Whirlpool Corp., the home appliance company whose brands also include KitchenAid and Maytag, reported a drop in fourth-quarter and full-year sales, because of a previously disclosed supply chain issue.
For the fourth quarter,
Whirlpool
(ticker: WHR) reported a 15.3% decline in net sales, to $4.92 billion. Analysts had forecast sales of $5.07 billion, according to FactSet.
According to generally accepted accounting principles, its net loss was $29.35 a share in the fourth quarter because of the supply chain disruption and a slowdown in demand it said was partially offset by favorable price and selection.
On an adjusted basis, fourth quarter earnings per share of $3.89 compared with analyst expectations for $3.32 a share.
For the full year, the company posted a 10.3% decline in net sales, to $19.72 billion. It reported a GAAP loss of $27.18 a share, and adjusted earnings of $19.64 a share.
The Benton Harbor, Mich.-based company projected earnings per share in a range of $16 to $18 for 2023 and full-year 2023 revenue of $19.4 billion, which would be down 1% to 2% from the prior year. It also forecast $1.4 billion in cash from operating activities; and about $800 million in free cash flow.
Whirlpool also expects a $800 million to $900 million benefit from “strong cost takeout actions and easing raw material inflation.”
Whirlpool’s stock, which is up 8.5% so far this year, rose 3.9% in after-hours trading.
The home appliances company announced earlier this month that it is divesting its businesses across Europe, the Middle East, and Africa, completing a review it launched last April, and is joining with Turkish multinational appliance manufacturer Arçelik (ACKAY) to form a Europe-focused entity—of which it will own 25%.
Whirlpool said earlier that it experienced a “significant” disruption from its supplier that negatively affected sales and production volumes in the fourth quarter of 2022.
The company also closed its $3 billion acquisition of Emerson Electric‘s InSinkErator business in the fourth quarter, which had no material impact on fourth-quarter results. Whirlpool has previously said the deal would contribute about $1.25 per share to Whirlpool’s margins in 2023.
Company management will hold a conference call at 8 a.m. Eastern time on Tuesday.
Write to Janet H. Cho at janet.cho@dowjones.com
Credit: marketwatch.com