Sweden’s Electrolux reported second-quarter earnings that fell short of estimates due to supply chain problems and losses at North American operations.
Europe’s largest home appliance company said it expected these supply chain restrictions to ease in the second half of the year but warned that risks of disruption due to the coronavirus and the war in Ukraine would continue.
Electrolux shares, down 30% since the start of the year, are down 9.6% and on track for their worst session since March 2020.
Second-quarter operating profit came in at 560 million kroner ($54.9 million), down from 1.98 billion kroner a year ago, and well short of the 981 million expected by analysts.
It’s really disappointing that the North American business posted a loss in the quarter, the chief executive said, adding that production and efficiency challenges due to supply disruptions and labor shortages significantly hurt earnings.
The US operations posted a loss of 270 million kroner versus a profit of 558 million kroner a year ago.
The home appliance company downgraded its outlook for North America to negative from neutral, and maintained negative estimates for Europe.
Source: Capital
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