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STOCKHOLM (Reuters) – Europe’s biggest home appliances maker Electrolux on Friday reported a third-quarter loss as costs soared, especially in North America, and demand slowed, and it predicted inflation and high interest rates to lead to further declines.
“Market demand in both Europe and North America for the full-year of 2023 is expected to further deteriorate, i.e. be negative year-over-year,” Chief Executive Jonas Samuelson said in a statement.
The group made an operating loss of 385 million Swedish crowns in the third quarter ($35.1 million) from a year-earlier profit of 1.64 billion. The North America division reported a loss of 1.2 billion crowns.
Electrolux in September warned profits would drop as high inflation and low consumer confidence squeezed demand and large investments in North America had yet to pay off, and it announced plans to cut costs.
On Friday, it said the group-wide cost cutting and North America turnaround programme would have a 4-5 billion crown positive earnings effect in 2023, and it would book a 1.2-1.5 billion restructuring charge for the programme this quarter.
($1 = 10.9679 Swedish crowns)
