STOCKHOLM (Reuters) – Electrolux, Europe’s biggest maker of home appliances, said on Friday it expects demand to fall further due to inflation and high interest rates as costs soar, particularly in North America, caused it to suffer a loss in the third quarter.
“Market demand in Europe and North America for the full year 2023 is expected to continue to deteriorate, i.e. be negative year-on-year,” the director said. General Jonas Samuelson.
In a conference call, Jonas Samuelson said that Electrolux suffered severe supply chain and production disruptions in North America during the third quarter.
The COVID-19 pandemic and component shortages have delayed the group’s North American production ramp-up despite massive investments in recent years.
The group announced that its cost reduction program presented last month provided for the elimination of 4,000 positions, while it had 52,000 employees at the end of 2021.
Electrolux said this group-wide savings plan and the reorganization of its North American division would have a positive effect of 4 to 5 billion crowns (366 to 457 million euros) on its financial results in 2023. , and that it would enter a restructuring charge of 1.2 to 1.5 billion crowns in the accounts for the current quarter.
The title Electrolux gained 2.32% at 10:55 GMT on the Stockholm Stock Exchange, after having fallen by around 40% since the start of the year.
The group recorded an operating loss of 385 million crowns in the third quarter, against a profit of 1.64 billion a year earlier. The North American division suffered a loss of 1.2 billion crowns.
(Written by Anna Ringstrom, French version Elena Smirnova)
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