Home appliance manufacturer Electrolux raised its 2016 outlook on European demand Wednesday, helped by strong growth seen in the region during its second quarter.
However, the U.K.'s vote to leave the European Union last month has pushed companies to find fixes for an eventual Brexit, with the Swedish firm highlighting concerns over the U.K.'s demand and its currency going forward.
"We're of course exposed to the British pound and of course we have to take actions to counter the weakness of the pound, and we're looking at doing that," Jonas Samuelson, chief executive at Electrolux, told CNBC Wednesday.
"In terms of demand, we have seen some concerns from the construction sector with some signs that they are pulling back a little bit. However overall, our business in the U.K. is still developing very well, so we're not overly concerned. There are some uncertainties and some negative developments there."
While the British pound has shown some signs of stabilizing after falling to a 31-year low just days after the Brexit vote, Electrolux's CEO said it was very hard to tell whether the pound would drop even lower. With this uncertainty in mind, Samuelson added that the company was now safeguarding itself against exposure to the British currency.
Changes in exchange rates overall continued to have a negative impact on the company's operating income during the quarter, however the CEO remained optimistic, saying he expected current rates to have more of a "neutral effect" during the second half of 2016.