Electrolux said today it expects consumer sentiment to stay weak in early 2024 after which it sees demand in major markets stabilising through the year, as it reported quarterly losses in line with a preliminary reading.
The Swedish group on January 12 warned its fourth-quarter loss had widened to around 3.2 billion Swedish crowns from a year-earlier 2 billion due to high costs, intensified price competition and weak demand in North America.
The world's second-biggest appliances maker said today it expects demand for core appliances in 2024 to be relatively neutral for all regions compared to 2023.
"Looking into the beginning of 2024, weak consumer sentiment is anticipated to continue with consumers shifting to lower price points and postponing purchases in discretionary categories," CEO Jonas Samuelsson said.
"However, as inflationary pressure is subsiding and interest rates are expected to come down, we expect demand in major markets to stabilise in the course of the year," he added.
Electrolux, which prices its products in many regions at the premium end of the market, proposed no dividend for a second year in a row, as expected.
The company, which produces products such as fridges, reported an operating loss of 3.22 billion Swedish crowns ($310.33 million) against a year-earlier loss of 1.96 billion and a preliminary reading of 3.2 billion.
Excluding non-recurring items, it posted an operating loss of 724 million versus a loss of 612 million a year ago.
