Whirlpool Corp WHR
Q1 2013 Earnings Call Transcript

Transcript Call Date 04/24/2013

Operator: Good morning, and welcome to Whirlpool Corporation's First Quarter 2013 Earnings Release Call. Today's call is being recorded.

For opening remarks and introductions, I would like to turn the call over to Senior Director of Investor Relations, Joe Lovechio.

Joe Lovechio - Senior Director, IR: Thank you, and good morning. Welcome to the Whirlpool Corporation first quarter 2013 conference call. Joining me today are Jeff Fettig, our Chairman and CEO; Mike Todman, President of Whirlpool International; Marc Bitzer, President of Whirlpool, North America; and Larry Venturelli, our Chief Financial Officer. Our remarks today track with the presentation available on the Investors section of our website at

Before we begin, let me remind you that as we conduct this call, we will be making forward-looking statements to assist you in understanding Whirlpool Corporation's future expectations. Our actual results could differ materially from these statements due to many factors discussed in our latest 8-K, 10-K, and 10-Q, as well as in the appendix of this presentation.

Turning to Slide 3, we want to remind you that today's presentation includes non-GAAP measures. We believe that these measures are important indicators of our operations as they exclude items that may not be indicative of or are unrelated to results from our ongoing business operations. We also think that the adjusted measures will provide you with a better baseline for analyzing trends in our ongoing business operations.

Listeners are directed to the appendix section of our presentation beginning on Slide 31 for the reconciliation of non-GAAP items to the most directly comparable GAAP measures.

With that, let me turn the call over to Jeff.

Jeff M. Fettig - Chairman and CEO: Good morning, everyone, and thank you again for joining us today. As you saw in our earning release from earlier this morning, our first quarter results were in line with our expectations as we continue to expand our margins and improve our operating results. We are on track to deliver our operating profit margin, EPS and free cash flow guidance for 2013 primarily due to the strong execution of our business priorities.

We've outlined these priorities over the last several quarters and they remain unchanged. We expect to realize cost based pricing actions. We continue to introduce mix enhancing new product innovation in products. We continue to reduce our fixed cost structure and we're delivering on ongoing cost productivity programs.

The first quarter results mark the fifth consecutive quarter of year-over-year ongoing business operation's margin expansions, and we expect continued margin expansion, higher revenue growth and higher cash generation as we progress throughout the year.

If you turn to Slide 6, you can see our first quarter results were summarized there. As expected, excluding the impact of foreign currency and BEFIEX, our revenues were essentially flat versus the first quarter of last year. Our diluted earnings per share from ongoing business operations improved $0.56 per share of 40% to $1.97 compared to the $1.41 last year. And, first quarter, our (indiscernible) usage improved from last year and we are on track to meet our full year guidance as cash generation ramps up during the second half of the year.

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