Appliance group Whirlpool Corporation announced an expected $800 to $900million free cash flow benefit in 2023 from “strong take out” action and easing raw material inflation, at its Q4 and end of year results.

In addition, it reported expected full-year revenues for 2023 of approximately $19.4billion, down 1%-2% on the previous year.

Whirlpool reported net sales of $19.7billion in 2022, down 10.3% on 2021, and the full-year GAAP net loss margin of 7.7% driven by its EMEA business transaction.

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The company recently divested its EMEA region business to form a new entity with Arcelik.

In its Q4 trading results, Whirlpool stated sales of $4.9billion were down 15.3%, impacted by North American one-off supply disruption and demand slowdown.

Ongoing EBIT was also down from $502million in Q4 2021 falling to $171million in Q4 2022.

While in the Europe, Middle East and Africa region Q4 net sales were $1,028million, down from $1.4billion in Q4 2021 and Whirlpool reported a break even margin.

InSinkErator acquisition closed in the fourth quarter of 2022, with no material impact to the
fourth quarter results.

Chairman and chief executive office of Whirlpool Corporation Marc Bitzer said: “In 2023 we will reset our cost structure and expect to deliver $800-$900 million of cost benefit.

“This new cost structure, combined with the expected demand recovery during the second half of the year has Whirlpool well positioned to deliver sustained shareholder value.”

The free cash flow of $830million in 2022 was down from $1.65billion in 2021.

Chief financial officer of Whirlpool Corporation Jim Peters commented: “During 2022, we took decisive actions to accelerate our long-term growth trajectory by investing in our business and executing our portfolio transformation while also returning $1.3B in cash to shareholders.

“The strength of our balance sheet has allowed us to execute on our capital allocation priorities, and we continue to maintain flexibility with $2billion of cash on hand as we exit the year.”