Electrolux says its net profit fell by 50 percent in the first quarter amid unfavorable currency exchange rates, price pressure and increased raw-material costs.
The company, based in Stockholm, said on Wednesday that net profit for the period dropped to 457 million kronor ($75 million) from 911 million kronor a year earlier.
Revenue for the quarter fell by 6.7 percent to 23.4 billion kronor, from 25.1 billion in the corresponding period last year.
The company said revenues were strong in Latin America, Asia and the Pacific and for its small appliances.
In North America, increased raw-material costs and continued pressure on prices weighed on results, but Electrolux said it plans to increase prices there in the second quarter.
McLoughlin, an American who took over at the start of the year, predicted raw material costs will increase by about 2 billion kronor this year. Electrolux aims to shift to a growth phase after years of focusing on cost cuts by moving production to lower-cost countries under former CEO Hans Straaberg.
Electrolux last month resumed negotiations to buy Egyptian appliance maker Olympic Group Financial Investments. (OLGR) The Swedish manufacturer in February had suspended a plan to buy Olympic because of political unrest in Egypt.
In one of his first actions, McLoughlin in January sent a letter to U.S. customers informing them that Electrolux will raise prices. The price increases aim to counter growing costs for steel, resins and base metals.