. operational XX pleased the I'm Thanks,

Our points led of achieved pricing announced sequential XXX actions. basis North our previously expansion by margin even American business

is the market and term, is constrained I the a in further recent confidence by Before I been near still the rates. of impacted and the macro Despite low housing U.S. the want the elevated interest elections. challenging by will, upcoming ahead uncertainty Fed, expand at results, the the rate in U.S. what acknowledge cut by environment least to into Consumer has remains mortgage remain

discretionary low sales. to weak demand U.S. the lower-margin in purchases. has continues the shifted As be higher-margin toward a replacement-driven historically result existing this significantly And due to home environment, of demand

that We're we will housing still positioned uncertain, the a strong. to recovery remaining from underlying housing of recovery the multiyear housing well U.S. eventual rebound. are Although the the with industry benefit this timing fundamentals have is confident

anticipated priorities. await recovery, multiyear we operational our U.S. focused on we executing housing an While are

cost actions, more adjusted our EPS supported favorable ongoing $X.XX of takeout We effective and tax by pricing delivered rate. a

cash improved strong third working management Our quarter. capital of inventory, approximately $XXX in the million generating

million XXXX. flow in expect deliver $XXX approximately We to free cash

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

Our our and quarter levels $X.XX in share capital the free We debt flow fourth per per million declared are to year. this quarter, $X.XX allocation in unchanged, return to approximately enables paid to and shareholders further third to reduce continue delivery share cash of us cash shareholders. our priorities and $XXX dividends returning the

actions drivers. Turning Slide points the of the to impacted North price/mix out market pricing price/mix which I unfavorably delivered in still third The of shift EBIT driven basis categories in dish, quarter. to into laundry ongoing categories. by Sequentially, expansion, the review third margin balance XXX the in Year-over-year, quarter America. be unfavorably margin our X. We by heavy will saw sales points. margin margin product impacted XX MDA tend strongest refrigeration replacement U.S. replacement-focused the and cooking mix and basis

I negative impacted points European negatively in negatively by expected, it third the real were expansion was delivered and pleased and and peso delivered will as have was to as margin Ultimately, unchanged. impact year-over-year basis dollar. transaction materials, basis implemented impacted experienced weakening points guidance. integration-related the This Our some expansion. And we over sequential weak by the raw sequentially basis Europe by our basis to Beko B.V. environment while and results points by takeout are points segment now, macro from full to review and XX year XX equity XX Brazilian due efforts. The margins simplification impact year-over-year. relative to affiliates our quarter turn Europe XX cost of to organization This driven Jim the led U.S. essentially sequential actions Currency Mexican and fully margin

Marc. Good Thanks, everyone. morning,

X, our review Slide third I'll price/mix quarter weak driven to of year-over-year, down sales MDA Turning were demand. Net America replacement by environment North for and results discretionary unfavorable a result as X% strong business. the

deterioration first We discretionary underlying half experienced the are seeing we the in in of what demand XXXX. than further

margin $XXX to our program, improved million takeout price/mix with our last to to actions deliver full compared is the for However, delivered approximately globally improvement pricing year. our pricing significantly due cost which quarter actions. We and expected

basis X.X% the delivered are with margin expansion. actions XXX approximately EBIT the points XXX delivered delivered first of sequential margin EBIT the margin quarter. for very pleased points expansion segment of quarter. Our we basis Overall, since the And

on as continue We expansion opportunities takeout support to to fourth progress. focus head cost into the expect quarter margin we margin and further

few a notable launches. Turning new expansion we in our to our I'm Slide product growth launches to America, to critical a category. product is innovation In of moment future and take margin laundry X. X Product had expectations. to enable North our showcase MDA excited

help fights odor washer with Our FreshFlow newest your system first the cause System. of System Whirlpool clothes fan-powered is Vent the and designed Vent brand new FreshFlow front-load common keep laundry The fresh. to pair innovative

innovative you laundry of load. winning The front and the in for Pet Pet hair Pro clothes XXXX, Pro filter clean a Pro utilizes launch and see. load successful lifting to the we've pet Filter With Pet from the removing brought Pro can Pet the Maytag top Option

