US economy

Electrolux profit falls as supply-chain headwinds linger

© Reuters. FILE PHOTO: The Electrolux logo is seen during the IFA Electronics show in Berlin, Germany September 4, 2014. REUTERS/Hannibal Hanschke/File Photo

STOCKHOLM (Reuters) -Sweden’s Electrolux said on Friday it expected demand this year to be above pre-pandemic levels, but that global supply chain issues would linger, after it posted a drop in fourth-quarter profits.

Households have been spending more on their homes, including on appliances, during the pandemic. But global logistics constraints and shortages of electronic components have hit Electrolux’ production.

Europe’s biggest home appliances maker said the issues would continue to impact the industry’s ability to fully meet demand.

“We estimate that the first quarter will be at least as challenging as the fourth quarter 2021,” it said in a statement, adding it expected sequential improvements from mid-2022.

Electrolux, a rival to Whirlpool, had previously warned that global supply chain constraints would be challenging in the fourth quarter and into this year.

Operating profit fell to 882 million Swedish crowns ($94.1 million) from a year-ago 2.50 billion, including costs of 727 million relating to arbitration in a U.S. tariff case.

It proposed a dividend of 9.20 crowns per share, up from 8.00 crowns the previous year.

($1 = 9.3736 Swedish crowns)

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