Electrolux Q4 Profit Surges, Raises Dividend; Sees Demand Growth Ahead – Quick Facts
Swedish home appliances giant Electrolux AB (0MDT.L,0GQ1.L,ELUXY.PK) reported Tuesday that its fourth-quarter income surged to 1.86 billion Swedish kronor from last year’s 366 million kronor.
Earnings per share were 6.47 kronor, up from 1.27 kronor a year ago.
Operating income amounted to 2.50 billion kronor, up 160 percent. Operating margin improved to 7.4% from 3 percent last year, driven by higher prices and innovative high-margin products.
The company recorded strong sales and earnings across all business areas.
Net sales amounted to 33.90 billion kronor, up 6 percent from 32.01 billion kronor a year ago. Organic sales increased by 17.5%, benefiting from continued high levels of home-improvement spending as well as positive mix and price development.
Further, the Board proposed a dividend for 2020 of 8 kronor per share, higher than last year’s 7 kronor per share, to be paid in two equal installments.
Looking ahead to fiscal 2021, visibility remains limited due to the ongoing pandemic.
However, for the first half, the company anticipates demand to exceed normal seasonal levels across main markets. Assuming that consumer spending patterns start to normalize by mid-year, the company estimates that also market demand will normalize during the second half. All together, market demand for appliances for the full year 2021 will be positive in main markets.
For 2021 the company expects a continued positive organic contribution from volume, price and mix driven by a favorable market demand, higher prices compensating for raw material headwind, and increases in innovation/marketing investments.
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