Electrolux: sanctioned for profit warning
(CercleFinance.com) - Electrolux shares are down 2% on the OMX as the Swedish appliance maker reports weaker-than-expected market demand and weak Q3 earnings, which has led it to decide to implement a cost-cutting program.
So far, demand in Europe and the US in Q3 is expected to have declined at a significantly accelerated pace compared to Q2, the group said, blaming high inflation and low household confidence.
Combined with supply chain imbalances, it expects Q3 results to be significantly lower than in Q2, even excluding one-off exit costs from the Russian market.
As a result, Electrolux has decided to immediately launch a variable and structural cost reduction program and a turnaround plan in North America, a region for which a new head, Ricardo Cons, has been appointed.
Copyright (c) 2022 CercleFinance.com. All rights reserved.
So far, demand in Europe and the US in Q3 is expected to have declined at a significantly accelerated pace compared to Q2, the group said, blaming high inflation and low household confidence.
Combined with supply chain imbalances, it expects Q3 results to be significantly lower than in Q2, even excluding one-off exit costs from the Russian market.
As a result, Electrolux has decided to immediately launch a variable and structural cost reduction program and a turnaround plan in North America, a region for which a new head, Ricardo Cons, has been appointed.
Copyright (c) 2022 CercleFinance.com. All rights reserved.