Swedish appliance giant Electrolux has reported an 82 per cent drop in net profit and cut its full-year forecast, citing very weak markets in North America and Europe.
The company said net profit for the second quarter fell to US$16.5 million from US$$91 million in the same period a year ago, mainly due to the costly launch of a new premium appliance line in North America, according to The Chicago Tribune.
It said the introduction of the new Elextrolux brand reduced operating income for the second quarter by about $US38.4 million.
Electrolux also cut its outlook for the full year, saying it expects an operating profit of between $US 551 million-$US651 million, according to the report.
The report notes that the company previously expected profits to stay about the 2007 level, when it had operating earnings of $US752 million.