Electrolux profit misses forecast as supply chain pain lingers

The Electrolux logo is seen during the IFA Electronics show in Berlin, Germany September 4, 2014. REUTERS/Hannibal Hanschke

STOCKHOLM, July 21 (Reuters) – Sweden’s Electrolux (ELUXb.ST) reported on Thursday profits below expectations, hit by supply chain problems, as its North American business swung to a loss for the second quarter.

While supply chain issues have dented production and sales volumes at Electrolux over the past months, Europe’s biggest home appliances maker said it still expected the constraints to ease sequentially from mid-2022.

Operating profit at Electrolux, which also sell under brands such as Frigidaire, was 560 million Swedish crowns ($54.9 million) against a year-earlier 1.98 billion and a mean forecast in a Refinitiv poll of analysts of 981 million.

“It is truly disappointing that our North American business area reported a loss in the quarter,” Chief Executive Jonas Samuelson said in a statement, adding that production output and efficiency challenges, driven by supply disruptions and labour shortages, had hit earnings hard.

The white goods maker, a rival of U.S. Whirlpool (WHR.N), lowered its full-year market outlook for North America to negative from neutral, and kept its forecast for Europe at negative.

($1 = 10.2043 Swedish crowns)

Reporting by Helena Soderpalm; editing by Niklas Pollard

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