June 28, 2022

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UPDATE 3-Electrolux sees strengthen from keep-at-residence craze by first 50 percent of 2021

2 min read

* Q4 operating income 2.5 bln SEK vs consensus 2.3 bln

* Sees better demand from customers yr/yr across markets in H1 2021

* Expects to go on greater raw materials prices to customers

* Sees greater complete costs in 2021

* Sees better revenue in 2021 vs 2020 (Provides information, track record, CEO comment, shares)

STOCKHOLM, Feb 2 (Reuters) – Europe’s greatest house appliances maker Electrolux expects unusually robust need to continue in the coming months after the remain-at-home development throughout the pandemic boosted gross sales in the next fifty percent of 2020.

The Swedish group noted on Tuesday a greater than envisioned rise in fourth-quarter income and proposed lifting its dividend.

“Sales ongoing to gain from individuals allocating more of their house budgets to property advancement and we also executed well on cost and blend,” Main Govt Jonas Samuelson explained in a assertion.

Functioning gain landed at 2.50 billion crowns ($297 million) in opposition to a calendar year-earlier 960 million and a forecast 2.34 billion in Refinitiv poll of analysts.

“For the initially 50 percent of 2021 we foresee that the potent purchaser desire from increased dwelling-enhancement paying out seasoned for the duration of the second 50 % of 2020 will continue being to some extent,” the corporation explained.

That, put together with very low inventories at stores, intended need would be larger than in the very first 50 % of 2020, Electrolux stated, incorporating nonetheless that capability and part availability would likely continue to be constraining elements.

Samuelson reported that though demand from customers may well normalise in the 2nd fifty percent of the yr, group income have been likely to increase from 2020. “We anticipate growth in the full calendar year 2021 in phrases of volume, price tag and merchandise combine,” he advised Reuters.

U.S. rival Whirlpool past 7 days also forecast increased profits this calendar year.

Electrolux said it anticipated to move on growing steel selling prices to clients in 2021 – but increased fees for logistics, ongoing plant efficiency enhancements and internet marketing would possibly signify higher net costs in the 12 months.

The group’s shares, which have risen 10% in the past 12 months, were being minimal changed on the working day by 1130 GMT.

The team, which in March spun off its device Electrolux Professional, proposed a dividend of 8 crowns for every 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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