Electrolux announces first quarter loss

Source: Manufacturing Digital

Date :28/04/2008 14:03:19

Electrolux today reported a net loss in the first three months of 2008, blaming lower sales volumes on the sharp decline in the US market.

The company also pointed to weak markets in Western Europe and increased product costs for the impact on operating income for appliances in Europe.

President and CEO of Electrolux, Hans Straberg, said that the market downturn in Europe and North America had negatively affected its results.

“As everyone knows there is a great uncertainty about future market developments,” he said.

Outlook

Electrolux was able to report strong sales performances of professional products in Latin America and Asia, which have improved by a total of SEK 250 million. However, shares in the company have dropped close to 50 percent in the last year.

Earlier in the year, Electrolux announced that up to 400 job cuts would take place in Europe as part of a structural change aimed at reducing product costs in the region.

Despite the firm’s first quarter results, operating income at Electrolux for 2008 is expected to be in-line with 2007.

April 28, 2008