Electrolux 2Q Sales SEK30.3B – MarketWatch


July 20, 2021 at 3:03 a.m. ET

STOCKHOLM–Electrolux AB said Tuesday that it has continued to benefit from a favorable market, strong price momentum and demand in the second-quarter, but cautioned on increasing component supply constraints.

The Swedish home-appliance manufacturer posted a net profit of 1.38 billion Swedish kronor ($158.9 million) in the quarter from a loss of SEK141 million last year, as sales rose 29% to SEK30.3 billion.

Analysts…

By Dominic Chopping

STOCKHOLM–Electrolux AB said Tuesday that it has continued to benefit from a favorable market, strong price momentum and demand in the second-quarter, but cautioned on increasing component supply constraints.

The Swedish home-appliance manufacturer posted a net profit of 1.38 billion Swedish kronor ($158.9 million) in the quarter from a loss of SEK141 million last year, as sales rose 29% to SEK30.3 billion.

Analysts polled by FactSet had expected net profit of SEK1.55 billion on sales of SEK29.19 billion.

“The market for electronic components is expected to be somewhat more constrained in the third quarter and, hence, we anticipate challenges to fully meet the market’s product mix requirements,” said Chief Executive Jonas Samuelson.

Electrolux said it continues to fully offset the headwind from external factors through price and it expects that to be the case for the full year as well.

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Costs for raw materials, electronic components and logistics are increasing further, resulting in increased pressure on cost efficiency and external cost factors, it added.

Electrolux backed its 2021 regional market guidance but now sees a negative impact from raw-material costs, trade tariffs, currency and labor cost inflation of SEK3 billion-SEK3.5 billion, from SEK2.4 billion-SEK2.8 billion.

Capital expenditure for the year is now seen at SEK6 billion-SEK7 billion, from around SEK7 billion.

The company has decided on an adjusted dividend policy of 50% of annual income and proposed an automatic share redemption of SEK17 a share.

Write to Dominic Chopping at dominic.chopping@wsj.com


View more information: https://www.marketwatch.com/amp/story/electrolux-2q-sales-sek30-3b-271626764312

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