leading Recently, X-door X-door lets new flexibility, refrigerator The best our frozen These kitchen at their being keep the first consumers locate. laundry and with organized our improving in to customize a strengthening launched consumers, for position brand's The the to easy North combined sections the products to and life commitment the demonstrate storage design, KitchenAid refrigerator. to America. with refrigerator innovative ingredients needs. has and KitchenAid our company, home modern fresh esthetic

and expect lineup introductions new stronger share. we an we have even product price/mix look forward of that we As impact positively to XXXX, will

review X% driven Mexico. currency, Latin strong our demonstrate MDA quarter, improved by very sales margin margin expansion the X. We to industry for delivered results in from to business. excluding I'll in the Turning sequential solid of Brazil a price/mix. segment XXX with year-over-year, and both This America X.X% growth basis EBIT of continued strong points net Slide of

We expect growth solid sustained EBIT margins on price/mix continued full and the for as focus we improvement. year

year-over-year, results period. double-digit contracted to Turning as the Sequentially, of review decline XX, due currency. of Slide another sales to excluding I'll quarter the business. We sales Asia the our saw of XX% summer net growth seasonal exited we MDA

growth, from fixed improved pleased EBIT the cost delivered margin price/mix X.X% delivered are We Our volume with leverage. made in gains and continued and we share the segment. progress

declines Slide the quarter our We business review year-over-year, U.S. product direct-to-consumer consumer of the launches business. than a Net new were in our marketing new XX.X% SDA to sales EBIT Strength by more the I'll investments Turning XX, offset sentiment. with delivered X% industry by our results in with industry margin decreased continued impacted and by for in weak impacted softer products. Global

new are business margins. is well positioned product delivering for holiday Despite approximately we X.X% by our net SDA the strong supported expect guided of seen Our the year-to-date, sales pipeline. growth EBIT softness we in season, industry confident and sustained

KitchenAid appliances. new Turning lineup to pleased our of I'm review exciting Slide small XX. to

enthusiast Our for Go removable battery to launched KitchenAid power Cordless the hit the you and fuel which everywhere. interchangeable both accessories continue no inside stand new providing We product expectations. On year blender Go mixer powers even to Slide hand and cord review KitchenAid needed. launched The you with reaffirmed citrus growth KitchenAid top-down unlock unique more our guidance. design, chopper, creation, System, a kitchen. evergreen the XX, appliances, new with out has iconic need additions with will me the possibilities, our These all let new been a juicer and of full launches every

margins Our X% year billion, guidance sales unchanged. of net alongside $XX.X approximately EBIT full are ongoing approximately

free earnings ongoing of per flow are guidance we Additionally, million. cash and reaffirming of $XX approximately $XXX approximately share our

guidance updated now XX%. year adjusted for full tax Our of expect We approximately adjusted effective rate expectations XX% our negative tax an to includes effective rate.

transaction. refined closing We the have benefits strategies since planning tax further our the of Europe estimated

the legal to in tax expect adjusted unique entity we the impacts to us, starting to the of our be XXXX. execute XX% able tax With we restructuring with rate significant European behind XX% transaction approximately were effective

cash will rate tax lower. our be significantly However,

are that right the in have we confident year actions full and our guidance. are reaffirming place We

Turning to Slide XX.

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

initiatives our brand the actions X reduction these more on cash. Coupled planned $XXX approximately Brastemp well million free approximately in our in flow are hand than of million of on and of debt July continue X. divestiture of beginning $X.X and positioned closed cash $XXX pay Brazil XXXX. of billion cash water filtration our Additionally, Combined, million, generated with $XXX to we dividends generation business

X%. of in with we $XXX of interest reduction million current have With maturities approximately of total term down. repayment debt term approximately have made rate debt Inclusive progress loan, the a $X.X XXXX the $X with average of acquisition the billion InSinkErator of since of significant billion in April, a loan paid we weighted

current expect of rate interest portion a lower a and XXXX. to our at down in maturities a pay refinance We portion

have As optimize flexible plans. we to in ample we our refinancing ahead, debt ladder space our look

capital strengthen Whirlpool allocation our sheet. fully on position our are We balance to deliver XXXX track to priorities well and

Marc. to Now I call turn over will the

Thanks, Jim.

