Helena Soderpalm

STOCKHOLM (Reuters] -Electrolux announced Friday that global supply chains issues will persist, despite posting a decline in quarterly profit. They also expect demand to be higher in 2022 than in pre-pandemic years.

During the pandemic, households have spent more money on their houses, and even on their appliances. Electrolux was hit hard by shortages and global logistics.

Electrolux warned that these issues will continue to affect the industry’s ability meet demand. It also predicted strong inflation in prices in 2022. The main culprits are raw materials and electronic components, as well as logistics.

According to the Swedish firm, “We believe that the first three quarters will prove at least as hard as the fourth quarter in 2021”, and added that they expect improvements starting mid-2022.

The shares of Europe’s largest home appliance maker fell by 14% through Thursday. Early trade saw a 5.4% drop in shares.

Kepler-Cheauux claimed that Whirlpool (NYSE) had already reported the “reasonably great” results earlier this week.

Analyst Johan Eliason stated that the share was reacting to the Q1 weak guidance and guidance regarding the significant cost inflation in 2022E, which is well beyond Whirlpool’s guidance.

Electrolux previously stated that there would be challenges in global supply chains during the fourth quarter as well as into next year.

From 2.50 Billion a year earlier, the fourth-quarter operating profit dropped to 882 Million Swedish Crowns ($94.1M). This does not include costs of 727 M for arbitrating in a U.S. tarif case.

Electrolux proposes a dividend at 9.20 crowns each share, an increase from the 8.00 crowns last year. They also announce a share buyback program of 2.5 billion crowns.

($1 = 9.3736 Swedish Crowns