STOCKHOLM–Electrolux AB on Tuesday posted a forecast-beating fourth-quarter web revenue as shoppers ongoing to allocate extra of their home budgets to home enhancement, but cautioned that visibility this calendar year stays constrained.
The Swedish home-equipment company posted internet revenue of 1.86 billion Swedish kronor ($220.7 million) in the quarter, up from SEK560 million very last yr, as profits rose 5.9% to SEK33.9 billion.
Analysts polled by FactSet had envisioned web profit of SEK1.64 billion on product sales of SEK31.9 billion.
The firm declared a complete-12 months dividend of SEK8 a share, up from SEK7 last year.
For the initial fifty percent of 2021, the corporation expects the potent consumer demand from elevated home-advancement paying out to keep on being. In addition, retail inventories continue to be small, it extra.
“We thus be expecting demand for the initially fifty percent of 2021 to exceed standard seasonal ranges across our most important marketplaces, even though capability and element availability will very likely remain constraining aspects,” Main Government Jonas Samuelson said.
“Assuming that purchaser paying out designs start to normalize by mid-year, we estimate that also market place desire will normalize through the next half of 2021.”
Electrolux expects industry desire for appliances for the comprehensive 12 months of 2021 to be a little positive in Europe and favourable just about everywhere else.
The business sees a unfavorable impact from raw material expenses, trade tariffs, currency and labor expense inflation of SEK1.6 billion to SEK2 billion in 2021, with currency consequences hitting sales by 7% and functioning cash flow by SEK400 million. Cash expenditure is found at about SEK7 billion.
Electrolux stated it expects previously declared selling price boosts to completely offset raw substance and forex headwinds in 2021.
Create to Dominic Chopping at [email protected]