Electrolux has released its preliminary statement outlining its decline; its operating income, excluding non-recurring items, in the fourth quarter of 2023 is estimated to be SEK -0.7 billion (£52.8 million).
The manufacturer reports that its underlying loss in its North American business is estimated to be approximately SEK -1.4billion (£105.6 billion), driven by intensified price pressure, lower volumes and elevated cost levels.
Net sales in the fourth quarter for the Group is estimated to be approx. SEK 35.6bn (£2.6 billion), an organic decline of about 1 per cent. Operating income for the Group is estimated to approx. SEK -3.2bn (£241 million) (-2.0) and includes non-recurring items of approximately SEK -2.5bn (£188.6 million) (-1.4).
Cash flow generation was strong in the quarter, expected to lead to an operating cash flow after investments for the full year 2023 of approximately SEK 3 billion (£226 million) (-6.1). 
It said the main driver behind the loss in North America was the weak demand during Black Friday, as well as the remainder of the year.
ERT reported last year about Electrolux’s increased Group cost cutting measures, read more about it here.
Cost discrepancy between its production located in North America compared to certain parts of Asia has resulted in lower market price levels, particularly in refrigeration – which it said is a key category for the business in the region.
Electrolux also stated that its Group-wide cost reduction and North America turnaround program progressed well in the quarter. However, the temporary impacts from its Springfield factory closure did result in some cost savings but it still failed to hit its cost reduction target SEK 6 billion (£452 million).
*All figures are preliminary and unaudited, and the final report for the fourth quarter of 2023 will be published on February 2.
