Whirlpool Corporation (WHR) saw its stock plummet nearly 14% in after-hours trading on Wednesday after the company reported a net loss of $323 million, or $5.87 per diluted share, for 2024. The lackluster performance was weighed down by several key factors:
Key Factors Contributing to the 2024 Loss:
- The loss on sale of its European major domestic appliances business
- Impairment charges related to its Maytag brand
- Restructuring costs
Whirlpool's 2024 results fell short of analysts' estimates and marked a significant decline from the prior year's profit.
However, the company provided an optimistic outlook for 2025, forecasting:
- Full-year GAAP earnings per diluted share of approximately $8.75
- Ongoing earnings per diluted share of around $10.00
- More than $200 million in structural cost reductions
- Debt paydown of approximately $700 million
- Anticipated net cash proceeds of $550 to $600 million from reducing its ownership stake in Whirlpool of India Ltd.
Whirlpool's management expressed confidence in the company's ability to rebound in 2025, driven by its cost-cutting initiatives, portfolio restructuring, and improved financial flexibility.