Whirlpool Corp. (NYSE:WHR) Q1 2018 Earnings Conference Call - Preliminary Transcript
Apr 24, 2018 • 08:00 am ET
Good morning and welcome to Whirlpool Corporation's First Quarter 2018 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, Max Tunnicliff.
Thank you and welcome to our first quarter 2018 conference call. Joining me today are Marc Bitzer, our Chief Executive Officer and Jim Peters, our Chief Financial Officer. Our remarks today track with the presentation available on the Investors section of our website at whirlpool.com.
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 10-K and our other periodic reports. We want to remind you that today's presentation includes non-GAAP measures. We believe 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 the adjusted measures will provide you with a better baseline for analyzing trends in our ongoing business. Listeners are directed to the supplemental information package posted on the Investor Relations section of our website for the reconciliation of non-GAAP items to the most directly comparable GAAP measures.
As a reminder, effective January 1 of this year, we are reporting and guiding segment results as earnings before interest and taxes. In addition, our segment results reflect the Mexico business as part of the Latin America segment and certain adjacent businesses that have been moved from the North America segment to the Asia segment. At this time, all participants are in listen-only mode. Following our prepared remarks, the call will be opened for analyst questions. As a reminder, we ask that participants ask no more than two questions.
With that, let me turn the call over to Marc.
Well, thanks and good morning everyone. Before we discuss our first quarter results, I would like to discuss the announcements we made earlier this morning following the close of the Tokyo market and board approval. We take pride in our strong global portfolio of consumer brands and Embraco was essentially our only B2B business and we made the strategic decision to focus our investments on growing our consumer-facing businesses. Persistent with the strategy, earlier today, we announced agreement to sell our Embraco compressor business unit for approximately $1.1 billion in cash. Embraco is a leading global manufacturer of refrigeration compressors, which is currently reported as part of our Latin America segment. And in 2017, Embraco contributed approximately $1.3 billion in sales as margins approximating the segment average. The deal is expected to close in early 2019 subject to regulatory approvals.
Based on the anticipated closing date, the deal is not expected to have material impact on our 2018 financial results. However, we have secured financing in an amount similar to the anticipated net proceeds from the