Whirlpool has reported a sharp decline in first-quarter performance, citing weaker US consumer confidence and a recession-level slowdown in the North American appliance market.
© Oasisamuel | Dreamstime
The manufacturer said worsening macroeconomic conditions linked to the Iran conflict had affected demand during February and March. Chairman and chief executive Marc Bitzer said the company had acted decisively on pricing and costs following the rapid deterioration in trading conditions.
Whirlpool confirmed it is introducing a double-digit price increase in North America, its largest in more than a decade, as it seeks to restore margins after several years of inflationary pressure and higher input costs.
The group's North American major domestic appliance division recorded a 7.5% drop in sales to $2.24 billion in the first quarter, while EBIT margins fell from 6.2% to 0.3%. The company attributed the decline to lower volumes, market disruption and unfavourable pricing conditions.
Overall group sales decreased 9.6% year-on-year to $3.27 billion, with Whirlpool posting a net loss of $85 million compared with a $71 million profit in the same period last year.
Despite the challenging quarter, Whirlpool said it expects pricing actions and restructuring measures to support profitability through the remainder of 2026. The company is targeting full-year EBIT margins of around 4%, supported by more than $150 million in structural cost savings.
The update may raise concern among kitchen and appliance retailers over further supplier price pressure, particularly as manufacturers continue to face higher steel, resin and component costs, as well as broader uncertainty around tariffs, trade conditions and global supply chains.
Source: www.kbbreview.com
