April 20, 2024


Elegant home interior

Electrolux posts 4Q beat on property-advancement growth

STOCKHOLM–Electrolux AB on Tuesday posted a forecast-beating fourth-quarter web income as shoppers ongoing to allocate a lot more of their domestic budgets to property enhancement, but cautioned that visibility this calendar year remains confined.

The Swedish property-appliance company posted internet earnings of 1.86 billion Swedish kronor ($220.7 million) in the quarter, up from SEK560 million last 12 months, as gross sales rose 5.9% to SEK33.9 billion.

Analysts polled by FactSet experienced envisioned web income of SEK1.64 billion on revenue of SEK31.9 billion.

The corporation declared a total-year dividend of SEK8 a share, up from SEK7 previous calendar year.

For the initial half of 2021, the corporation expects the sturdy client need from enhanced residence-improvement investing to stay. In addition, retail inventories continue to be lower, it extra.

“We as a result count on demand from customers for the 1st 50 % of 2021 to exceed standard seasonal stages across our main marketplaces, though ability and element availability will very likely keep on being constraining factors,” Main Govt Jonas Samuelson mentioned.

“Assuming that consumer spending designs start to normalize by mid-year, we estimate that also market place need will normalize throughout the 2nd 50 percent of 2021.”

Electrolux expects industry desire for appliances for the full yr of 2021 to be marginally positive in Europe and good just about everywhere else.

The corporation sees a unfavorable influence from raw substance expenditures, trade tariffs, forex and labor price inflation of SEK1.6 billion to SEK2 billion in 2021, with forex results hitting revenue by 7% and operating income by SEK400 million. Money expenditure is witnessed at all around SEK7 billion.

Electrolux said it expects previously declared rate increases to absolutely offset raw product and currency headwinds in 2021.

Create to Dominic Chopping at [email protected]