By Dominic Chopping
STOCKHOLM–Electrolux on Thursday swung to an unexpected second-quarter net loss and said it is considering selling its Zanussi brand and other non-core assets during the coming years that together could raise around 10 billion Swedish kronor ($973.3 million).
The Swedish home-appliance manufacturer posted a second-quarter net loss of SEK648 million from a profit of SEK257 million as earnings were weighed by SEK643 million provision, significantly lower volumes due to weaker market demand, currency headwinds, labor cost and energy inflation.
A FactSet analyst poll had expected a net profit of SEK350 million.
Sales fell 3.2% to SEK32.65 billion, versus the SEK34.05 billion expected in a company-compiled consensus.
The weak demand environment, with lower consumer purchasing power resulting in more consumers shifting to lower price points, continued in the second quarter, it said.
Although price increases contributed somewhat positively in the quarter, earnings promotions also increased significantly and Electrolux now expects the net price effect to turn negative from the third quarter.
“In the challenging times we are now experiencing, it is vital to continue with strategic portfolio management,” Chief Executive Jonas Samuelson said.
“Further structural simplification and complexity reduction are thus being evaluated.”
Demand in 2023 is now expected to be negative in all regions.
Write to Dominic Chopping at dominic.chopping@wsj.com