May 7 (Reuters) - Whirlpool shares plunged to their lowest level 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 inflation pressures have weighed on replacement demand, prompting heavy discounting across the U.S. household appliances sector and squeezing margins.
The ongoing Middle East conflict has compounded the pressure, tightening
household budgets further through a war-fueled spike in energy prices.
"The war in Iran amplified consumer concerns about the cost of living. As a direct result, the consumer sentiment index in U.S. plunged, reaching the lowest level on record in March," Whirlpool CEO Marc Bitzer said on a conference call with analysts on Thursday.
"Consumers are holding back on replacing products and rather repairing them."
On Wednesday, the company slashed its 2026 adjusted profit forecast to $3-$3.5 per share, from about $7 per share projected earlier.
It 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%.
Whirlpool also said it suspended its dividend to free up cash and accelerate debt reduction. It targets more than $900 million of debt reduction in 2026.
The company's shares slid nearly 14% to about $47. Its debt-to-equity ratio stands at roughly two times.
The shares, which fell 37% in 2025, have lost 34% in value so far this year. That makes the stock a laggard on the Dow Jones U.S. Consumer Goods index, which is down 2% in 2026.
(Reporting by Apratim Sarkar and Nandan Mandayam in Bengaluru; Editing by Shilpi Majumdar)
