STOCKHOLM–Electrolux AB on Thursday posted a 36% fall in third-quarter net profit as earnings were weighed by one offs.
The Swedish home-appliance manufacturer ELUX.B, +5.75% also said that the full-year combined negative impact from raw material prices, trade tariffs and currency moves will be at the top of its previous guidance.
Electrolux made a net profit of 739 million Swedish kronor ($76.7 million), down from SEK1.16 billion last year, while sales rose 6.8% to SEK32.52 billion.
A FactSet analyst poll had seen net profit at SEK880 million on sales of SEK31.53 billion.
In the quarter, the company recorded SEK1.74 billion of one-offs relating to restructuring costs and a legal settlement that weighed on earnings, partially offset by a SEK1.33 billion tax rebate, all of which the company flagged last month.
However, earnings still dropped more than analysts had expected, as manufacturing transition costs in North America and higher marketing investments also hit earnings.
Price increases continued to fully offset the headwinds from higher raw material costs, trade tariffs and currency, while mix improvements across business areas all contributed positively, it added.
Chief Executive Jonas Samuelson said that based on current trade-tariff levels, the company estimates the negative year-on-year impact from raw materials, trade tariffs and currency to be approximately SEK1.6 billion in 2019, compared to the previous estimate of SEK1.4 billion-SEK1.6 billion.
The company continues to expect slightly positive 2019 market demand for appliances in Europe, Latin America and Southeast Asia, while in North America and Australia expectations are still seen to be slightly negative.
Add Comment