Electrolux: positive demand to continue; capex set to rise.
(CercleFinance.com) - At its Capital Markets Day in Stockholm on Thursday, Electrolux said that the overall positive demand trend across most of its markets in 2017 was expected to continue in 2018.
Indeed, the European appliance market should grow by 1%-2% next year, the Swedish white goods giant said, while in North America, demand for appliances should also remain favourable, growing by 2%-3%.
The market recovery in Latin America should also continue, it said, with expected growth of 3%-5% in 2018.
"We're very pleased with our improved operating margin performance, which provides a solid base to take the next steps towards targeted growth and over a business cycle reach Electrolux financial targets of at least 6% EBIT margin and 4% growth," commented CEO Jonas Samuelson.
At the same time, the level of capex will increase over the next three to four years, hence driving growth, Electrolux warned.
The Group's capex in 2018 will hence increase to approximately 6 billion Swedish kronor.
Listed on the Nasdaq Nordic market, Electrolux shares are currently down 2.8% at 281 Swedish kronor.
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