Electrolux sees lower hit from raw materials and trade tariffs this year

Electrolux sees lower hit from raw materials and trade tariffs this year

Reuters  | Jul 18, 2019 08:25

Electrolux sees lower hit from raw materials, trade tariffs in 2019

STOCKHOLM (Reuters) - Swedish home appliance maker Electrolux (ST:ELUXb) said on Thursday it had been able to offset pressures from higher raw materials, trade tariffs and currency with price hikes so far in 2019, and that it also expected to do so for the full year.

The company, a rival of Whirlpool , said it expected a smaller hit in 2019 from raw materials, trade tariffs and currency of 1.4-1.6 billion crowns versus its previous forecast for 1.7-1.9 billion.

"In the first half of 2019, price has fully offset this headwind and we expect that to be the case also for 2019 as a whole," Electrolux CEO Jonas Samuelson said in a statement, while adding a note of caution:

"The uncertainty on trade tariffs continues to impact our visibility".

Electrolux's ability to cope with pressures from the China-U.S. trade war via price hikes and other efficiency measures has been a key concern for analysts and investors over the past year.

The company affirmed its full-year market outlook for North America and Europe, its two biggest markets, saying it expected North America to be slightly negative and Europe slightly positive.

Operating earnings at the owner of brands such as Electrolux, Frigidaire, AEG and Anova, rose to 1.62 billion Swedish crowns (139.12 million pounds) from 827 million a year earlier, roughly matching the mean forecast of 1.60 billion crowns in a poll of analysts based on Refinitiv data.

Earnings in the year-ago quarter were 1.65 billion when adjusting for non-recurring items.

© Reuters. Interiors of Electrolux R&D facility are pictured at their plant in Pordenone

Related News

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Discussion
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (USA) English (India) English (Canada) English (Australia) English (South Africa) English (Philippines) English (Nigeria) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 简体中文 繁體中文 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
NoYes
CancelYes
Saving Changes

+

Download the Investing.com App

Get free real time quotes, charts and alerts on stocks, indices, currencies, commodities and bonds. Get free top of the line technical analysis/predictors.

Investing.com is better on the App!

More content, faster quotes and charts, and a smoother experience is available only on the App.