Whirlpool reported adjusted EPS of $2.09 versus $1.39 expected and revenue of $4.03 billion, slightly above estimates. Net income swung to a $73 million loss, down 33% year over year, while gross profit fell 7.6% to $594 million and operating income declined 24.5% to $200 million. Operating cash flow turned negative $669 million and free cash flow deteriorated to negative $907 million, while capital expenditures rose 175% to $239 million. North America sales grew 2.8% with market share gains and small domestic appliances jumped 10.5%, but margin compression and cash drain remain significant concerns.
"The 50% EPS beat looks impressive until you look at what drove it. The company swung to a $73 million net loss in the quarter, down 33% year over year from $109 million. Gross profit fell 7.6% to $594 million. Operating income dropped 24.5% to $200 million. Revenue grew just 1% year over year. This is a company that beat earnings estimates largely because the bar was set low, not because business momentum is accelerating."
"Operating cash flow turned negative at negative $669 million, a sharp reversal from positive $214 million in the same period last year. Free cash flow deteriorated to negative $907 million. Capital expenditures more than doubled to $239 million, up 175% year over year. The company is spending aggressively on U.S. laundry facility investments while cash generation has collapsed. This is the number that matters most right now."
Read at 24/7 Wall St.
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