=Whirlpool (WHR) reported earnings on Mon 23 Oct 2017 (a/h)

Whirlpool misses by $0.10, misses on revs; guides FY17 EPS below consensus; announces global cost-based price increases; announces a $150 million fixed cost reduction initiative 

• Reports Q3 (Sep) ongoing earnings of $3.83 per share, excluding non-recurring items, $0.10 worse than the Capital IQ Consensus of $3.93; revenues rose 3.2% year/year to $5.42 bln vs the $5.50 bln Capital IQ Consensus.
• Co issues downside guidance for FY17, sees ongoing EPS of $13.60-13.90, excluding non-recurring items, vs. $14.62 Capital IQ Consensus Estimate and down from prior guidance of $14.50-15.00, driven by unfavorable raw material inflation and product price/mix.
• Co announces global cost-based price increases on a majority of its business to offset the impact of sustained raw material inflation.
• Co also announces a $150 million fixed cost reduction initiative, which is in addition to ongoing cost productivity efforts.
• The North America region reported 5% revenue growth and 11.7% operating margin, despite a 90 basis point raw material cost increase.
• "We are pleased with our revenue growth and free cash flow improvement but are not satisfied with our operating margins, which were impacted by raw material inflation, unfavorable price/mix and slow progress on our European integration...Thus, we are implementing strong actions to deliver our long-term goals, including recently-announced global cost-based price increases and a fixed cost reduction initiative."
• Co repurchased approximately $200 million of common stock during Q3 and plans to continue repurchasing common stock this year.
• "We reaffirm our 2020 goals and are confident that our existing and newly-announced actions will put us firmly back on track to deliver our commitments...As we continue to execute our plans for value creation, we will continue returning strong levels of cash to our shareholders."