Whirlpool Corporation (WHR) has said the profit for the quarter ended Dec. 31, 2016 was unchanged at $180 million or $2.36 a share, when compared with the last year period. On an adjusted basis, earnings per share were at $4.33 for the quarter compared with $4.10 in the same period last year. Revenue during the quarter went up marginally by 1.73 percent to $5,656 million from $5,560 million in the previous year period. Gross margin for the quarter contracted 114 basis points over the previous year period to 16.88 percent. Total expenses were 94.08 percent of quarterly revenues, up from 93.17 percent for the same period last year. That has resulted in a contraction of 91 basis points in operating margin to 5.92 percent.
Operating income for the quarter was $335 million, compared with $380 million in the previous year period.
However, the adjusted operating income for the quarter stood at $425 million compared to $468 million in the prior year period. At the same time, adjusted operating margin contracted 90 basis points in the quarter to 7.51 percent from 8.42 percent in the last year period.
"We delivered our fifth consecutive year of record ongoing earnings per share through the continued execution of our long-term strategic priorities," said Jeff M. Fettig, chairman and chief executive officer of Whirlpool Corporation. "We also continued to create value through our capital allocation strategy, funding our innovation programs with strong levels of investment while returning a record $800 million to shareholders through dividends and share repurchases."
For fiscal year 2017, Whirlpool Corporation projects operating income to be in the range of $1,625 million to $1,725 million and adjusted operating income to be in the range of $1,825 million to $1,925 million. The company forecasts diluted earnings per share to be in the range of $13.25 to $14.25. It company forecasts diluted earnings per share to be in the range of $15.25 to $16.25 on adjusted basis.
Operating cash flow falls marginally
Whirlpool Corporation has generated cash of $1,203 million from operating activities during the year, down 1.80 percent or $22 million, when compared with the last year. The company has spent $588 million cash to meet investing activities during the year as against cash outgo of $681 million in the last year. It has incurred net capital expenditure of $597 million on net basis during the year, down 8.44 percent or $55 million from year ago.
The company has spent $278 million cash to carry out financing activities during the year as against cash outgo of $707 million in the last year period.
Cash and cash equivalents stood at $1,085 million as on Dec. 31, 2016, up 40.54 percent or $313 million from $772 million on Dec. 31, 2015.
Debt moves up
Whirlpool Corporation has witnessed an increase in total debt over the last one year. It stood at $4,470 million as on Dec. 31, 2016, up 11.81 percent or $472 million from $3,998 million on Dec. 31, 2015. Total debt was 23.34 percent of total assets as on Dec. 31, 2016, compared with 21.03 percent on Dec. 31, 2015. Debt to equity ratio was at 0.78 as on Dec. 31, 2016, up from 0.70 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 7.79 for the quarter from 9.27 for the same period last year.
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