) adjusted earnings per share came in at $2.97 in the fourth
quarter of 2013, which was higher than $2.29 earned in the
year-ago quarter but fell short of the Zacks Consensus Estimate
The year-over-year improvement was primarily driven by the
company's sustained focus on cost and capacity reduction
initiatives and revenue growth. Moreover, reported earnings rose
to $2.26 per share from $1.52 in the year-ago period.
Revenues in the quarter increased 6.2% year over year to $5,090.0
million. The rise in the top line was primarily driven by
increased demand for the company's innovative products.
Region-wise, North America and Latin America strongly contributed
to total revenue.
Moreover, Whirlpool registered year-over-year sales growth of
nearly 7%, after excluding the impact of foreign currency
translation and lower monetization of Brazilian (BEFIEX) tax
credits. The company's revenues surpassed the Zacks Consensus
Estimate of $4,981.0 million.
Gross profit improved 11.9% year over year to $909.0 million from
$812.0 million a year ago. Gross margin expanded 100 basis points
(bps) to 17.9% from 16.9% in the year-ago quarter. Adjusted
operating profit rose 24.9% to $386.0 million from $309.0 million
in the year-ago quarter. Consequently, adjusted operating margin
expanded 170 bps to 7.6% versus 6.4% in the fourth quarter of
Tidbits of Fiscal 2013
For fiscal 2013, the company reported adjusted earnings per share
of $10.02 compared to $7.05 earned in fiscal 2012. However, it
missed the Zacks Consensus Estimate of $10.05 by 3 cents. Net
sales for the year totaled $18,769.0 million, up 3.5% year over
year and above the Zacks Consensus Estimate of $18,656.0 million.
Q4 Regional Performance
grew 9% year over year at $2.7 billion. Adjusted operating profit
increased 29.2% to $301.0 million in the quarter from $233.0
million in fourth-quarter 2012.
The year-over-year growth in operating profit was due to
higher sales, better cost productivity and gains from cost and
capacity reduction measures, which nullified the impact of
increased material costs and investments in marketing, technology
and products. Going ahead, the company expects its U.S. industry
shipments to increase by 5%-7% in fiscal 2014.
GENL ELECTRIC (GE): Free Stock Analysis
HAVERTY FURNIT (HVT): Free Stock Analysis
TEMPUR SEALY (TPX): Free Stock Analysis
WHIRLPOOL CORP (WHR): Free Stock Analysis
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grew 7.7% to $1.4 billion on a year-over-year basis. Moreover,
excluding the effects of currency translation and Brazilian tax
credits, revenues were up over 8%. Adjusted operating income was
up 9.2% to $130.0 million, as higher sales, better product price
and mix and cost productivity initiatives were partially offset
by increased material costs and unfavorable foreign currency
exchange rate. The company expects flat appliance industry
shipments in Latin America in fiscal 2014.
Europe, Middle East and Africa
grew 6.7% to $847.0 million in the quarter. Fourth-quarter
adjusted operating income for the region was $10.0 million, up
25% from $8.0 million in the year-ago quarter, benefitting from
higher sales as well as cost and capacity reduction measures.
Whirlpool expects industry unit shipments in fiscal 2014 to range
between flat to a 2% increase.
fell 12.8% to $177.0 million from $203.0 million in
fourth-quarter 2012. Excluding the negative impact of currency
translation, revenues dropped close to 7%. Adjusted operating
income shot up 42.9% year over year to $10.0 million as the
benefit from improved product price and mix and ongoing cost
productivity initiatives fully offset the higher material costs,
unfavorable foreign currency translation and lower unit volumes.
The company expects industry shipments in the region to range
from flat to 3% in fiscal 2014.
Whirlpool had cash and cash equivalents of $1,380.0 million as of
Dec 31, 2013 compared with $1,168.0 million as of Dec 31, 2012.
Long-term debt was $1,846.0 million as of Dec 31, 2013 compared
with $1,944.0 million as of Dec 31, 2012.
This largest home-appliances manufacturer in the world, which
comes ahead of ElectroluxAB, LG, Samsung,
General Electric Co.
) and Haier Electronics Group Company Ltd., generated a cash flow
of $1,262.0 million from operations in 2013. Meanwhile, the
company spent $513.0 million toward capital expenditure during
the year. Currently, Whirlpool has a negative free cash flow of
Following a strong fiscal 2013, Whirlpool came up with a
favorable guidance for 2014. For full-year 2014, Whirlpool
expects earnings per share (GAAP) in the range of $11.05-$11.55.
However, considering the impact of restructuring charges,
Brazilian tax credits and investment expenses, the company
anticipates adjusted earnings per share of $12.00-$12.50.
Other Stocks Worth Considering
Currently, Whirlpool carries a Zacks Rank #4 (Sell).
Better-performing stocks in the retail space include
Haverty Furniture Companies Inc.
Tempur Sealy International Inc.
). Both of these carry a Zacks Rank #2 (Buy).