Home appliances maker Electrolux reported a smaller fall in second-quarter core profit than expected, but said it saw a steeper fall in full-year earnings than previously forecast.
The company - whose brands include AEG, Zanussi and Frigidaire as well as its own name - said today it expected operating income for the full year in the range of 3.3 billion to 3.9 billion Swedish crowns (€411 million), excluding items affecting comparability.
The Sweden-based maker of washing machines, fridges and other white goods had previously seen operating income at the lower end of a single-digit percentage rise or fall compared with last year.
"Based on the very weak market developments we have decided to decrease our forecast for the markets in North America and Europe. A consequence of this is that we have changed our outlook for the full year," the chief executive, Hans Straberg, said in a statement issued alongside the report.
Electrolux posted earnings before interest and tax of 793 million Swedish crowns, excluding extraordinary items, versus a year-ago 921 million and a mean forecast of a 716 million in a Reuters poll of 10 analysts.
The new full-year forecast would entail a year-on-year earnings decline of between 19 and 32 per cent. Market expectations ahead of the report were for adjusted operating income of 3.9 billion crowns this year.
Electrolux sales amounted to 25.6 billion crowns in April through June versus 25.8 billion a year earlier, topping the 24.7 billion seen by analysts.
Reuters