Electrolux blames World Cup for sales dip

Electrolux blames World Cup for sales dip
File photo: Fredrik Persson/TT
Swedish home appliance maker Electrolux reported a loss in the second quarter 2014 citing weaker demand during the World Cup and weaker sales in Asia, Australia and Latin American markets.

Losses in the second quarter amounted 92 million kronor ($13.5 million) compared with a 642-million-kronor profit a year earlier.

In the last quarter of 2013, the company posted its first losses since 2009.

The group said sales were down in several regions, especially in Asia, Australia and most Latin American markets, while Europe and North America experienced modest increases of one and six percent respectively.

"The economic slowdown and the FIFA World Cup had an adverse impact on demand for appliances in the second quarter," Electrolux said in a statement, while stressing that company had a "good performance" in the region despite a "weak market".

Revenue in the second quarter fell by five percent to 26.330 billion kronor, falling short of the 28.48-million-kronor figures expected by analysts polled by Dow Jones Newswires.

Last October, Electrolux announced 2,000 job cuts, with a factory closure in Australia and staff cuts in Europe.

Chief executive Keith McLoughlin said that there had been "a positive impact from the ongoing cost-reduction program in Europe", where the company expects demand to fall between one and three percent in 2014.

"We will continue to launch new, innovative products in parallel with optimising global production with a strong focus on cost efficiency," McLoughlin said.

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