Whirlpool has issued a stark warning of a 'recession-level industry decline' in the United States, attributing the downturn to the ongoing war in Iran and a recent Supreme Court ruling on tariffs. The appliance giant reported a near 10% drop in quarterly revenue and a 7% decline in North American major appliance sales, prompting it to slash its full-year earnings forecast.
The company, which owns brands such as KitchenAid and Maytag, announced a 10% price increase in April, its largest in a decade, with a further 4% hike planned for July. CEO Marc Bitzer said the scale of the North American sales slide was comparable to the global financial crisis, noting that consumer confidence collapsed in late February and March.
Whirlpool posted a first-quarter loss of $82 million, reversing last year's gains. The company had previously absorbed higher costs but said it could no longer avoid passing them on to customers. It also suspended its dividend as it seeks to reduce debt this year.
The Supreme Court's decision to strike down emergency tariffs on imported appliances has further disrupted pricing. Whirlpool estimated the tariff impact on competitors at 10-15%, compared to around 5% for its own business. Consumers, already facing high grocery and petrol prices, are delaying big-ticket purchases, with many opting to repair rather than replace appliances.
