Electrolux reports Q3 core profit beat, says North America weakness persists

Electrolux Q3 Profit Surpasses Forecasts Amidst North America Pressure

Electrolux Outperforms Expectations Despite Regional Challenges

Q3 Financial Results and Performance

GDANSK, Oct 23 (Reuters) - Swedish home appliance maker Electrolux beat expectations for third-quarter core profit on Friday helped by cost savings, but flagged that demand in its key North America region continued to weaken.

Cost Savings and Market Pressures

"Competitive pressure remained high, alongside significant cost headwinds from external factors, including raw material, logistic costs and U.S. tariffs," President and CEO Yannick Fierling said in a statement.

Adjusted Operating Income and Sales Growth

Quarterly adjusted operating income came in at 912 million Swedish crowns ($92 million), against 867 million expected by analysts in a company-compiled poll, with organic sales growing 3.5%.

Restructuring and Consumer Behavior

Electrolux, under pressure from cautious consumer behaviour, cut-price competition and rising costs, has been restructuring its business and cutting costs.

North America: Inflation and Shifting Demand

The company said that inflation worries continued to dent consumer confidence in North America, a region that accounted for 35% of group sales in the quarter.

Affordability and Pricing Trends

Fierling said customers in the region had shifted toward "lower price points", prioritizing affordability.

Sales in the region were up 2%, but mainly driven by price increases, Electrolux said.

Consumer Confidence and Margin Pressure

Consumer confidence in the United States has fallen to the lowest level since 2014, a survey showed in September, amid pressure from high interest rates, increased energy prices and costs of living.

Home appliance makers in the country also faced product discounting earlier in the year, which squeezed their margins.

Outlook for 2026

Electrolux now expects prices and volumes to have a neutral impact on its result in 2026, having previously expected a positive contribution.

Additional Information

($1 = 9.9195 Swedish crowns)

(Reporting by Boleslaw Lasocki in Gdansk, editing by Anna Pruchnicka)