STOCKHOLM, Oct 25 (Reuters) - Home appliances maker Electrolux announced on Friday a cost reduction programme in response to challenging market conditions in Europe as its third-quarter core operating profit missed analyst forecasts.
“Our European operations continued to be affected by challenging market conditions, especially in Southern Europe, having a negative impact on volumes and earnings,” Chief Executive Keith McLoughlin said in a statement.
“In response to the current market situation in Europe, we have initiated a new overhead reduction program to adapt the group’s cost structure. We expect the European demand for appliances to decline by 1-2 percent for the full year of 2013.”
The Swedish appliances maker, second only to U.S. rival Whirlpool in size, reported core operating earnings, stripping out one-off items, of 1.08 billion crowns ($170 million). That was down from the comparable 1.42 billion in the same period of 2012 and below with an average forecast for 1.30 billion in a Reuters poll. ($1 = 6.3631 Swedish crowns)