Slide full to We guidance. review had are me solid year a our XX, today. what let and heard Turning you reiterating quarter

pricing margin which have America. of to about our We expansion plans, globally in actions feel on track. pleased importantly, most sequential and cost good are North both delivered are We and

confidence million million challenging U.S. by is market causing While With in the with we a High homes become for are rates clearly turnover rebound. housing a X units. Home existing X sales this rates, we interest an see continue interest investing undersupplied positioned equity pressure to home highs, ease. structurally as to lows. values market are multi-decade navigate environment, have lower more housing should favorable. near in rates meaning will macro at low homeowners eventual all-time their

of position XX well and from new housing to homebuilders the recovery X of with benefit top positions Our us discretionary an U.S. improving demand. exciting strong and lineup products

Our business. to our drive recovery U.S. strategy, housing significant and confident benefit will America that in expect for we which teams are executing our we market North us are on MDA capitalize well, enables the

control. what In our on within is the we're meantime, focused

out expectation fixed since to cost of structures million $XXX year. for remain ability on removed the track million with take approximately demonstrated XXXX have costs operating and costs takeout from this We our $XXX with our

chain. continue in optimize our We challenging have see North to priorities supply to costs, input the across environment the navigate operational costs opportunities manufacturing we and and Overall, right business. through strategy design, significant to America our products

long businesses and important overall to for a runway SDA international have our growth very continue to and portfolio. the be

to cash both to returning are our on while We short We're long our and focused reducing confident shareholders. the steps in for and value taking shareholders. we're levels debt strategy term deliver

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

David [Operator from first the comes MacGregor Research. from Instructions] question line Your of Longbow

I the first progression, is excuse guess question consolidated EBIT on margin just me.

X% your your had the goal You in a that indicating X.X% put ongoing quarter included -- in EBIT deck a performance margin chart XQ. the last year for

actual my XX if million, Your correct. variance, basis with turned $XX point a X.X% representing to be out math about is approximately about

left So at is importantly, have year think offsetting method guide investment would $XX that a X%. the from nontarget the been quarter? But you've otherwise million equity I what loss more full

guidance it of if rate quarter fourth and So is run my an an that previous exit correct, margin X% performance exceed would X%. implies your math

And takeaway? be So the quarter so, fourth correct better-than-expected is this what a if margins? driving would

Yes, kind what QX first of in assumption XX% is here. is you're I'll start, is results and say then stake the Jim, EMEA. that, purely in with in we on correct can Marc yes, difference and would saw the from chime your almost this David, I our

a of we expansion, it's look one, approximately the we we continue quarter, lot be to cost level have then begin to, you to with, much those expect or But North as to impact X%. have less expect pricing. three, what X% a see accelerate. continue expect level is, in same is driven, our due we've we the EMEA going said, we we've go to as around about expect margin talked have. into of America, QX, that year stake actions But as And do from especially impact, full also Now to do we fourth don't the of to as the to within towards the that we two,

are we from those So look QX. the drivers as to big QX

thing down other you've significantly. took QX, we the think a out remember company levels inventory to got I we -- reduced our talked we as about in

environment, which QX, gives quarter. within absorption more leverage into normalized a go cost helps us we production and better also a the we'll as perspective so much And have us cost from

to adding just Maybe Marc. Jim's points. it's David,

the this a million because obviously, negative Europe on with in we many of $XXX and also want emphasize cash is EBIT was carry negative one equity flow, the just I ways. on full indicated and cash on just it's Europe the now all to little hurts out and year zooming noncash numbers we us transaction tax us. know in It's very First And a our all, positive a we about It bit year the a the it's which relevant little right all line, affiliates. significant different rate. a on flow bit, along, impacts

say, in impacted would losses efforts, will different parts not in lot cash a particular, not surprising. we're were associated relevant. year's there's So the Again one European the of And 'XX, that entirely moving ways. with be normalized, but this in I are of the all with numbers many Europe out integration

is important in it's just the you it in -- North it, -- America. margin had comes In QX, we to X.X%. if around progression. just the QX, but I thing to noise The North and you all the margin X.X% America know take all think all And down margin, underlying

as in Now just margin There's very know really in But QX, not one. you by is, have particularly that which before, impressive in U.S., actions, very in traction. progression. place, destination. is this no it's all X%. QX, I the X.X%. that That challenging think We we guiding about our put what definition, is any we're debate X% a a the environment, to And a heard still given evidence

