Electrolux in a spin as demand falls

HOME appliances giant Electrolux yesterday warned that falling demand in the US and Europe combined with rising raw materials costs would hurt its second-half profits.

The firm posted worse-than-expected second-quarter results alongside its gloomy forecast forcing its shares to drop by almost 15 per cent in Sweden.

That followed a surprise loss for electronics leader Philips on Monday and set a grim prognosis for larger rival Whirlpool, the appliances world number one, which is due to report later this week.