Whirlpool (WHR) - 2025 Q1 - Quarterly Report

Financial Performance - Net sales for Q1 2025 were $3,621 million, a decrease of 19.4$4,490 million in Q1 2024[17] - Gross margin for Q1 2025 was $607 million, down from$642 million in Q1 2024, reflecting a decline of 5.5%[17] - Operating profit improved to $184 million in Q1 2025, compared to a loss of$116 million in Q1 2024[17] - Net earnings available to Whirlpool for Q1 2025 were $71 million, a significant recovery from a loss of$259 million in Q1 2024[17] - Basic net earnings per share for Q1 2025 were $1.29, compared to a loss of$4.72 per share in Q1 2024[17] - Total net sales for the three months ended March 31, 2025, were $3.621 billion, down from$4.490 billion for the same period in 2024, representing a decrease of approximately 19.4%[50] - The company reported a comprehensive loss of $112 million for the first quarter of 2025, which included currency translation adjustments and cash flow hedges[106] - The net earnings for the first quarter of 2025 were$71 million, a significant recovery from a net loss of $259 million in the same period of 2024[108] Assets and Liabilities - Total assets increased to$16,514 million as of March 31, 2025, up from $16,301 million at the end of 2024[19] - Total current liabilities rose to$7,534 million as of March 31, 2025, compared to $7,323 million at the end of 2024[19] - Cash and cash equivalents decreased to$1,024 million at the end of Q1 2025, down from $1,275 million at the end of 2024[21] - The outstanding amount for the term loan at March 31, 2025, is$1.5 billion, with a maturity date of October 31, 2025[59] - As of March 31, 2025, the total notes payable amounted to $619 million, a significant increase from$18 million at December 31, 2024, primarily due to the issuance of commercial paper[67] - The company has committed credit facilities totaling $3.5 billion and$1.5 billion in term loans, with additional facilities in Brazil and India providing borrowings of approximately $186 million and$173 million at March 31, 2025, and December 31, 2024, respectively[65][66] Cash Flow and Operating Activities - The company reported cash used in operating activities of $721 million for Q1 2025, an improvement from$873 million in Q1 2024[21] - The company expects to generate cash from operating activities of approximately $1 billion and capital expenditures of about$450 million for the full year 2025[200] Restructuring and Costs - Total restructuring charges for the first quarter of 2025 amounted to $10 million, compared to$23 million in the same period of 2024[114] - The company incurred $21 million in total costs related to workforce reduction plans, with$14 million attributed to employee termination costs[112] - The MDA North America segment reported restructuring charges of $6 million for the first quarter of 2025, up from$4 million in the same period of 2024[114] Investments and Equity - The carrying amount of the investment in Beko Europe decreased from $74 million as of December 31, 2024, to$59 million as of March 31, 2025, while the carrying amount for Whirlpool China increased from $191 million to$193 million in the same period[41] - The company holds a 25% equity interest in Beko following the disposal of its European major domestic appliance business[102] - As of March 31, 2025, Whirlpool's total stockholders' equity decreased to $2.829 billion from$2.933 billion at the end of 2024, reflecting a comprehensive loss of $34 million[105] Market Conditions and Risks - The company is facing a global shortage of certain components, such as semiconductors, and input cost inflation due to various geopolitical factors[205] - The recent trade policy and tariff actions by the U.S. government have increased the cost of certain raw materials and components, creating significant uncertainty for the business[204] - The company has filed petitions alleging violations of trade laws by competitors, resulting in extended antidumping duties on certain large residential washers from China and Mexico[202] Legal and Compliance - The company is currently involved in various legal actions, including class action lawsuits, but management believes these will not have a material adverse effect on financial statements[81] - The company has received tax assessments related to BEFIEX credits totaling approximately 2.4 billion Brazilian reais (approximately$420 million) as of March 31, 2025, which are being disputed[71] Dividends and Share Repurchase - The company declared dividends totaling $97 million in the first quarter of 2025, compared to$94 million in the same period of 2024[105] - The share repurchase program has approximately $2.5 billion remaining as of March 31, 2025, with no shares repurchased during the first quarter of 2025[109] Future Outlook - The company anticipates delivering over$200 million in cost take out and expanding margins in 2025 despite a challenging macro environment[135] - The company expects flat industry demand in North America and a growth of 0-3% in Latin America, with Asia expected to grow by 3-5%[200]