By Dominic Chopping
STOCKHOLM – Electrolux AB said on Friday that global supply chain constraints had significantly hurt its production and sales volumes, with the situation remaining just as difficult in the second quarter.
The Swedish home appliance maker posted a net profit of 950 million Swedish krona ($96.5 million) in the first quarter, up from SEK 1.56 billion a year earlier, as sales rose 3.8 % to reach SEK 30.12 billion. Profits in the quarter were weighed down by a US tariff charge of SEK 656 million, he said.
Analysts polled by FactSet had expected a net profit of SEK 714 million on sales of SEK 30.59 billion.
Electrolux lowered its market outlook for Europe for the full year from neutral to negative, mainly due to declining consumer confidence, and lowered the outlook for the North American market to neutral. to positive due to supply constraints.
The company said it still expects Asia Pacific, Middle East and Africa markets to be positive this year, while Latin America is still expected to be negative.
Electrolux now expects lower raw material costs, commercial tariffs, currency and labor cost inflation this year by SEK 8-10 billion, SEK 6-9 billion, although that it expects to fully offset cost inflation with price increases in 2022.
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