Whirlpool Corporation (WHR) has reported an 1.12 percent fall in profit for the quarter ended Jun. 30, 2015. The company has earned $177 million, or $2.21 a share in the quarter, compared with $179 million, or $2.25 a share for the same period last year. Revenue during the quarter grew 11.23 percent to $5,208 million from $4,682 million in the previous year period. Gross margin for the quarter expanded 57 basis points over the previous year period to 17.38 percent. Total expenses were 94.76 percent of quarterly revenues, up from 93.78 percent for the same period last year. That has resulted in a contraction of 97 basis points in operating margin to 5.24 percent.
Operating income for the quarter was $273 million, compared with $291 million in the previous year period.
Operating cash flow remains negative
Whirlpool Corporation has spent $397 million cash to meet operating activities during the first half as against cash outgo of $368 million in the last year period. The company has spent $243 million cash to meet investing activities during the first six months as against cash outgo of $290 million in the last year period. It has incurred net capital expenditure of $234 million on net basis during the first six months, down 7.87 percent or $20 million from year ago period.
Cash flow from financing activities was $342 million for the first six months, up 59.07 percent or $127 million, when compared with the last year period. It has made net debt repayment of $489 million. It has spent net of $14 million on repurchase of common stocks.
Cash and cash equivalents stood at $691 million as on Jun. 30, 2015, down 26.88 percent or $254 million from $945 million on Jun. 30, 2014.
Working capital drops significantly
Whirlpool Corporation has witnessed a decline in the working capital over the last year. It stood at $77 million as at Jun. 30, 2015, down 91.69 percent or $850 million from $927 million on Jun. 30, 2014. Current ratio was at 1.01 as on Jun. 30, 2015, down from 1.15 on Jun. 30, 2014.
Cash conversion cycle (CCC) has decreased to 12 days for the quarter from 17 days for the last year period. Days sales outstanding went down to 24 days for the quarter compared with 42 days for the same period last year.
Days inventory outstanding has decreased to 33 days for the quarter compared with 64 days for the previous year period. At the same time, days payable outstanding went down to 44 days for the quarter from 89 for the same period last year.
Debt increases substantially
Whirlpool Corporation has witnessed an increase in total debt over the last one year. It stood at $4,757 million as on Jun. 30, 2015, up 71.36 percent or $1,981 million from $2,776 million on Jun. 30, 2014. Total debt was 24.38 percent of total assets as on Jun. 30, 2015, compared with 17.79 percent on Jun. 30, 2014. Debt to equity ratio was at 0.81 as on Jun. 30, 2015, up from 0.52 as on Jun. 30, 2014. Interest coverage ratio deteriorated to 6.82 for the quarter from 7.28 for the same period last year.
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