Electrolux slashes payout

ELECTROLUX, the Swedish electrical appliance group, halved its 1992 final dividend to Skr6.25 (58p) because of uncertainty over future earnings, writes Mary Fagan.

The European market in almost all Electrolux product sectors weakened during last year. This was offset only partially by increased demand in North America for domestic and other consumer appliances.

The company said: 'The market situation for 1993 is difficult to evaluate and it is therefore uncertain when the previous levels of earnings can be achieved again.'

The group's operating profit in 1992 fell by 13 per cent to Skr2.25bn ( pounds 210m) from Skr2.59bn ( pounds 242m) a year earlier. Pre-tax profits remained stable at around Skr1bn after exchange gains and financial items including restructuring charges.

In Europe, the market downturn was sharpest in the Nordic countries and in Spain. Britain remained among the weakest regions, with no sign of an upturn.

The announcement of the dividend cut coincided with the launch by Electrolux of its ozone- friendly refrigerators and freezers. The products use a chemical known as R134a for the cooling and insulation systems.