STOCKHOLM - Electrolux Group has reported a challenging fourth quarter, with operating losses reaching SEK -0.7 billion, and its North America division experiencing a significant downturn, posting a loss of SEK -1.4 billion ($1 = SEK10.29). Despite the setbacks, the Swedish multinational home appliance manufacturer maintains a positive outlook for the full year.
The company's net sales for the quarter stood at approximately SEK 35.6 billion, marking an organic decrease of roughly -1%. The total operating income for the period was negative, at SEK -3.2 billion, which includes substantial non-recurring charges close to SEK -2.5 billion.
Electrolux's North American operations faced a host of challenges, including intensified competition, a slump in demand during critical sales periods, and elevated production costs, especially when compared to Asian manufacturers. The Springfield manufacturing facility encountered specific issues that led to further costs and supply chain disruptions. Despite these difficulties, Electrolux anticipates that efficiency and volume outputs at the Springfield plant will return to normal by the end of 2024.
Looking ahead, Electrolux is optimistic about its financial health, forecasting an operating cash flow after investments of around SEK 3 billion for the full year.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.