I the guess to just ask wanted SDA as a follow-up, I about segment.

points. were Third down margins quarter XXX sales about were basis down but X%,

the the You new support with noted to marketing product launches need investments.

that this segment the does imply spending margin be stronger in for XQ. fourth given now should So that amount a you're And driven just pattern new by that I quarter might support a incremental And this we expect I sense. that makes XQ? seasonal stronger guess normal given in products, business? of than in guess

David, Yes, we're towards year would on KitchenAid it's guidance exactly overall, our track on SDA. I say, full

margin. very you XX-plus just September, seasonality skewed of and well, very that around know particularly XX% October, the know, guide it's October, or we And growth X% feel appliances that is full now, It about is -- north revenue As the small in number good right towards you year. November. November, slightly heavily for we and domestic heavily,

So the difference days partner X to or of shipping X trade a plus/minus. in massive quarter makes a

year, about response, we But of and the yes, ratings. entire both take very we are. trade, we investments the feel you X very correct, and new marketing combined good launches, increased flooring see support our good to star where the product and significantly quarters with And we consumers you're a

line will about good a for in QX expect very I lift. be disproportionate feel full we guidance. will be So QX. wouldn't It usually year --

Sachs. Maklari Our line Susan Goldman next of the from question comes from

bit pricing dynamic other that the X that given launched and as it this a track can you quarter, MDA bit a margin, in And margin of how that into you points mix price/mix more should talk coming that you you well? seeing program You about to digging we earlier that? year. of on is, factors were to there Are the out question mentioned second the think just first then with relative that component to deeper you American about saw? the My X North

in indicated terms, similar the what earnings in the Susan, picture very Yes. general to last is call. we

is the North see America, the fully our we and our in X we work had we drivers numbers. a the lift, That's The in which in pricing, on which have that is in direction. positive. changes indicated that fully opposite price/mix promotional place, positive which We in

weaker negative and side, coming a mean, a on On in the comparison, have you margin That very historic weakness. I replacement is product largely share high a -- from of categories still particular, of SKUs. continued against mixed more also demand, very

saw have what QX, sequential a we and a in QX, I right is -- in a negative positive we that's that what totality pricing. But now, similar we in would So The QX saw also. picture that's of we again, expect mix.

that you What And a then going about is further your do health the that that? bit in what slow in that the discretionary the that, you of of you That's are mentioned that in think through? Can you've half. any talk Okay. seen in broader demand commentary And to the quarter helpful. see more U.S. you driving relative factors the did first maybe on the consumer? coming are just

the of related And consumer the and soft ultimately say particular. North it's obviously, in particularly existing America evidenced in -- Yes. as the actually a sentiment good U.S. Marc. home with spot. of pretty would mortgage sales, is this by I market, is we yesterday that's consumer But world driven again, And is and North general health rates. I shape. Susan, across in America. mean, housing is to Again, still that's know, the all It's combination. very a And the

part. But that one is and before. news that's election just every is And negative as sentiment. that's surprised. seen We've -- consumer does living last you're U.S., pattern preelection anybody So messages entirely negative that not to not just sentiment day lift in then the good. exposed in And a the every the consumer not election, day. a And similar the

news -- going we're to but over, see. once in news being consumer probably consumer Now that's seen that's hopefully, We've we is the September, and is October low. the prior outcome, kind is of continue the we've in that until seen in what sentiment that of -- so irrespective over, of election pretty to recovery elections saw the sentiment were good was elections, or good quick it

we for dynamics is home existing is I demand mean, in out pointed out, as came still add right of sales, of the strongly as housing this Susan, Marc again, what long-term the in a we've on to I'd yesterday multi-decade Marc believe just U.S. type And that low. a lot that said pointed now, again

this a positive, We the begin right not a interest But are will to much is going we process. you more down, become of rates at if overnight on So believe especially market, come the spectrum, dynamics now. much in it's undersupplied. really look the do an but trough to longer-term housing be still

