By Dominic Chopping
STOCKHOLM–Electrolux AB said Friday that global supply-chain constraints have significantly hurt its production and sales volumes, with the situation remaining just as challenging in the second quarter.
The Swedish home-appliance manufacturer posted a first-quarter net profit of 950 million Swedish kronor ($96.5 million) compared with SEK1.56 billion a year earlier as sales rose 3.8% to SEK30.12 billion. Earnings in the quarter were weighed by a SEK656 million US tariff charge, it said.
Analysts polled by FactSet had expected net profit of SEK714 million on sales of SEK30.59 billion.
Electrolux cut its full-year market outlook for Europe to negative from neutral, mainly due to lower consumer confidence, and cut the North American market outlook to neutral from positive due to supply constraints.
The company said it still expects the Asia-Pacific, Middle East and Africa markets to be positive this year, while Latin America is still expected to be negative.
Electrolux now forecasts a hit from raw-material costs, trade tariffs, currency and labor cost inflation this year of SEK8 billion to SEK10 billion from SEK6 billion to SEK9 billion, though it expects to fully offset cost inflation with price rises in 2022.
Write to Dominic Chopping at [email protected]j.com
Credit: www.marketwatch.com /