Whirlpool Q1 Results Fail To Cheer Investors, Reaffirms Full Year Guidance

Whirlpool Corporation WHR disclosed its GAAP net earnings fell to $150 million, or $1.92 per share in the first quarter from $191 million, or $2.38 per share in the year-ago quarter. However, its ongoing business earnings grew to $2.63 a share from $2.14 in the same prior-year period. The company attributed it to acquisition synergies, the gains of cost and capacity-reduction initiatives and ongoing cost productivity.

Whirlpool's net sales also fell to $4.6 billion from $4.8 billion in the previous year quarter. The company added that excluding the impact of currency, sales would have grown by 1 percent. Street analysts estimated the company to earn $2.68 a share on revenue of $4.69 billion.

The company's Chairman and CEO, Jeff Fettig, said "Our record first-quarter results were in line with our expectations and we completed our existing share repurchase program. We remain confident in our ability to deliver our 2016 guidance as we capitalize on robust demand in the U.S., new product introductions and strong productivity around the globe."

Whirlpool also announced $1 billion share buyback program apart from increasing dividend by 11 percent to $0.90 a share from $0.75 a share. Similarly, the company reaffirmed its free cash flow guidance of $700-$800 million for the year 2016.

Fettig said further, "Our strategy to create long-term value for our shareholders remains unchanged. We remain focused on delivering substantial shareholder value by leveraging our leading brand and product innovation, larger global footprint and best cost structure. In addition to our strong business performance, with our $1 billion share repurchase program and increased dividend we have appropriate flexibility to deliver on our capital allocation priorities."