STOCKHOLM–(BUSINESS WIRE)–Regulatory News:
Good earnings development in the quarter.
Electrolux (STO:ELUXA) (STO:ELUXB) operating income of SEK 1,268 million
for the first quarter 2016 more than doubled compared to the first
quarter the previous year. Major Appliances EMEA continued the positive
trend and delivered an operating margin over 6% for the quarter and the
last 12 months. Major Appliances North America achieved a significant
turnaround compared with the weak first quarter 2015. Furthermore, the
earnings trend in Professional Products remained positive and operating
income in Asia/Pacific and Small Appliances also improved. The
performance in the important Latin America region continued to be
impacted by a weak market and currency environment.
The appliance market continued to grow in Western Europe and was
particularly strong in Italy, Germany and the UK. Most markets in
Eastern Europe also grew. Russia appears to have stabilized at low
levels following the significant downturn in 2015. Electrolux gained
market share in the focus segments premium branded built-in kitchen and
laundry. Organic growth of 7%, driven by higher volumes and improved
mix, together with strong focus on cost efficiency, contributed
positively. We confirm our expectations for market demand growth and
forecast the Western European market to grow by 2-3% in 2016 and the
market in Eastern Europe by approximately 2%.
Our operations in North America continued to recover and operating
income increased significantly year-over-year. Revenue growth of 6% and
improved cost efficiency contributed to the results. The work to
stabilize and increase efficiency in the cooking plant in Memphis is
making progress according to plan. Volume growth in the US market for
appliances has remained healthy and increased by 8% in the first
quarter. We now expect market demand for appliances to grow by 4-5% in
The financial performance in Major Appliances Latin America continued to
be affected by the weak market situation and unfavorable currency rates.
Market demand for appliances in Latin America in general weakened
significantly year-over-year in most markets. As a consequence,
Electrolux sales volumes decreased in the quarter while market shares
were stable. To mitigate these market conditions and currency headwinds,
we continued to reduce structural costs and also increased prices. We
expect the Latin American market, mainly Brazil, to remain weak in 2016.
In Asia/Pacific, operating income increased following a good development
in Australia, New Zealand and Southeast Asia. Earnings were also
positively impacted by the repositioning and reduced sales activities in
China. This work will continue. Small Appliances benefited from cost
reductions and improved sales in more profitable categories and markets.
Professional Products continued the profitable growth trajectory in both
Laundry Systems and Food Service.
The focus on increasing the operating margin of the Group will continue
throughout the year, with emphasis on product cost efficiency leveraging
initiatives including modularization and automation, and launches of
innovative premium products delivering great consumer experiences. The
strong efforts to improve financial results in the challenging Latin
America region, as well as the refocus of the Small Appliances business
area will also have continued high priority.
Stockholm, April 28, 2016
President and CEO
Electrolux discloses the information provided herein pursuant to the
Securities Market Act and/or the Financial Instruments Trading Act. The
information was submitted for publication at 08.00 CET on April 28, 2016.
Electrolux is a global leader in home appliances and appliances for
professional use, based on deep consumer insight. We offer thoughtfully
designed, innovative and sustainable solutions, developed in close
collaboration with professional users. The products include
refrigerators, ovens, cookers, hobs, dishwashers, washing machines,
vacuum cleaners, air conditioners and small domestic appliances. Under
esteemed brands including Electrolux, AEG, Zanussi, Frigidaire and
Electrolux Grand Cuisine, the Group sells more than 60 million products
to customers in more than 150 markets every year. In 2015, Electrolux
had sales of SEK 124 billion and 58,000 employees. For more information
go to www.electroluxgroup.com
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Catarina Ihre, Vice President Investor Relations
(0)8 738 60 87
Electrolux Press Hotline
+46 8 657