By Apratim Sarkar and Nandan Mandayam
May 7 (Reuters) – Whirlpool shares plunged to their lowest in more than 14 years on Thursday, after the home appliance maker slashed its full-year profit forecast by half and suspended dividend.
High interest rates, sluggish housing turnover and cautious consumer spending amid persistent inflation have weighed on replacement demand, prompting heavy discounting across the U.S. household appliances sector and squeezing margins.
The Middle East conflict has compounded the pressure, tightening household budgets through a spike in energy prices.
“The war in Iran amplified consumer concerns about the cost of living. The consumer sentiment index in U.S. plunged, reaching the lowest level on record in March,” Whirlpool CEO Marc Bitzer said on a call with analysts on Thursday.
“Consumers are holding back on replacing products and rather repairing them.”
The company slashed 2026 adjusted per-share profit forecast on Wednesday to $3-$3.5, from about $7 earlier.
Whirlpool forecast annual revenue at $15 billion, below its prior range of $15.3 billion to $15.6 billion, as it expects industry-wide appliance sales in top market North America to drop 5%. Its shares were down over 13% at $47.45.
The company suspended its dividend to free up cash and accelerate debt paydown. It targets over $900 million of debt reduction in 2026, more than double the $400 million it intended to reduce at the start of the year, with a goal of bringing long-term debt under $5 billion.
Beset by falling sales over the last four years, Whirlpool has been focused on reducing leverage as part of its capital allocation strategy.
Its debt-to-equity ratio stands at around two times, according to Reuters calculations, with cash and cash equivalents having reduced by nearly 40% on-year as of March end.
Whirlpool shares have declined 34% so far this year, underperforming the Dow Jones U.S. Consumer Goods index, which is down 2%.
(Reporting by Apratim Sarkar and Nandan Mandayam in Bengaluru; Editing by Shilpi Majumdar)
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