Electrolux Q2 Profit Declines – Quick Facts
Electrolux AB (0MDT.L,0GQ1.L,ELUXY.PK) reported that its second-quarter income declined to 517 million Swedish kronor from 1.29 billion kronor in the year-ago quarter. Earnings per share fell to 1.80 kronor from 4.49 kronor last year.
Operating income declined to 827 million kronor from 1.92 billion kronor in the prior-year period, corresponding to a margin of 2.6 percent compared to 6.2 percent last year.
Operating income for the quarter includes costs of 818 million kronor, whereof 564 million kronor relates to an investigation by the French Competition Authority and 254 million kronor to an unfavorable court ruling in France, both impacting Major Appliances EMEA.
Net sales for the quarter grew 0.7 percent to 31.35 billion Swedish kronor from 30.95 billion kronor in the prior year, mainly driven by higher prices and improved mix in the company’s core appliances.
Looking ahead, Electrolux now estimates negative year-over-year impact from raw materials to be approximately 1.8 billion kronor in 2018, and is planning for cost inflation following the recently announced trade actions under Section 301 in the U.S.
The company noted that current industry trends indicate a slightly softer market demand outlook for North America, Latin America and Australia, to a large extent driven by higher market prices caused by higher input costs.
However, Electrolux said it is confident it is well positioned to execute on its profitable growth strategy.
by RTTNews Staff Writer
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