Whirlpool says Iran war causing 'recession-level industry decline.' The shares are down 20%

Key Points:

• Whirlpool's shares plunged 20% in premarket trading after the company warned that the war in Iran caused a severe downturn in U.S. appliance sales due to collapsing consumer confidence and higher fuel prices.
• The company reported a recession-level industry decline in late February and March, marking a stark corporate warning about the economic fallout from the conflict.
• Whirlpool cut its full-year earnings guidance by roughly half, lowering its forecast to $3-$3.50 per share from about $6, and announced it will suspend its dividend to focus on debt reduction.
• CEO Marc Bitzer emphasized quick cost-cutting and pricing adjustments amid deteriorating macroeconomic conditions and highlighted structural advantages from recent trade policy changes favoring American-made products.
• The downturn in big-ticket appliance purchases contrasts with more resilient consumer spending in travel and entertainment sectors, even as consumer confidence hit record lows due to rising gasoline prices linked to the Iran war.