Published on October 27th, 2017 | by The GC Team0
Electrolux reports third-quarter earnings improvement
Electrolux has reported net sales of SEK 29,309m (£2,668.5m) for the third quarter of 2017, down from SEK 30,852m in the same period last year.
Operating income increased to SEK 1,960m, up from SEK 1,826m, corresponding to a margin of 6.7%, against 5.9% in Q3 2016.
Income for the period also increased, rising from SEK 1,267m to SEK 1,424m.
Electrolux President and CEO Jonas Samuelson said the favourable earnings trend was supported by product mix improvements and accelerated cost efficiency despite organic sales decline, mainly related to North America. Organic sales fell 3.2%.
Profitability increased across the company’s business areas, with four of these reaching an operating margin above 7%.
Commenting on the EMEA market, Samuelson said “the positive product mix development continued and our premium brands gained market share. Operating income improved and the margin increased to 7.9% in the quarter with strong cost efficiency work offsetting the increased raw material costs and currency headwinds.
“The European appliance market remains solid, with demand growth in several markets in Western and Eastern Europe, while the UK and the Middle East and Africa continue to be weak. We expect the total European market to be positive and reconfirm our outlook of around 1% growth in 2017.”