By Nina Kienle
Shares in Electrolux fell sharply after the company said it swung to a net loss in the first quarter and launched a 9 billion Swedish kronor ($971.5 million) rights issue as North American sales take a hit.
The home-appliance manufacturer on Friday booked a net loss of 470 million Swedish kronor over the quarter, while revenue fell to 29.54 billion kronor from 32.58 billion kronor in the prior-year period. The company said it is facing a challenging U.S. pricing environment due to costs related to trade tariffs.
The figures were notably more negative than analysts' forecasts of quarterly net profit at 138.2 million kronor and revenue at 30.64 billion kronor, according to Visible Alpha estimates.
In European morning trade, shares fell 23% at 46.63 kronor to a 17-year low. Shares trade 27% lower over the year to date.
While Electrolux strengthened its market position in Europe and Brazil, North America saw organic sales decline 12%, reflecting weaker market conditions, in addition to increased tariff costs and a significant slowdown in market demand, it said.
Late Thursday Electrolux said that it had entered into agreements with China's Midea Group to support performance in North America, aiming to strengthen the group's product offering in food preservation and fabric care.
The Swedish manufacturer meanwhile said it would launch a 9 billion kronor rights issue, inviting shareholders to buy new shares at a discount. Proceeds will be used to partly fund the joint venture with Midea and carry out other restructuring measures across operations.
Electrolux has been grappling with subdued consumer demand and competition from lower-priced rivals, and is implementing cost-efficiency measures. The company is on track to reach its cost efficiency outlook of 3.5 billion to 4.0 billion kronor, it said.
Both the weak quarterly results and the rights issue are likely to weigh on the stock, SB1 Markets analysts said in a note.
"But the strategic measures in North America and the potential for a structural deal support a positive view in the medium term," they said.
The company backed its overall view for 2026 despite expected additional costs related to extended U.S. import tariffs on products that contain steel and aluminum.
Write to Nina Kienle at nina.kienle@wsj.com
(END) Dow Jones Newswires
April 24, 2026 04:42 ET (08:42 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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