Stockholm - Weak sales in North America and Western Europe impacted first-quarter profits 2008, Swedish home appliance maker Electrolux said Monday.

The group posted a pre-tax loss of 149 million kronor (25 million dollars), compared to a pre-tax profit of 670 million kronor for the corresponding business period 2007.

Net sales dropped 3 per cent to 24.19 billion kronor. The group said unfavourable exchange rates were a factor.

"The result was decreased by a number of significant non-recurring costs, the purpose of which is to strengthen our long-term operations," Chief Executive Hans Straberg said in a statement.

The measures included the earlier announced one-time cost of slashing some 400 jobs, estimated at some 400 million kronor. The move was due to offer annual savings of 350-400 million kronor with the first effect to be noticed at the end of the year, he said.

Another one-time cost of 550 million kronor was linked to the marketing of products aimed at the premium sector in the US.

Straberg said there was "great uncertainty" about the market and noted that demand has been "lower than we had expected."

Operating income for 2008 was expected "to be in-line with 2007" with demand in Europe revised to be flat.

In recent years, the group has moved production from plants in countries like Germany, Britain and Sweden to Poland, and from the US to Mexico.

Electrolux had 55,783 employees at the end of March. (dpa)