Whirlpool Just Ended a 70-Year Streak

Whirlpool just broke a seven-decade streak that survived wars, recessions, and inflation—but not its current cash squeeze. The 113-year-old appliance maker is halting its quarterly dividend "until further notice," ending a 70-year payout tradition and jolting investors, reports the Wall Street Journal. The stock sank more than 20% intraday Thursday before closing down about 12%, and is off more than 80% over five years.

"War in Iran resulted in recession-level industry decline in the US as consumer confidence collapsed in late February and March," the company said in its earnings filing, per CNBC. CEO Marc Bitzer said the company doesn't generate enough cash to both reward shareholders and whittle down its hefty debt load, adding that any return of the dividend hinges on better profit margins. Whirlpool has already nearly halved the payout once, in August. It's now trying to rebuild finances with price hikes on washers, dryers, fridges, and stoves—moves Bitzer conceded will likely exceed rivals' increases—as it faces falling sales and a surprise quarterly loss.

Whirlpool is also betting that new 25% tariffs on imported appliances will tilt the playing field its way against Samsung, LG, and Haier-owned GE Appliances, even as activist investor David Tepper presses for broader strategic changes.