Electrolux Pro sees steep sales drop as pandemic hits (updated)

Electrolux Professional AB (publ)

06/05/2020 08:05

(Adds background, detail, CEO comment)
    STOCKHOLM, May 6 (Reuters) - Commercial kitchen and laundry
equipment maker Electrolux Professional  EPROb.ST  reported a
steep drop in quarterly sales and profits on Wednesday, due to
the impact of the coronavirus on demand from hotels and
restaurants.
    A big hit to earnings from the virus had been flagged by the
company, which has its operational headquarters and two of its
twelve manufacturing plants in Italy, one of the countries
hardest hit by the pandemic.    
    The company, which was listed in March after being spun off
from home appliance maker Electrolux  ELUXb.ST , said
first-quarter sales fell 13.7% organically to 2.09 billion
Swedish crowns, but added it had seen a 25% drop in March.
    "The general market uncertainty is significant," CEO Alberto
Zanata said in a statement, adding the company's short-term
focus was on mitigating the sharp decline in demand, with
cost-cutting implemented and investments re-evaluated.
    The pandemic and the widespread lockdown of countries has
severely hit the hospitality industry, including hotels and
restaurants, which accounts for about half of Electrolux Pro's
group sales.
    The company said that sales to institutions as well as in
the laundry business had held up better.
    It said that all its factories were currently operational,
albeit with reduced production.    
    First-quarter operating profit dropped to 205 million crowns
 ($20.88  million) from 301 million a year earlier. 

($1 = 9.8175 Swedish crowns)

 (Reporting by Johannes Hellstrom, editing by Helena Soderpalm
and Louise Heavens)
 ((johannes.hellstrom@thomsonreuters.com; +46850242388; Reuters
Messaging: johannes.hellstrom.reuters.com@reuters.net))