Now chip shortage hits fridges, washing machines

Car makers have taken the headlines, but it seems parts shortages are hurting household goods makers too.

On Friday (January 28) Electrolux said supply chain problems meant it couldn't meet demand.

The Swedish firm is Europe's biggest maker of fridges, washing machines and the like.

It owns numerous other brands including AEG and Frigidaire.

In the fourth quarter its profit tumbled to about $94 million - around a third of last year's level.

Now Electrolux says supply chain problem will continue to hamper its ability to meet demand.

It also faces a battle against rising costs for raw materials, components and logistics.

Overall it said the first quarter would be every bit as tough as the fourth.

However, the firm thinks prices rises can offset at least some of its soaring costs.

And it expects demand to exceed pre-crisis levels.

Shares in the firm were down around 4% in afternoon trade.