Swedish home appliance manufacturer Electrolux is set to recover from a significant loss in Q3 of the previous year, with an expected net profit of SEK 450 million ($40.4 million) for Q3 2023. This comes after a SEK 605 million loss in Q3 2022, primarily due to a SEK 1.2 billion loss in its North American business and a SEK 350 million charge related to its exit from the Russian market.
Despite the projected recovery, Electrolux has forecasted a drop in sales to SEK 34.1 billion from SEK 35.24 billion in the same period last year. The company continues to grapple with cost inflation, which is being fueled by increased labor and energy expenses, trade tariffs, currency fluctuations, and rising raw material costs.
In Q2 2023, Electrolux managed to offset these costs through price increases. However, the company predicts a negative net price effect starting from Q3. This indicates that the price hikes may not be sufficient to counterbalance the escalating costs moving forward.
The upcoming financial performance of Electrolux will provide further insight into how the company navigates these challenges while striving for profitability in a volatile economic environment.
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