Electrolux at a loss, no coupon for the second year running
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Electrolux ended the fourth quarter with a loss (as announced by the group itself in recent days) and now expects consumer sentiment to remain weak at the beginning of the year; thereafter it expects demand in the major markets to gradually stabilise over the course of the year.
On 12 January the Swedish group, the world's second-largest producer of household appliances with a important presence in Italy, warned markets that its fourth-quarter loss had increased to around SEK3.2bn ($310m) from SEK2bn a year earlier dueto high costs, intensified price competition and weak demand in North America. Sales fell by 0.8%m, resulting in an overall loss of SEK 4.113bn at the end of the year.
The company now expects demand for essential household appliances in 2024 to be relatively stable, compared to 2023, for all geographic markets.
"Looking ahead to 2024, weak consumer confidence is expected to continue, with consumers moving to lower prices and postponing purchases," said CEO Jonas Samuelsson. "However, as inflationary pressure is easing and interest rates are expected to fall, we expect demand in the major markets to stabilise during the year.
The company, which has not proposed a dividend for the second year in a row, estimates that prices will not be affected and warned that 'the contribution to organic profits from volume, price and mix combined is expected to be negative in the full year 2024', although this is likely to be partly offset by growth in premium products in the kitchen and laundry ranges.
