Whirlpool Corp. (NYSE:WHR) Q2 2020 Earnings Conference Call - Final Transcript
Jul 23, 2020 • 08:00 am ET
Good morning and welcome to Whirlpool Corporation's Second Quarter 2020 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, Roxanne Warner.
Thank you and welcome to our second quarter 2020 conference call. Joining me today are Marc Bitzer, our Chairman and Chief Executive Officer, and Jim Peters, our Chief Financial Officer.
Our remarks today track with the presentation available on the Investor section of our website at whirlpoolcorp.com. Before we begin, I 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-Q and other periodic reports.
We also 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 results from our ongoing business operations. We also think the adjusted measures will provide you a better baseline for analyzing trends in our ongoing business operations.
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. Also, as we highlight on Slide 2, there is significant uncertainty about the duration and potential impact of the COVID-19 pandemic. Therefore, our discussion of the potential impact of COVID-19 on the company's business results reflects our best estimate based on what we know today.
At this time, all participants are in a listen-only mode. Following our prepared remarks, the call will be open for analyst questions. As a reminder, we ask that participants ask no more than two questions.
With that, I'll turn the call over to Marc.
Thanks, Roxanne and good morning, everyone. I hope you and your families are staying healthy and safe during these times. Before I begin, I want to acknowledge the hard work of all our employees throughout this year. I'm extremely proud of their unwavering dedication and commitment to Whirlpool and our customers through these difficult times.
We discuss our second quarter 2020 highlights. We delivered resilient results globally with ongoing earnings per diluted share of $2.15 and an ongoing EBIT margin of 5.2%, despite significant and continued COVID-19 related challenges.
In North America, we delivered a very strong performance of 12.6% EBIT margins, an expansion of 20 basis points and a clear indication of the region's strength and agility. Across the globe, we took decisive and meaningful actions, driving strong levels of cost take out. Lastly, we delivered year-over-year free cash flow improvement of $124 million due to strong working capital management, particularly in accounts receivables and inventory.
Turning to Slide 5. We show the drivers of our second quarter EBIT margin. Price/mix negatively impacted margin by 75 basis points, as unfavorable product mix shifts, due to COVID-19 related consumer