Stockholm  - Swedish home appliance maker Electrolux on Wednesday reported a pre-tax loss for fourth-quarter 2008 and expected 2009 to be "tough."

The group posted a pre-tax loss of 572 million kronor (68 million dollars), compared to a pre-tax profit of 1.9 billion kronor in the corresponding business period 2007.

Net sales were up 3.7 per cent to 28.6 billion kronor, the group said.

For full-year 2008, operating income fell 73 per cent to 1.5 billion kronor. Sales were flat at 104 billion kronor.

"In 2008, we experienced a drop in demand, which accelerated at the end of the year. Unfortunately, we see no market improvement in the short term," chief executive Hans Straberg said in a statement.

Straberg attributed the decline in operating income to factors including costs for reducing staff - the group shed some 4,000 employees in 2008, weaker volumes and price, higher raw material costs and the launch of its products in the premium sector in the US.

The group said it would not offer any estimate of operating income for 2009.

Elecrolux has introduced a wage freeze for 2009, and the board said it recommended not to pay a dividend to shareholders for 2008.

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 some 54,000 employees at the end of December 2008. (dpa)