Electrolux, Europe's biggest home appliances maker, said on Friday weaker demand had resulted in lower sales volumes as it slumped to an operating loss in a first quarter that was marred by restructuring charges.

Electrolux, which sells appliances under brands such as Frigidaire as well as its own name, reported an operating loss of 256 million Swedish crowns ($24.85 million) in the quarter, down from a year-ago profit of 1.58 billion.

Results were dented by one-off charges of 561 million crowns relating to the discontinuation of production at a plant in Hungary.

Against a backdrop of soaring inflation, demand for appliances has faltered recently, adding more headaches for Electrolux which has struggled with production bottlenecks and rising costs in recent quarters.

"Our solid price execution continued, while volumes declined as a result of the weaker market demand compared to last year," CEO Jonas Samuelson said in a statement. "Lower consumer purchasing power also resulted in pressure on sales mix."

Electrolux maintained all of its previous guidance, which included a forecast for negative full-year demand for all of its markets except in the Asia-Pacific, Middle East and Africa region, which was seen roughly flat.

"Consumer demand was negatively impacted by high general inflation, increased interest rates and geopolitical tensions. Reduced purchasing power led to increased polarization with more consumers shifting to lower price points," the company said.

While Electrolux has struggled for years to boost profitability in its North America division, one of its largest competitors, Whirlpool, unveiled results this week that were boosted by high demand for its products in the region.

 

(Reporting by Marie Mannes; editing by Niklas Pollard)