ELECTROLUX AB, Europe's largest appliance maker, reported its first quarterly loss in more than two years yesterday and lowered its full-year outlook as North American consumers rein in their spending.
The net loss totaled 106 million kronor (US$18 million), or 0.38 kronor a share, compared with a profit of 492 million kronor, or 1.76 kronor, a year earlier, the company said in a statement. Sales slipped 3 percent to 24.19 billion kronor as US consumers bought fewer stoves and vacuums.
Chief Executive Officer Hans Straaberg cut his full-year forecast for Electrolux, predicting operating profit will be below last year's, after saying in February it would be "in line." Straaberg said yesterday that "in line" means a "single digit" variation, with the full-year result probably "in the lower end of that range."
The statement "was a masterpiece of cutting guidance without admitting you cut guidance," said Anders Trapp, a Stockholm-based analyst at SEB Enskilda with a "hold" rating on Electrolux. "It should be interpreted as a drop of 5 to 9 percent in EBIT without nonrecurring items."
Electrolux fell 0.8 percent to 92.75 kronor in Stockholm, while Sweden's benchmark OMX Stockholm 30 Index rose 0.8 percent. The maker of Frigidaire appliances has lost almost half its value in 12 months, giving it a market value of 28.7 billion kronor.
Analysts surveyed by Bloomberg News predicted a loss of 135 million kronor on sales of 23.89 billion kronor.