Whirlpool warns of ‘recession-level’ slump as Iran war and tariff ruling hit sales
Summary
Whirlpool warned that the war in Iran and economic worries are causing Americans to delay buying big appliances. The company reported a nearly 10% drop in revenue and is raising prices to manage rising costs. Whirlpool also lowered its yearly profit expectations and paused its dividend payments.Key Facts
- Whirlpool makes brands like KitchenAid and Maytag and produces most appliances in the U.S.
- Sales of major appliances in North America dropped over 7%, causing revenue to fall nearly 10% in the latest quarter.
- The war in Iran led to a sharp drop in consumer confidence and spending on large items.
- Whirlpool raised prices by 10% in April and will increase prices by another 4% in July to cover higher costs.
- The company lost $82 million in the first quarter this year after previously making gains.
- The U.S. Supreme Court struck down emergency tariffs that affected Whirlpool and its competitors, causing market disruption.
- Consumers are avoiding expensive appliance purchases due to concerns about grocery and gas prices.
- Whirlpool lowered its full-year earnings forecast and suspended its dividend to focus on reducing debt.
- Whirlpool's stock price fell over 12% after the earnings report.
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