Downturn sparks Electrolux loss

Electrolux, the world's number two home appliance maker, made a loss in the first three months of 2008 as hard-up consumers bought fewer white goods.

The worse-than-expected results came as the firm warned that annual profits would be hit by the uncertain outlook.

Electrolux, whose brands include AEG and Zanussi, said it made a loss of 106m Swedish crowns (£8.9m) after a profit of 492m crowns a year earlier.

It said demand for its products in the US was much weaker than expected.

Electrolux's earnings were around 100m Swedish crowns lower than financial analysts had forecast.

"Demand for our products has been lower than we had expected and the market downturn in Europe and North America affected our results negatively," said Electrolux boss Hans Stralberg.

"As everyone knows, there is a great uncertainty about future market developments."

Its earnings were hit by restructuring and product launch costs as well as declining demand for vacuum cleaners, fridges and cookers.

Electrolux said earlier this year it would cut 400 jobs in Europe in order to save between 350m to 400m crowns a year.

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