Electrolux warns of profits as rising inflation hits demand for home appliances

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Electrolux warned that demand for its home appliances had fallen in the United States and Europe due to high inflation and low consumer confidence.

In an earnings warning on Monday, the consumer electronics group said market demand in the third quarter was “estimated to have declined at a significantly accelerated rate” from the previous three-month period. The Swedish company added that the problem had been exacerbated by high levels of inventory at retailers.

Electrolux said third-quarter earnings would decline significantly from the second quarter.

In response to lower demand, the group pledged to cut costs, saying its plan “would focus on reducing variable costs, with particular attention to eliminating cost inefficiencies in our supply chain. and production”. He also launched a recovery plan in the United States, where he appointed a new business leader.

“The group’s cost reduction program and North American turnaround program are expected to result in a significant positive contribution to earnings through both profitability and investment in innovation and marketing in 2023,” it said. he said in a statement.

Shares fell 2.4% in early trading Monday.


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