Whirlpool dropped 4.7% its sales and 8% its profits

Whirlpool Corporation reported that its net sales decreased 4.7% year-on-year in 2020, to $ 19.456 million.

Similarly, its net earnings fell 8% year-on-year, to $ 1.075 billion.

More than anything else, Whirlpool consolidated net sales in 2020 decreased driven by the sale of the Embraco compressor business, lower volumes and unfavorable foreign currency, partially offset by the favorable impact of the product price/mix.

With approximately 78,000 employees, Whirlpool is a world leader in kitchen and laundry appliances, manufactures products in 13 countries and markets goods in almost every country in the world.

In addition, the company conducts its business through four operating segments, which it defines based on geography.

Whirlpool’s operating and reportable segments consist of North America, Europe, Middle East and Africa (EMEA), Latin America and Asia.

Whirlpool

On April 24, 2018, the company and some of its subsidiaries entered into an agreement with Nidec Corporation, a leading manufacturer of electric motors incorporated under the laws of Japan, to sell its Embraco business unit.

On June 26, 2019, Whirlpool and Nidec received final approval of the Transaction from the European Commission, and the parties closed the transaction on July 1, 2019.

At closing, pursuant to the purchase agreement and a subsequent agreement commemorating the purchase price adjustment, Whirlpool received $ 1.1 billion, including advance cash available at closing.

Whirlpool has agreed to retain certain responsibilities related to taxes, environment, labor and products after the closing of the transaction.

Then, August 9, 2019, the company paid $ 1 billion pursuant to Whirlpool’s Term Loan Agreement of April 23, 2018 by and between Whirlpool, Citibank, NA, as Managing Agent, JP Morgan Chase Bank, NA as a Distribution Agent and certain other financial institutions, representing the full repayment of amounts borrowed under the term loan.