Electrolux: shares drop after disappointing results
(CercleFinance.com) - Electrolux shares have hit a four-year low on Friday, after the Swedish household appliance maker published lackluster results that showed several areas of weakness.
While third-quarter sales rose to 30.4 billion Swedish kronor, from 29 billion a year ago, largely due to price increases, the group's operating income fell to 1.75 billion Swedish kronor, from 1.98 billion Swedish kronor in the same period of 2017.
This means its margin fell to 5.8%, compared to 6.8% a year ago.
In its statement, Electrolux cited the impact of higher input costs, as well as lower volumes and accelerating currency headwinds in Latin America.
The firm also mentioned that its business in North America has faced higher inflationary costs from tariffs, in addition to lower sales to private labels.
This string of announcements has led to the Electrolux tumbling 6.8% in Stockholm this Friday.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
While third-quarter sales rose to 30.4 billion Swedish kronor, from 29 billion a year ago, largely due to price increases, the group's operating income fell to 1.75 billion Swedish kronor, from 1.98 billion Swedish kronor in the same period of 2017.
This means its margin fell to 5.8%, compared to 6.8% a year ago.
In its statement, Electrolux cited the impact of higher input costs, as well as lower volumes and accelerating currency headwinds in Latin America.
The firm also mentioned that its business in North America has faced higher inflationary costs from tariffs, in addition to lower sales to private labels.
This string of announcements has led to the Electrolux tumbling 6.8% in Stockholm this Friday.
Copyright (c) 2018 CercleFinance.com. All rights reserved.