Electrolux: swings to loss as sales drop
(CercleFinance.com) - Swedish home appliance maker Electrolux has reported a small loss on revenues that fell sharply, although it says that demand is now picking up as lockdown restrictions are being eased or removed.
For the second quarter, the company reported a net loss of 141 million Swedish kronor, compared with profit of over one billion kronor in the same period a year ago.
Sales fell to 23.5 billion kronor from 29.2 billion kronor, with organic sales down 17%, due to lower volumes.
Electrolux said that the coronavirus pandemic impacted market demand "significantly" on its main markets and also resulted in supply constraints in North America.
However, demand picked up in June, and in some markets - such as many European countries - the recovery pace in the latter part of the quarter has been "faster than predicted," it said.
Electrolux said organic growth was 3% over the past month.
Its shares were down over 3% on the Stockholm Stock Exchange after these results were announced.
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