Profits at Electrolux Slide On Weakened Demand and
Stockholm, Oct. 21--Electrolux AB posted a 38% slide in third-quarter profits amid a one-time charge and a decline in sales caused by the weaker dollar and slack demand.
The world's largest appliance maker reported net income of 767 million ($98 million or €84.2 million) Swedish krona, or 2.50 krona a share, compared with 1.24 billion krona, or 3.80 krona a share, in the year-earlier period. Excluding a one-time charge the firm earned 1.15 billion krona.
Sales fell 4.3% to 30.39 billion krona to 31.76 krona.
The company said that flat demand will lower profits for the full year.
"We expect market demand for appliances in the fourth quarter to be flat or slightly up in both Europe and North America," Electrolux said in a statement.
In addition, the weakening of the U.S. dollar and the British pound against the Swedish krona and the euro will have a negative impact on Group's income.
The appliance operations in India and China, as well as floor-care products in North America and professional indoor products, are expected to show continued weak performance, the firm said.
