Stockholm - Swedish home appliance maker Electrolux on Thursday reported a strong drop in second-quarter results 2008, citing weaker sales in North America and Western Europe. The group posted a pre-tax profit of 140 million kronor (23 million dollars), down some 80 per cent from a pre-tax profit of 752 million kronor for the corresponding business period 2007.
Net sales were 25.58 billion kronor, down 0.8 per cent, with the figure partly affected by exchange rates.
Chief Executive Hans Straberg said he was satisfied with the group's performance in its professional products division as well as sales in Latin America and Asia/Pacific.
Electrolux continued its launch in the premium sector in the US which cost 230 million kronor in the second quarter, Straberg said.
Citing "very weak market developments" in North America and Europe as well as costs for product launches and an ongoing cost-reduction programme, Straberg said that Electrolux had lowered its outlook for the full-year.
The group expected an operating income of 3.3 to 3.9 billion kronor excluding items affecting comparability, he said.
In recent years, the group has moved production from plants in countries like Germany, Britain and Sweden to Poland, and from the US to Mexico. During the second quarter the group announced plans to concentrate its production of refrigerators in Italy to one plant.
Electrolux had 55,212 employees at the end of June.
