Whirlpool: net sales at $6 billion in the final quarter of 2014

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According to the data published on its website, Whirlpool registered net sales in the final quarter of 2014 equal to $6 billion compared to $5.1 billion during the same prior-year period, an increase of 18 percent. Excluding the impact of both foreign currency and Brazilian (BEFIEX) tax credits, sales increased approximately 22 percent. During the fourth-quarter 2014, the acquisitions contributed approximately $1 billion of net sales.

Jeff M. Fettig, chairman and chief executive officer of Whirlpool Corporation
Jeff M. Fettig, chairman and chief executive officer of Whirlpool Corporation

“We delivered another record year of earnings while building an exceptional platform for profitable growth and margin expansion for 2015 and beyond”, said Jeff M. Fettig, chairman and chief executive officer of Whirlpool Corporation. “Our integration activities remain on track to drive synergies and we will continue investing in our leading brands and the next generation of consumer relevant products”. Fourth-quarter GAAP (generally accepted accounting principles) operating profit totaled $281 million, which includes over $135 million of costs related to the acquisitions, compared to $354 million in the same prior-year period. Q4 ongoing business operating profit reached $456 million, or 7.6 percent of sales, compared to $386 million, or 7.7 percent of sales, in the same prior-year period. The benefits of the acquisitions, higher sales, ongoing cost productivity and the benefit of cost and capacity-reduction initiatives were partially offset by higher material costs, unfavorable currency and the impact of product transitions. Considering the different regions, Whirlpool North America reported fourth-quarter net sales of $2.8 billion compared to $2.7 billion in Q4 2013, an increase of over 4 percent. Whirlpool EMEA registered net sales of $1.7 billion ($0.8 billion in the same prior-year period) and Whirlpool Latin America achieved $1.3 billion ($1.4 billion in Q4 2013). Finally, Whirlpool Asia registered net sales of $282 million compared to $177 million in the same prior-year period.
For the full year 2014, GAAP net sales were $19.9 billion compared to $18.8 billion in 2013. Excluding the impact of both foreign currency and BEFIEX tax credits, sales increased over 8 percent. GAAP operating profit for the year totaled approximately $1.2 billion. Full-year ongoing business operating profit registered $1.5 billion, or 7.4 percent of sales, compared to $1.4 billion, or 7.3 percent of sales, in 2013. For the full-year 2015, the company expects to generate free cash flow of $700 million to $800 million.