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Electrolux Q4 sales declined, profit achieved

Staff Writer | February 1, 2017
Electrolux reported a profit in its fourth quarter, compared to loss last year, despite weak Latin American results and nearly flat European sales.
Electrolux   Income was 1.27 billion Swedish kronor
On an organic basis, sales declined. The company also proposed a higher dividend for the year 2016.

For the fourth quarter, income was 1.27 billion Swedish kronor, compared to last year's loss of 393 million kronor. Earnings per share were 4.40 kronor, compared to loss of 1.37 kronor a year ago.

Operating income was 1.62 billion kronor, compared to loss of 202 million kronor a year ago. The prior year's operating income included costs of 1.66 billion kronor related to the not completed acquisition of GE Appliances.

Major Appliances North America and Asia/Pacific recorded growth of 24 percent and 41 percent, respectively. Meanwhile, Europe, Middle East and Africa posted lower income, while Latin America slipped to a loss.

Net sales increased 1.1 percent to 32.14 billion kronor from prior year's 31.79 billion kronor as currency translation had a positive impact of 4%. Organic sales declined by 3%.

In the quarter, sales for Major Appliances North America grew 4 percent, despite impact of increased price pressure in the market and lower sales volumes of products under private labels.

Meanwhile, significantly weaker market demand and cost measures hurt sales for Major Appliances Latin America by 10.2 percent.

The company noted that sales for Small Appliances also declined, mainly as a result of actions to exit from unprofitable product categories.

Further, the company said its Board proposed a dividend for 2016 of 7.50 kronor, higher than last year's 6.50 kronor per share, to be paid in two installments.

The first installment is estimated to be paid on March 30, and the second installment on October 2, 2017.