Published on January 31st, 2018 | by The GC Team0
Electrolux says “positive demand trend” expected to continue
Electrolux today reported a strong performance in the fourth quarter of 2017 with operating income up from SEK 1.62 billion in the same period last year to SEK 1.97 billion.
Net sales rose from SEK 32.14 billion to SEK 32.37 billion.
Commenting on 2017, President and CEO Jonas Samuelson said all business areas delivered strong performance improvements.
EMEA continued its profitability trend and delivered a margin of 7.2%; North America reached a record margin of 6.8%; Asia Pacific delivered a margin of 7.5%, while “a solid turnaround” was seen in Latin America.
Samuelson said the overall positive demand trend across most markets in 2017 is expected to continue in 2018. “We anticipate market demand for appliances in Europe to grow by 1-2% and in North America by 2-3% in 2018. In Latin America we expect market recovery to continue in 2018 with a growth rate of 3-5%.”
The company, however, warned of a negative impact from raw material costs in 2018, forecasting this to be approximately SEK 1.2 billion.
“We will continue our efficiency measures to offset this headwind and also implement previously announced price increases,” said Samuelson.