By John Keilman

Century-old Whirlpool has paid a dividend through 10 U.S. recessions and every global crisis since the 1950s. But the American manufacturer's cash crunch has gotten so severe that it is suspending that payment until further notice.

The news sent shares plunging more than 20% before settling down 12% on Thursday as Wall Street analysts pressed executives for clarity on the appliance maker's financial picture. The stock has dropped more than 80% over the past five years as the company's cash flow has shrunk, leaving it without enough to both pay out investors and pay down its debts. Last year, Whirlpool slashed its dividend by nearly half.

"We would like to resume the dividend as quickly as possible, but clearly, it's a board decision," Chief Executive Marc Bitzer told investors and analysts on an earnings call. "What has to be true is, basically, we need to have a better ongoing operating margin, and we want to continue to pay down our debt."

Whirlpool has hiked prices this year across its range of washers, dryers, refrigerators and stoves -- and plans to raise them again in the summer. Bitzer defended the strategy on the call, saying the company has to make up for three years of cost inflation it hasn't passed onto customers.

And Bitzer acknowledged Whirlpool's price increases will likely outpace those imposed by its competitors. "It's more, yeah," he said. "We also have a lot of new products, which I think deserve a higher value."

Whirlpool blames the Iran war for driving U.S. consumer confidence to 50-year lows as higher oil prices add to ongoing concerns about the cost of living. The company's organic net sales declined 6% year-over-year in the first quarter, and its adjusted earnings, which Wall Street had expected to be 38 cents a share, came in as a loss of 56 cents a share.

The company paid $300 million in dividends last year, marking its 70th year of making the quarterly payments to investors since its 1955 incorporation. But in August, as the company struggled with a heavy debt load, it cut the dividend for the first time in decades. Now, at least for the time being, it's gone.

Whirlpool's origin stretches back to 1911, when entrepreneur Lou Upton founded a company to sell electrified wringer-washing machines. It went on to expand its wares to other appliances such as garbage disposals and clothes dryers, outlasting rivals that were bought out or went defunct.

Today it bills itself as the last major U.S.-based kitchen and laundry appliance company. Its main competitors are the Korean giants Samsung Electronics and LG Electronics, along with GE Appliances, now owned by China's Haier Smart Home.

Those competitors have expanded their U.S. manufacturing operations in recent years, and Whirlpool says it needs cash for its own capital investments. Last month, it said it would spend $60 million on a new factory in Perrysburg, Ohio, where it will produce components and subassemblies for washers and dryers.

Whirlpool attempted to shore up its finances earlier this year by issuing $1.1 billion in new shares, but the tactic drew a harsh response from investor David Tepper, whose Appaloosa Management has been a major shareholder. He criticized management for diluting shareholder value, and said the company should consider partnerships or mergers with tariff-burdened competitors.

Whirlpool is counting on tariffs to come to its rescue, though it has made that case repeatedly since President Trump returned to office.

Bitzer said earlier tariff policies, which were based on the amount of steel used in an appliance, "left many doors open for maybe not a full declaration of a real cost." A simplified policy that took effect in April applies a flat 25% tariff on an appliance's full value, which Bitzer said gives Whirlpool the advantage over foreign rivals it has expected.

Write to John Keilman at john.keilman@wsj.com

(END) Dow Jones Newswires

May 07, 2026 20:00 ET (00:00 GMT)

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