Electrolux: third-quarter profit in line with forecast
(CercleFinance.com) - The Swedish home appliances maker Electrolux posted third-quarter profit that was in line with its its forecast on Friday and stuck to its 2019 outlook, despite a tough environment, sending its shares up.
Operating income fell to 1.1 billion Swedish kronor in the past quarter, from 1.75 billion Swedish kronor a year ago, falling short of the consensus of 1.15 billion Swedish kronor.
The maker of vacuum cleaners and washing machines said its operating income included non-recurring items relating to restructuring charges, recovery of overpaid sales tax in Brazil and a legal settlement in the US.
As a result, the group's operating margin fell to 3.7% compared to 5.8% a year ago.
However, sales rose to 32.5 billion Swedish kronor, compared to the consensus of 31.7 billion Swedish kronor and 30.4 billion Swedish kronor a year ago.
Electrolux said price increases continued to fully offset the headwinds from higher raw material costs, trade tariffs and FX factors.
The company also repeated its market view for 2019 and said that it is confident that it is well positioned to create shareholder value.
These results seemed to please investors, with the shares up 5% in Stockholm on Friday.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
Operating income fell to 1.1 billion Swedish kronor in the past quarter, from 1.75 billion Swedish kronor a year ago, falling short of the consensus of 1.15 billion Swedish kronor.
The maker of vacuum cleaners and washing machines said its operating income included non-recurring items relating to restructuring charges, recovery of overpaid sales tax in Brazil and a legal settlement in the US.
As a result, the group's operating margin fell to 3.7% compared to 5.8% a year ago.
However, sales rose to 32.5 billion Swedish kronor, compared to the consensus of 31.7 billion Swedish kronor and 30.4 billion Swedish kronor a year ago.
Electrolux said price increases continued to fully offset the headwinds from higher raw material costs, trade tariffs and FX factors.
The company also repeated its market view for 2019 and said that it is confident that it is well positioned to create shareholder value.
These results seemed to please investors, with the shares up 5% in Stockholm on Friday.
Copyright (c) 2019 CercleFinance.com. All rights reserved.