Electrolux Reports Third-Quarter Financials

STOCKHOLM (Reuters) – Electrolux, the world's second-largest appliance manufacturer, announced lower than expected adjusted operating profits for the third quarter, leading to a 10% drop in shares.

The Swedish company is starting to see quarterly profits, as its North American sector has improved after struggling to contribute to overall earnings due to high costs, competition from market leader Whirlpool, and issues at U.S. plants.

However, Electrolux faces stiff competition from lower-priced brands such as China's Midea, appealing to consumers affected by high interest rates.

CEO Jonas Samuelson, retiring at year-end, noted, "While market conditions remained challenging in Europe and North America, we continued to make progress on our cost initiatives."

He also commented on the European market being largely driven by replacements, describing it as relatively stable but requiring high promotional efforts.

The company warned that weak price expectations and other influences could negatively impact the fourth quarter.

"Headwinds from currencies have increased during 2024, and with reduced raw material costs expected in the fourth quarter of 2023, we anticipate external factors to negatively affect Q4 2024," it added.

Electrolux shares decreased 10% in early trading, marking a 14% decline for the year.

Adjusted operating profit, excluding one-off items, rose to 717 million crowns ($67.8 million) from 314 million crowns a year prior, though it fell short of the 855 million crown analyst forecast.

Including one-off costs, operating profit decreased to 349 million crowns from 608 million crowns.

(Exchange rate: $1 = 10.5704 Swedish crowns)