Electrolux Pro slumps to loss amid pandemic, to cut more costs (updated)

Electrolux Professional AB (publ)

24/07/2020 07:55

* Swings to Q2 loss of 18 mln SEK
    * To launches new cost savings in H2
    * Sees signs of recovery in June-July

 (Adds detail, background)
    STOCKHOLM, July 24 (Reuters) - Electrolux Professional
 EPROb.ST  reported a loss for the second quarter on Friday, hit
by a deep slump caused by the novel coronavirus pandemic that
has hit key customer groups such as hotels and restaurants
especially hard.
    The commercial kitchen and laundry equipment maker said in a
statement it would carry out additional cost cuts during the
second half the year, aiming for total annual savings of 100-150
million Swedish crowns.
    Electrolux Pro was hit hard early in the quarter as the
novel coronavirus spread across Europe, but it said sales had
recovered somewhat in June. On a like-for-like basis, sales fell
20% in June after a decline of 50% in April and May.
    "Sales in the beginning of July are in line with the
percentage decline registered in June. We interpret this as a
sign of recovery," CEO Alberto Zanata said.
    Making its stock market debut at the most challenging of
times in March, with equity prices plumbing the depths due to
the raging pandemic, Electrolux Pro shares have doubled in value
in recent months.  
    The impact of the pandemic and the widespread lockdowns to
contain it has severely hit the hospitality industry, including
hotels and restaurants, which accounts for about half of
Electrolux Pro's group sales.
    The company ran a second-quarter operating loss of 18
million Swedish crowns ($2.0 million) versus a 401 million
profit a year ago.
    Sales at the company, which was listed after being spun off
from home appliance maker Electrolux  ELUXb.ST , fell to 1.49
billion crowns from 2.46 billion in the year-earlier quarter,
down 39.9% on a like-for-like basis.

($1 = 8.8600 Swedish crowns)

 (Reporting by Helena Soderpalm; editing by Niklas Pollard)
 ((helena.soderpalm@thomsonreuters.com; +46 8 700 10 15; Reuters
Messaging: helena.soderpalm.reuters.com@reuters.net))