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

Either wanted or just have X% we're North for think of clearly guess, the guide. you're bridge that's your holding I to benefit X%. is America, I in what you Marc, kind year saying to, Jim you're on I Marc, missing a the EPS full contributing EPS, to but tax

guide, EBIT tax your but improving holding rate. You're you're your

there is that some kind So a to Or of us is better? of numbers? just math EBIT us -- help just in it bridge you the make little help rounding bit can

extent, Yes, expect would first X%. yes, in I earlier, of Mike, kind I EBIT the is rounding we we this because of it to some certain margin to like be And answered Jim. a of is a the say, approximately said question bit

talked within impact an the our EMEA unexpected stake. quarter due to As about, we did have we

So noncash that to that wasn't really thought and do in a what time. we over expect that's And we of. originally item, improve

significant positive. in expect at costs fourth continue to a We'll have to what talked as and pricing. think North one, we you the we the if improvement you to look be I continued drive about benefits I at of here, look America quarter -- is earlier, continued expect

that closer there. we a talked normalized just to absorption continue cost be expect where or I our from we running get and But we production and We demand about did, to get also, that benefit inventory at the to from reduction leverage levels will the more positive is. cost

you think EMEA. improve, to what I rounding do correct it are -- North we margins certain of is and it from expect some that are those we But also, some in didn't of saying America expect is So the in QX. things

then And to balance shift sheet Jim, question. Got Okay. it. can I

to being stake last look you was that not a I of Whirlpool in cash, roughly quarter held have cash? an of Q that million I free your way? of cash $X.X be much of in the thinking what's then think in billion the in about access combination on to is you XQ that how the that should in and Brazil, basis. U.S.? give India in billion cash on and about an access which tax-efficient may Can if or How the the ongoing the we non-U.S. $X.X balance think on repatriate we -- may disclosure the $XXX And or a at your us update actually was ability

Yes.

your paper our to because cash end and in most where similar it's we point, of look versus commercial U.S., QX, bring the QX have whatever our which notes you our So relatively the cash is do our of time, -- is to down payable when at at use line we on line. -- the borrowings,

similar So of in we're locations. of terms at geographic very levels cash

Our do or in and that as a repatriate there. the that other things, we such able more earnings things But ownership, the driven structures world, and through access this is cash the stay ability things by a certain entity where parts lot legal of various a we with minority to longer-term access cash different significant cash of lot around a like basis, a to as lot world of have can does India On stuff. are it. other places of we

have places India. that's with We've talked of and some other you about continued look in in larger to hand, Elica Now India. we're to on the that at doing a take we've what invest stake like cash

business. that We in continue invest to more

do to but difficult as putting grow to to bit more where of places cash to we're it I want the that So in like invest said, repatriate, and because, we it's in a that is to really grow. businesses a work also continue part those world there little

significant the from there's the no quarter. we end were at last of where difference So

our strong business to America generate we look well fourth majors that be our also within in that the generated tends of by significant U.S. both cash as within at and portion we North a big quarter, is generate quarter. very the fourth has by business, will Now cash as KitchenAid U.S. QX, QX as a which

Michael, Marc. it's

adding point. maybe to Just Jim's

the the also balance definition, by then course, cash follows our cash flow quarter. Of in

by cash you very you start absorbing look cash but America, North particularly by kind of balance, what the the basically and selling impacts typically America was the business. you receivables, every and capital how course, saying. our In business, U.S. produce year QX. the just a cash North through definition, Jim QX, is in with you the It's but just So flows inventory, that in will -- driven our our cash QX working collect then particular, which of which different the therefore, seasonality cycle turns also in then also of business, particularly same, That's SDA North America and than balance

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

for line It's top on small appliances.

