Whirlpool (WHR)2025-02-13 18:24Financial Performance - Whirlpool Corporation reported approximately (323) million, with a net earnings margin of (1.9%) or 481 million and 2.5% margin or 12.21, with a full-year ongoing EBIT margin of 5.3%, down from 835 million, compared to 385 million, up from 1,684 million, representing 10.1% of net sales, a decrease from 10.2% in 2023[207]. - Restructuring charges incurred were 16 million in 2023[208]. - An impairment charge of $381 million related to the Maytag trademark was recorded in Q4 2024 due to a decline in fair value[209]. Strategic Initiatives - The company completed a significant portfolio transformation by contributing its European major domestic appliance business to a new company with Arcelik and selling its Middle East and North Africa business to Arcelik[17]. - Whirlpool's operating segments were reorganized effective January 1, 2024, with the MDA Europe segment deconsolidated as of April 1, 2024[36]. - The company announced a strategic portfolio transformation initiative in 2022, focusing on higher-growth, higher-margin businesses, which included divesting operations in Russia and MENA, and acquiring InSinkErator[81]. - In April 2024, the company closed the sale of its MENA major domestic appliance business and contributed its European major domestic appliance business to Beko Europe, retaining a 25% interest in Beko Europe[90]. - The company is transitioning certain functional processes to a third-party partner in 2025 to optimize operations and capture efficiency gains[56]. Innovation and Product Development - In 2024, Whirlpool launched over 100 new products globally, including the KitchenAid Espresso collection and the FreshFlowVent System[21]. - Whirlpool's innovation pipeline includes connected appliances with features like voice control and WiFi connectivity, enhancing consumer experience[23]. - The company has applied for intellectual property protection for innovations and new products, but faces challenges in securing and maintaining these rights, which could weaken its competitive advantage[87]. - The introduction of Accelerator Centers of Excellence in 2024 aims to refine the organizational model, but reliance on third-party providers may increase risks related to service disruptions and data breaches[84]. Environmental and Compliance Efforts - Whirlpool Corporation aims for a 20% reduction in emissions linked to the use of its products by 2030, compared to 2016 levels[46]. - The company has committed to achieving net zero emissions in its plants and operations by 2030, focusing on renewable energy and energy efficiency improvements[47]. - The company is facing increased costs and potential product redesigns due to stricter government energy and environmental standards[49]. - Compliance with evolving environmental regulations may increase costs or require product redesign, impacting the company's financial condition[134]. - The company is subject to various federal, foreign, and state laws, including antitrust laws, which could result in civil or criminal sanctions if violated[126]. Workforce and Employee Relations - As of December 31, 2024, Whirlpool employed approximately 44,000 employees across 27 countries, with 39% located in the United States[54]. - Whirlpool's leadership development programs are internally designed and facilitated, focusing on building a deep succession bench for leadership roles[58]. - The company is investing in employee health and well-being through a global well-being strategy that includes various support pathways[62]. - The company has approximately 44,000 employees globally, and labor relations could impact operational results due to collective bargaining agreements[114]. Market and Competitive Landscape - The company aims to maintain a leading position in the Americas and expects to continue growth in multiple countries[20]. - Whirlpool's competitive landscape includes intense competition from well-established companies and the need to adapt to changing consumer preferences and technological innovations[76]. - International sales represented a significant portion of net sales for the year ended December 31, 2024, and the company anticipates continued exposure to political, legal, and economic instability in various regions[99]. - The company is adapting to changes in consumer preferences, particularly towards e-commerce and connected appliances, which necessitates timely product development and innovation[85]. Risks and Challenges - The company faces risks associated with supply chain disruptions, which could impact product availability and sales, particularly due to reliance on single-source suppliers for certain components[94]. - Supply chain risks include potential disruptions from geopolitical instability, labor shortages, and natural disasters, which could adversely affect manufacturing capabilities[95]. - The company is exposed to foreign currency exchange rate fluctuations and changes in foreign tax regulations, which could negatively impact financial performance[100]. - Cybersecurity risks are increasing, with potential impacts on operations and financial statements due to sophisticated cyber attacks[108]. - The company relies on information technology for operational efficiency, and failures in these systems could disrupt business processes and financial accuracy[104]. - The company may incur unanticipated costs from acquisitions due to potential violations of anti-bribery laws by targets[101]. - Product-related liabilities and recalls could lead to significant adverse publicity and impact financial performance[109]. - The company is currently disputing certain income and indirect tax assessments issued by Brazilian authorities, which could materially affect financial statements in specific reporting periods[124]. - The second part of a French Competition Authority investigation is expected to be completed in 2025, potentially impacting financial statements and reputation[126]. - Economic uncertainty and potential recession may lead customers to delay or cancel orders, adversely affecting sales and inventory levels[141]. - The company is exposed to risks from changes in foreign trade policies, tariffs, and sanctions that could negatively impact business and financial performance[129]. - Whirlpool experienced significant raw material inflation in 2021 and 2022, impacting overall costs and necessitating strong cost reduction initiatives[116]. - The U.S. Federal Reserve raised its benchmark interest rate by a total of 5.25% to 5.5% as of July 2023, which may increase costs of obtaining new debt and refinancing existing obligations[144].