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Dow Jones Newswires: Electrolux cuts 2022 North American market outlook to negative from neutral

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STOCKHOLM–Electrolux AB said Thursday that significant supply chain constraints hit production volumes in the second quarter and meant it was unable to fully meet demand.

Moving forward, the company
ELUX.B,
-9.64%

ELUX.A,
+2.44%

expects to now start seeing sequential improvements, but visibility is limited, it said.

The Swedish home-appliance manufacturer posted a second-quarter net profit of 257 million Swedish kronor ($25.1 million) compared with SEK1.38 billion a year earlier.

Sales rose 11% to SEK33.75 billion as price increases helped offset lower volumes.

Analysts polled by FactSet had expected net profit of SEK650 million on sales of SEK31.95 billion.

“We expect the main constraint for industry shipments to switch from the global supply chain situation in the first half of the year to a slowdown in consumer demand in the second half,” Chief Executive Jonas Samuelson said.

Electrolux cut its full-year market outlook for North America to negative from neutral and still expects the Asia-Pacific, Middle East and Africa markets to be positive this year, with Europe and Latin America still expected to be negative.

Electrolux still forecasts a hit from raw-material costs, trade tariffs, currency and labor cost inflation this year of SEK8 billion to SEK10 billion, though it expects to fully offset cost inflation with price rises in 2022.

Write to Dominic Chopping at dominic.chopping@wsj.com

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