guys share that cause the basis. quarter? to you it's a and us year-on-year the a you weaken Can to in out the that with on industry led that that on you little problem think I would more industry what's give an that decline market on held going confirm called color

before, of I guidance very our X%. we guide said Laura, very with revenue it's year feel comfortable full Marc. on mean, domestic, what that north of to similar I more is kitchen

except a because the last weeks read much the X what invested consumer products lot for October. We the new good X versus in sell-in too X the of and happens So first new or ratings. in so products, X I strong weeks wouldn't in much QX traction, of of September terms shipments or really about finding are in there's

semi-automatic evergreen it's fully pointed mixer. makers -- out, stand it's automatic, with Jim espresso So as

it it, seen look the and haven't up, you grain rice If cookers.

really growth. new we that a set feel whole and have about very the very, So products there's we about why no that's fundamental of concerns revenue good

the read and into QX much outs. So ins don't too

Understood.

there why just lows are just macro side, for North lower rather home, out cetera? American On given the you year, for new revenues the not majors called on numbers existing of et this some bar making historic

Yes.

don't theme, market North are environment, in that entire particularly And keep to expansion. -- had lose the margin we're we frankly, basically to -- the we share, a for focused the on top want and So stable which year. we again, we Laura, line. for we want That's basically America,

some discretionary on we the line course, consumer QX. demand of the in what about driven the strength revenue consumer there's, yes, outs So and earlier ins said by and QX

But which share on right now, margin level, a side, now, primary subsequently, kind months, we're of track. better on feel think and And of better. the particular and we last focus the the right I then we couple expansion is healthy particularly the -- getting to in on revenue market

all ever after -- pricing lost recovering. as initially, bit than in we we we've know, and promotional So of less share, our probably expected a been changes April, since we little we

I much line So QX market in we saw revenue say we what in QX and where our would pretty in be. is with expect to

historically. And here pattern significantly pick with like we we've in said, unusual just should the do Laura, on, that going the an U.S. within as we seen will of QX then little demand expect cycle and election be a bit up slower

to why been. in it aggregate expectations we that's expect across But previous an makes do it the our unusual with to whole point, this line Marc's what relatively QX. have again, quarter, So in be

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

in of you see, bit remind potential you how of would prices us come steel have Can could when? the a lock then that you tailwind that down potentially be competed and much away? how so quite First, just here. And

So let broader bit me on zoom raw out a little more side. material the

we in different contracts, As By steel, Asia, -- the probably biggest is a in cases, know from plastic, these of around And when have course, we materials even particularly, is we're as the out. which tend little know, longer we bit shorter have our have QX where Typically, annual QX, supply. to as #X is some quarter we long-shot, material term. by America. particular that's kind or North a you opportunities South different of lock a past, different of long shot. in item to contracts. Oil lock we're But is typically America "certain in and longer-term impacting In to kind -- raw try you prices."

ability limited. is just the So hedge longer to very

now, i.e., a as year in the it's down. on and probably would sideways, I typically we're moving a quarter right or right And full basis, usually up we now, say, not So term, out. short indicated,

overall piece Fuel it bit little much hedge is equation, smaller and longer. our cost a a we in out

coming on bit, helps the again, to little a spot some yes, on the that's So extent. a we're fuel little down but of bit hedged kind

QX. there's of right parts raw et together, zinc trend had put we that's and lot neutral, So it because basically now mind, and cetera, in see we the year, moving copper, are exactly which in i.e., for materials the also in all full also largely where a

where it. steel And Or on -- you it too prices is Got where there's just -- no are just 'XX I anything now? early? mean,

first in? Well, question we of first small contracts, a to there's there's a there material. elements, moves let's to we -- this, massive and then some January us already it give details. give But they're trying magnitude. But 'XX, but Is the But full raw the in materials, capture raw in it which did of of not surprised 'XX, of part favorability positive overstate get but this lock on we're our not I point. in Yes, put base all which into a trying to year -- Rafe, some expect you with we're wouldn't we at took yet all, I'm 'XX. of it of all major guidance half-an-hour

out, Marc I that comprehensive to doesn't piecemealing really parts moving other as think a until of of really give comprehensive are lot more some we do kind January as the the highlighted. Marc because called start picture of thing, picture. give there And to the wait factors a and reason is

really And to year as degree and within picture. materials get holistic we that you we that's more the variability until of of the to even still year, Some there's the to wait January a give them. closer why

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

filling Josh, for is This in Sam.

