Published on July 18th, 2019 | by The GC Team0
Electrolux income rises as price offsets impact from negative headwinds
Swedish manufacturer Electrolux has reported a favourable earnings impact from selling more high-margin products in the second quarter of 2019, while price increases continued to offset headwinds from higher raw material costs, trade tariffs and currency, as well as volume declines.
Operating income amounted to SEK 1,619m against SEK 827m in the same quarter last year, while income for the period increased from SEK 517m to SEK 1,132m.
Based on current trade tariff levels the company estimates the negative year-over-year impact from raw materials, trade tariffs and currency to be approximately SEK 1.4-1.6bn in 2019, compared to a previous estimate of approximately SEK 1.7-1.9bn.
“In the first half of 2019, price has fully offset this headwind and we expect that to be the case also for 2019 as a whole,” said Electrolux President and CEO Jonas Samuelson (pictured), although he added that the uncertainty on trade tariffs continues to impact visibility.
Net sales for the quarter amounted to SEK 31,687m, a decline of 2.7% driven by lower volumes.