Electrolux: profit falls as 'headwinds' hit
(CercleFinance.com) - Electrolux, the Swedish home appliance maker, posted a fall in first quarter profit on Friday, and said uncertainty on trade tariffs continued to reduce its visibility.
Based on current levels, the company now estimates the negative y-o-y impact from raw materials, tariffs and currency to be approximately 1.7 billion - 1.9 billion Swedish kronor in 2019, compared to the previous estimate of approximately 2 billion - 2.4 billion Swedish kronor.
The group still expects price increases to offset these "significant" external headwinds.
However, note that over the first three months of the year, price increases did not totally offset the headwinds from higher raw material costs, trade tariffs and currency.
Excluding special costs, operating income fell to 1.30 billion Swedish kronor in the first quarter, from 1.36 billion kronor a year ago, on net sales that rose to 29.7 billion Swedish kronor from 27.9 billion kronor.
The Electrolux share is currently down 2.2% in Stockholm after this report.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
Based on current levels, the company now estimates the negative y-o-y impact from raw materials, tariffs and currency to be approximately 1.7 billion - 1.9 billion Swedish kronor in 2019, compared to the previous estimate of approximately 2 billion - 2.4 billion Swedish kronor.
The group still expects price increases to offset these "significant" external headwinds.
However, note that over the first three months of the year, price increases did not totally offset the headwinds from higher raw material costs, trade tariffs and currency.
Excluding special costs, operating income fell to 1.30 billion Swedish kronor in the first quarter, from 1.36 billion kronor a year ago, on net sales that rose to 29.7 billion Swedish kronor from 27.9 billion kronor.
The Electrolux share is currently down 2.2% in Stockholm after this report.
Copyright (c) 2019 CercleFinance.com. All rights reserved.