Swedish duo flag lingering supply-chain freeze

  • 7/20/2021
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LONDON, July 20 (Reuters Breakingviews) - Swedish industrial duo Volvo (VOLVb.ST) and Electrolux (ELUXb.ST) are a microcosm for the state of the global economy. Both groups face soaring demand for their products, which respectively include trucks and fridges, but they’re struggling to capitalise on it. Volvo’s second-quarter results on Tuesday showed that sales were 2% higher than analysts’ expectations, based on a Reuters poll, but operating profit was 1% lower read more . Electrolux’s revenue came in almost 5% above consensus forecasts but operating profit was 6% lower. Both companies blamed supply-chain problems, such as shortages of semiconductors and rising raw material costs. Investors are betting that it’s more than a blip. They wiped 3% off Volvo’s value, taking it down to 396 billion Swedish crowns ($45.6 billion), and 10% off 62 billion Swedish crown Electrolux. Volvo Chief Executive Martin Lundstedt expects “further disruptions and stoppages” in the second half of the year. The global trend of strong demand and short supply, which is pushing up inflation, may yet have legs read more . (By Liam Proud) On Twitter http://twitter.com/breakingviews Capital Calls - More concise insights on global finance: It’s harder to extract China insight from BHP read more Tencent places heavyweight bet on UK’s Sumo read more China hack backs White House into a corner read more Ocado’s robot fire may cause lingering damage read more Oil producers do themselves a favour read more

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