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(Sharecast News) - Shares in Whirlpool Corp dropped on Wall Street on Thursday after the American home appliances group slashed its earnings guidance almost in half and stepped up cost-saving and pricing actions amid a sinking of consumer confidence.
The company, known for its flagship eponymous brand alongside others including KitchenAid and Maytag, said it was taking "decisive actions [...] to restore profitability", including double-digit price increases and an acceleration of cost take out initiatives.
The Iran war has resulted in a "recession-level industry decline in the US as consumer confidence collapsed in late February and March", Whirlpool said, which has contributed to lower demand for big-ticket purchases.
As a result, Whirlpool said full-year earnings per share are expected to come in at $3.00-3.50, compared with $6.23 the year before and earlier guidance of around $6.00.
Meanwhile, the dividend has been suspended as the firm prioritises paying down debt, which it expects to cut by $900m this year from the $5.56bn mark as of 31 March.
The latest forecasts came as the company reported a 9.6% drop in sales over the first quarter to $3.27bn, and a 79.6% drop in ongoing earnings before interest and tax to $44m.
Whirlpool shares were down 12.6% at $47.86 by 1641 BST, dropping as much as 18% earlier on to reach levels not seen since 2011.
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