Electrolux: further loss expected due to the USA

(CercleFinance.com) - Swedish household appliance manufacturer Electrolux announced on Friday that it expects a loss for Q4, mainly due to difficulties in North America.


The group anticipates an operating loss, excluding non-recurring items, of around 700m SEK in the last three months of 2023, compared with a loss of 600m SEK a year earlier.

The operating loss from the North American branch alone is expected to increase to 1.4bn SEK, compared with -1.2bn SEK in Q4 2022.

Electrolux explains that it has been penalised by increased pressure on sales prices and high costs, but also by lower business volumes following a disappointing Black Friday season.

Q4 net sales are thus expected to come in at around 35.6bn SEK, representing organic y-o-y growth of around 1%.

Taking into account exceptional charges, notably related to restructuring in North America, ITS Q4 loss is expected to reach 2.5bn SEK, compared with -1.4bn SEK a year earlier.

On the stockmarket, Electrolux shares were hit by this warning, falling by over 5% in late trading on Friday in Stockholm.


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