July 24, 2013 / 1:26 PM / in 4 years

Indesit losses double, sees falling 2013 sales

MILAN, July 24 (Reuters) - Italy’s Indesit said on Wednesday its net loss doubled in the second quarter and it forecast a 3 to 4 percent drop in revenue this year as demand for its refrigerators and stoves fails to improve.

Indesit said at the start of June that the weak economy was forcing it to cut one third of its workforce in Italy and shift some Italian operations to emerging markets.

The plan has caused strikes and protests - the appliances sector is Italy’s second-largest employer - and the company is in talks with the government and trade unions.

Indesit reported sales of 646.5 million euros ($855 million) in the second quarter, down 5.6 percent from a year earlier.

It posted a loss of 21 million euros, double the figure recorded in the second quarter of 2012.

The company said it expected net financial debt to grow in 2013. Net financial debt was 520 million as of June 30.

“For the rest of 2013 we expect demand to remain weak and we reiterate the company’s commitment to safeguard the group’s profitability,” said Indesit CEO Marco Milani in a statement, vowing to continue with the plan to cut staff.

The plan entails moving to Poland and Turkey the production of goods now manufactured in Italy that are exported to Eastern Europe. ($1 = 0.7565 euros) (Reporting by Francesca Landini and Elisa Anzolin; editing by Tom Pfeiffer)

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