Whirlpool warns of ‘recession-level’ slump as Iran war and tariff ruling hit sales

With the war in Iran and economic concerns putting pressure on consumers and how they spend their money, Whirlpool is having to adjust to Americans delaying big-ticket purchases while also raising prices to help stabilize its North American business. The company known for brands such as KitchenAid, Maytag and its namesake, said that the Iran war led to a “recession-level industry decline” in America as consumer confidence collapsed in late February and March. Revenue dropped nearly 10% in the quarter as sales of major appliances in North America declined more than 7%. Whirlpool appeared to be in a prime position to thrive, producing about 80% of its major appliances at American factories at a time when Donald Trump has emphasized domestic manufacturing jobs and more production at home. This week, however, the company said that revenue dropped nearly 10% in its most recent quarter and sales of major appliances in North America tumbled 7%. Whirlpool announced a 10% price hike in April, its largest in a decade, and said that a separate 4% price increase will happen in July to address “multiyear inflationary cost pressures”. The company had absorbed the higher costs, choosing not to pass them on to customers, but that must change after the company posted a first quarter loss of $82m, reversing last year’s gains. Marc Bitzer, the CEO, said on Thursday that the North American slide in sales has a precedent. …