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Electrolux warns on profit as consumers cut buys

STORY: Electrolux is the latest firm to warn of consumer pain over inflation.

The Swedish home appliances giant warned Monday (September 12) that profits could fall short.

It will also have to cut costs over the coming months.

Electrolux, which also owns brands like AEG, says demand for washing machines and the like is falling fast in Europe and North America.

That’s leaving retailers stuck with mounting inventories.

Europe’s biggest maker of appliances says cost cuts will start to pay off next year.

The cutbacks will start immediately, with details to come next month.

Electrolux has invested heavily in its North American plants, but seen the health crisis and other factors limit benefits to production.

In Europe, the company expects consumers to keep putting off purchases.

Its shares fell as much as 7% following the warning, before recovering.

They’re down over 40% so far this year.