Electrolux reports tripled operating loss in Q1 amidst weak demand

Electrolux Q1 loss: Electrolux, the world's second-largest appliance manufacturer, faced a significant increase in operating loss during the first quarter, nearly tripling compared to the same period last year. The loss was attributed to subdued demand and underperformance in North America, though it was smaller than analysts had anticipated, thanks to a moderation in raw material costs.

The Swedish conglomerate disclosed an operating loss of 720 million crowns ($66.2 million), contrasting with a loss of 256 million crowns in the prior year. Analysts polled by LSEG had expected a loss of 761 million crowns on average.

In response to the news, Electrolux shares surged over 6 per cent in early trading.

CEO Jonas Samuelson acknowledged the challenging market conditions, stating, "Although consumer confidence indicators seem to have bottomed out, this is, with the exception of Latin America, not yet visible in demand on our main markets."

He further highlighted persistent price pressure in North America and heightened promotional activity in other regions throughout the first quarter.

Electrolux maintained a "neutral" full-year market outlook for Europe, Asia-Pacific, and North America. The company's premium product portfolio has encountered fierce competition from lower-priced rivals, such as China's Midea, as households seek more affordable options.

In a separate announcement on Thursday, Electrolux revealed that CEO Jonas Samuelson, who has held the position for eight years, will step down on January 1 next year. The board has initiated a search for his successor.

(with Reuters inputs)