STOCKHOLM (Reuters) – Swedish home appliance maker Electrolux on Thursday said it expected to make a significant second-quarter loss citing headwinds from the COVID-19 pandemic and a 30% sales drop in April, but said revenues should slowly recover going forward.
The maker of brands such as Frigidaire and Anova had warned in March that lock downs in several large markets due to the pandemic had caused a sharp decrease in demand and had hit production.
Electrolux said on Thursday it had seen a large hit to sales towards the end of the first quarter and a steep drop in April, but added it expected sales to gradually recover.
“For the second quarter in 2020 we expect a significant loss,” CEO Jonas Samuelson said in a statement.
“We have implemented comprehensive actions to mitigate the impact on earnings and cash flow from this exceptional market situation.”
The rival of U.S. Whirlpool, however, reported first-quarter operating earnings above market expectations.
The company posted a 122 million crowns ($12.42 million) operating profit, up from a 53 million loss in the year-ago quarter, which was marred by large one-off costs, and above the 19 million profit seen in a Refinitiv analyst poll.
($1 = 9.8220 Swedish crowns)
(Reporting by Johannes Hellstrom; editing by Simon Johnson)