Electrolux: shares plunge after margin decline

(CercleFinance.com) - Electrolux's first-quarter operating margin dropped to 2.
7%, from 5.1% in the first quarter of 2017, the Swedish home appliance maker said on Friday.

Operating income fell to 764 million Swedish kronor, from 1.4 billion Swedish kronor in the same period one year ago, while net sales dropped to 27.9 billion Swedish kronor from 28.2 billion Swedish kronor.

In a statement, Electrolux said that its results have been dampened an the acceleration in rising raw material costs.

The group now estimates the negative y-o-y impact from higher raw materials costs to be 1.6 billion-1.8 billion Swedish kronor in 2018.

Electrolux partly blames the announcement of trade barriers for steel in the US, but also a further increase in other metals, plastics and logistics costs.

The shares were tumbling 11.3% at 233.8 Swedish kronor on the Nasdaq Nordic market after these comments this morning.

Copyright (c) 2018 CercleFinance.com. All rights reserved.