August 15, 2022

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UPDATE 3-Electrolux sees enhance from stay-at-house development by means of first 50 % of 2021

2 min read

* Q4 working gain 2.5 bln SEK vs consensus 2.3 bln

* Sees higher need yr/yr across marketplaces in H1 2021

* Expects to go on higher raw product expenses to consumers

* Sees better complete charges in 2021

* Sees better profits in 2021 vs 2020 (Provides information, qualifications, CEO remark, shares)

STOCKHOLM, Feb 2 (Reuters) – Europe’s greatest home appliances maker Electrolux expects unusually strong desire to go on in the coming months after the remain-at-property pattern throughout the pandemic boosted product sales in the second 50 % of 2020.

The Swedish group documented on Tuesday a more substantial than envisioned increase in fourth-quarter financial gain and proposed lifting its dividend.

“Sales ongoing to advantage from people allocating far more of their domestic budgets to residence enhancement and we also executed properly on rate and combine,” Chief Executive Jonas Samuelson explained in a statement.

Operating profit landed at 2.50 billion crowns ($297 million) against a year-earlier 960 million and a forecast 2.34 billion in Refinitiv poll of analysts.

“For the 1st 50 % of 2021 we anticipate that the strong consumer desire from elevated residence-enhancement expending knowledgeable during the 2nd 50 % of 2020 will remain to some extent,” the business stated.

That, merged with very low inventories at suppliers, intended demand from customers would be bigger than in the initial 50 percent of 2020, Electrolux reported, introducing nonetheless that capacity and element availability would very likely continue being constraining things.

Samuelson claimed that while demand from customers may possibly normalise in the 2nd half of the yr, group revenue ended up probable to increase from 2020. “We assume progress in the comprehensive year 2021 in terms of quantity, price and products mix,” he informed Reuters.

U.S. rival Whirlpool last 7 days also forecast larger income this year.

Electrolux claimed it anticipated to go on climbing metallic price ranges to buyers in 2021 – but better expenses for logistics, ongoing plant performance advancements and marketing and advertising would most likely imply better net expenditures in the yr.

The group’s shares, which have risen 10% in the past 12 months, have been small improved on the working day by 1130 GMT.

The team, which in March spun off its device Electrolux Qualified, proposed a dividend of 8 crowns for each share for 2020, up from 7 crowns for 2019 and in line with expectations.

$1 = 8.4174 Swedish crowns Reporting by Anna Ringstrom enhancing by Johannes Hellstrom, Simon Johnson and Susan Fenton

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