Whirlpool Corp WHR
Q2 2013 Earnings Call Transcript

Transcript Call Date 07/19/2013

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

For opening remarks and introduction, 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's second quarter 2013 conference call. Joining me today are Jeff Fettig, our Chairman and CEO; Presidents Mike Todman and Marc Bitzer; as well as 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 the 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 29 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 second quarter results reflect strong revenue growth in every region around the world. As I have outlined in the last several quarters we continue to manage all the drivers that impact our margins and once again had significant margin expansion during the quarter. These results mark the sixth consecutive quarter of year-over-year ongoing business operations margin expansion.

Given the strong underlying trends that we see in our business we are raising our whole year ongoing business operations EPS outlook to $9.50 to $10 per share up $0.25 from our previous guidance and our free cash flow to between $650 million and $700 million up $50 million from our previous guidance.

Our second quarter results are summarized on Slide 6. Excluding the impact of foreign currency and BEFIEX our revenues were up approximately 6% versus last year. Our diluted earnings per share from ongoing business operations improved 53%, up $0.82 to $2.37, compared to $1.55 last year. As we continue to drive higher revenue growth and expand margins our expectations for cash generation are firmly on track. All of our actions regarding our use of cash are aligned with our previously committed priorities which are appropriately funding the business particularly focused on new product innovation, which we are doing, refinancing our long-term debt. We did increase our dividend in April by 25% and recently during the second quarter we resumed our share repurchase program.

Read our Earnings Call Transcript disclaimer.
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