On Monday, shares in the Swedish home-appliance maker Electrolux AB dipped in early European trading after the company warned that income would likely slide in the third quarter. Driven by the impact of high inflation on consumer durables purchases, the company adduced a slowdown in market demand for core appliances in Europe and the US.

The company has further said that the third quarter earnings are expected to decline significantly compared to the second quarter of 2022. Its North American business is seen to fall to an operating loss. The company has asserted that it would largely pursue a group-wide cost reduction program primarily at its North American and European operations. Demand in these two markets will likely remain depressed for the remainder of 2023. Also, the company has highlighted a need to eliminate production inefficiencies.

Electrolux, in a statement, stated that the measures include increasing productivity in operations and optimising the R&D portfolio, administration, sales and marketing activities. More information on its cost reduction program would be unveiled in the group’s third quarter interim report published on October 28.

Founded in 1919, the home appliance company is consistently ranked the world’s second-largest (first being Whirlpool) appliance maker by units sold. Headquartered in Stockholm, it sells products under a variety of brand names.