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$WHR 2Q15 Q&A: McGrath from MKM asked about $40MM negative impact was that from all three things that you mentioned that Canada, the product transition & the inventory adjustments. Marc explained that it's all three things combined. Of course that is a rough estimate, but that gives you a sense in terms what our potential in Q2 was.
For full-year 2018, $WHR expects GAAP diluted EPS of $12.45-13.45 and ongoing diluted EPS of $14.50-15.50. The company expects to generate cash from operating activities of approx. $1.7-1.8Bil and free cash flow of approx. $1-1.1Bil for FY18.
$WHR reported a net loss of $268MM or $3.69 per share in 4Q17 compared to a net income of $180MM or $2.36 per share in 4Q16. This includes a one-time non-cash charge of approx. $420MM related to tax reform. 4Q17 ongoing diluted EPS was $4.10. Net sales were $5.7Bil, up 1% compared to the prior-year period.
For full-year 2017, $WHR expects GAAP EPS of $11.10-11.40 and ongoing EPS of $13.60-13.90. The company expects to generate cash from operating activities of $1.55-1.6Bil and free cash flow of approx. $900MM. Capital spending is expected to be $650-700MM for 2017.
$WHR reported net income of $276MM or $3.72 per share in 3Q17 compared to $238MM or $3.10 per share in 3Q16. GAAP net earnings were positively impacted by lower income tax expense of approx. $65MM during 3Q17. Ongoing EPS was $3.83 in 3Q17. Net sales were $5.4Bil, an increase of more than 3% versus last year.
Jeff Fettig, $WHR Chairman and CEO since 2004, will step down as CEO and continue in his role as Chairman of the BoD. The Board has elected Marc Bitzer, the company's current President and COO, to succeed Fettig as CEO. These changes will become effective October 1.
$WHR said it is filing safeguard petition with the U.S. International Trade Commission to address the repeated efforts by Samsung and LG to evade the US trade laws. The move comes after the government found residential washers were being unlawfully imported and dumped into the country by Samsung and LG, against the interest of local manufacturers.
$WHR reached an agreement to acquire Yummly. The acquisition strengthens $WHR's ability to bring purposeful, consumer-relevant innovations to market in the emerging IoT space. As subsidiary, Yummly will continue to operate out of its headquarters in Redwood City, California. The transaction is expected to be finalized in May 2017.
$WHR expects to deliver around $350MM of synergies from the Indesit integration. The company is currently fully on track to deliver these synergies. For 2017, $WHR expects to realize $75MM of incremental synergies. The company has faced some impacts related to currency and demand but it expects to achieve its original target.
$WHR stated that in the UK, YTD, it has realized 6-7% of the price increases undertaken but not yet to the full level which is required to offset the currency impact. The company’s market share in the UK has stabilized and has reached pre-Brexit levels. $WHR does not expect the Brexit impact to be a headwind anymore going forward.
$WHR said its expectations for Europe are unchanged and this is a high value-creating business. 1Q17 was challenging but the company believes this is temporary. As $WHR came to the end of its factory and product platform integration, this along with some other issues caused supply chain disruptions. $WHR expects to see improvement in 2Q17.
$WHR reported 1Q17 net sales of $2.6Bil in North America compared to $2.4Bil in 1Q16. Europe, Middle East and Africa reported net sales of $1Bil compared to $1.2Bil in 1Q16. Latin America reported net sales of $818MM versus $705MM last year. Asia reported net sales of $419MM compared to $371MM in the prior-year period.
For full-year 2017, due to temporary integration challenges in the EMEA region, $WHR expects diluted EPS of $12.65-13.40 and ongoing business diluted EPS of $14.75-15.50. The company continues to expect to generate cash from operating activities of $1.7-1.75Bil and free cash flow of approx. $1Bil.
$WHR reported an increase in 1Q17 earnings helped by revenue growth and margin expansion. Net earnings were $153MM or $2.01 per share compared to $150MM or $1.92 per share in 1Q16. Net sales were $4.8Bil compared to $4.6Bil last year. Excluding the impact of currency, sales increased 3%.
$WHR elected 13 individuals to its board of directors. Samuel R. Allen, Marc R. Bitzer, Greg Creed, Gary T. DiCamillo, Diane M. Dietz, Gerri T. Elliott, Jeff M. Fettig, Michael F. Johnston, John D. Liu, Harish Manwani, William D. Perez, Larry O. Spencer and Michael D. White were elected to the board for one-year terms, expiring in 2018.