Electrolux’s operating loss nearly tripled in the first quarter on weak demand and poor performance in North America, but the loss was smaller than expected as raw material costs eased.
The world’s second-biggest appliances maker reported on Friday (Apr 26) an operating loss of 720 million kronor (S$90.07 million) compared with a year-earlier 256 million kronor loss and a 761 million kronor loss expected on average by analysts polled by LSEG.
The Swedish group, most of whose products are in the premium segment, has been struggling to compete with lower-price rivals such as China’s Midea as cash-strapped households turn to cheaper alternatives.
“Although consumer confidence indicators seem to have bottomed out, this is, with the exception of Latin America, not yet visible in demand on our main markets,” CEO Jonas Samuelson said on Friday (Apr 26).
“The price pressure in North America and high promotional activity in other markets characterising the latter part of 2023 continued in the first quarter.”
Electrolux repeated a “neutral” full-year market outlook for Europe, Asia-Pacific and North America.
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The group late on Thursday announced that Samuelson, who has had the position for eight years, would step down on Jan 1 next year, and that its board was launching a search for his successor. REUTERS