understanding like looks sure it's a volume-driven? X%. or correctly like-for-like we're about First, up sales. other entirely in there meaningful that to for components I'd XQ the mix guidance X%? Fairly plus is Is It make like that Or inflection.

expect a of we you that, of demand a QX you as basis, back we at year part about, the appliance business little less. biggest do the And have and to it, a you was think we in talked look while talked one, line small -- bit about the Two, if I that. industry bit half aggregate, before. about the domestic outside little the global in be on strong think U.S.,

little it means a bit be will stronger. So QX

got are there. I'd components what you've in to mix the just drive say expect we got the probably some natural seasonality just those revenue big then QX. in a and that But be in So you've improvement

cost And detail improving then units? higher you're ramping sequentially, that's selling much down savings cost in working why provide if so the of off can and on especially productivity you in just more exactly inventory higher and maybe XQ, terms

in out. look to when started basis, rolled it in QX. I'd drivers biggest now on we've our and I'll you Again, execute efforts simplification benefit you QX, back Well, of that a continue we cost, is a we we sequential that full organizational say that see go to coming and the QX, at in kind in have

where to just within of we're our better in to pieces back is the the we say you levels of reduction, a absorb looking year, got and that So our sequentially, quarter. I'd now for normal. when again, you're we'll talked thing our to the getting inventory taken about, to year-end, more will production a levels of that's actions factories, our benefit we've have point we've we that this one the because get right higher bring other I QX within have fourth biggest this full lot production cost the get can inventory allows means us at point which levels, leverage the

sequential cost from big drivers the X perspective. those So a are

Jim's to productivity. drives simplistic point when this know, most you what terms, it produce, about if QX as other is inventory, you to different Again, in production or adding just years. year compared Maybe the in

on the when has year, production depending a years, you normal inventory early because pretty we reduce took usual increase QX. measured and the uncertainty, productivity. In we the big start impact or the inventory year. in the reducing little on all take This production of So a the bit in typically inventory, down

QX typically with line what our in mid-November. inventory reasonably that actually what get more we of result, a it would healthy. will be As are production all October in into translates September levels levels our And kind

has because a the that productivity. on bit year a on inventory. little bit But more this So impact we've just little cautious an cost the been changed

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

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

you trying benefits XQ. market perspective a about clear better if a levels little help also market wonder pretty share were promotions, can Marc, prioritizing from of guess dots what Just sense production I the in higher but margin, good I I'm feel is, understand to a share. connect bit the from of better. get then of think and I you

there X about trying you mindset? is out figure running think business a different I'm in how XQ, Or together. things just As to the those you're

Eric. Yes,

our So are all, bit world parts first all of different. of global little a again,

America. we ever appliances. we our market is U.S., of good where premium share dip and after very in changes In since, about So we a small promotional good been strong Latin very domestic in we as pricing we feel May, market are. picked market feel in took the we share mentioned bit and did the the very is of I share up, India April, trend before, and particularly have recovering in strong, little

In which particularly about U.S., terms back year. is everything, of election the because is this bit QX, it we a said QX before, to an think it we in unusual comes little is as

the years, same So 'XX. it's to and as in election it's but previous not comparable 'XX

might QX create the lift. participate And we environment, said than the and get current such, we we i.e., where when continue We out of what are of in In limited. in of is value, in sentiment lift, we kind promotion very less think As not just QX. we current which the just is there. we therefore, just you because are consumer kind period get promotions usual that

expansion. on is focus margin Our

for there CEO no remarks. closing back turn further now to And I are our questions. it over will

all heard you, today America, I us I put had right. given not a quite we All particularly We we on an thank North both which given you of one, a before the easy is, one, Well, for and which place. in the America, about in us mean, sequentially organization North talking but global how first joining North our not today. environment, is particularly and level, the expansion, which executed America challenging margin good feel very all, actions about a feel good bit.

will And all which there's up said they next know it very, us Whirlpool, housing later, come, for but very wish and in housing more sooner that good and well year. set housing before, repeat where benefits company think recovery. U.S. no will recovery from what we all we're environment And I I I give in would is like it QX We than into And come. an momentum come recovery

I joining you sometime soon. you talk mind, all and in that with So appreciate to

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

now may disconnect. You