(News Bulletin 247) – Electrolux announced on Thursday that it suffered a loss in the second quarter, marked by weak demand, and announced a vast asset disposal plan that did not seem to completely reassure the market.
Around 10 a.m., the ‘B’ action of the Swedish appliance manufacturer dropped 15%, signing the second largest drop in the OMXS30 index on the Stockholm Stock Exchange, behind the media group Viaplay Group, also penalized by its results.
At current levels, the stock is only up 9% this year, compared with a 9.4% gain for the Nasdaq OMX Stockholm All-Share index.
The group reported this morning an operating loss of 124 million Swedish crowns for the past quarter, compared with an operating profit of 560 million over the same period of 2022.
Its net turnover fell to 32.65 billion crowns, against 33.75 billion a year earlier, giving a negative organic growth of 8.4%.
In its press release, Electrolux explains that it suffered from sluggish consumption, characterized by a transfer of customers to entry-level products.
Under these conditions, the company has decided to implement a program of non-strategic asset disposals, which could bring in some 10 billion crowns over the next few years.
This plan provides in particular for the sale of the Zanussi brand, but also other brands deemed secondary such as Faure or Ideal.
The project also includes the sale of production sites based in Egypt, mainly focused on the Zanussi brand, as well as other factories manufacturing water heaters in Egypt and South Africa.
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