Welbilt CEO says sees 'clear path to profitable growth'
"Welbilt has a strong foundation with significant opportunity for enhanced profitable growth," said CEO Bill Johnson. "We have leading brands that customers prefer due to our innovation leadership and our commitment to our channel partners. We are committed to further improving our customers' experience by effectively going to market as a portfolio of brands, making Welbilt the easiest company to do business with in the commercial foodservice equipment industry. We are investing in automated controls, system solutions and connectivity across all of our brands to maintain our leadership in solving customers' system needs." "I see a clear path to profitable growth by continuing to drive brand preference with our customers, being disciplined with our value pricing philosophy and embedding operational excellence throughout the entire organization. We have begun to execute our Transformation Program, which focuses on improving our global manufacturing and distribution operations, procurement, engineering, KitchenCare, sales and marketing and other corporate functions. We have detailed plans to address each of these areas and expect these actions to generate approximately $75 million, or 500 basis points, of run-rate savings by the second half of 2021. We expect to invest between $70 million and $80 million in Transformation Program and restructuring costs to deliver these savings, which provides a payback of approximately one year on this investment. Our focus on enhanced profitable growth and margin expansion will allow us to continue generating strong Free Cash Flow. We intend to focus the majority of our Free Cash Flow on deleveraging our balance sheet by reducing debt. Once strengthened, our balance sheet will become a source of additional growth - allowing us to increasingly invest on internal initiatives and future acquisitions," concluded Johnson.