Electrolux shares soar after smaller loss
STORY: Shares in Electrolux, Europe's leading home appliances maker, surged 16% on Friday (April 28).
The Swedish company reported a smaller than expected operating loss for the first quarter
which boosted hopes of a turnaround in North America.
Electrolux, which also owns brands including Frigidaire and AEG, said it made an operating loss of almost $25 million.
While this was down sharply from a profit a year earlier, it beat forecasts for a loss of $55 million.
Against a backdrop of soaring inflation, demand for appliances has faltered recently.
Simultaneously, Electrolux has been struggling with production bottlenecks and rising costs.
Cost hikes have prevented production from ramping up in North America, and the company has struggled to make this division profitable.
However, analysts said that the reduction in loss in North America was “encouraging”.
While the Asia-Pacific, Middle East and Africa region was the only one that did not perform better than expected.