- Wednesday, October 16, 2024
By Dominic Chopping
Stockholm--Electrolux, the Swedish home-appliance manufacturer, has projected that demand in its major markets will stabilize in 2024. However, the company does not expect a sequential improvement in underlying earnings during the first quarter. This is due to the fact that its cost-saving plan will take time to generate significant impact.
During the fourth quarter, Electrolux experienced a SEK1.4 billion loss in its North America business. This was primarily driven by price pressure, lower volumes, and elevated cost levels related to its cooking-manufacturing transition. The overall net negative impact from one-off items in the quarter was SEK2.49 billion.
Electrolux is currently undergoing a restructuring process, which is anticipated to result in net cost savings of SEK10 billion to SEK11 billion. The company expects these savings to primarily contribute to earnings during the second half of 2024.
However, given the current Red Sea situation, there is some uncertainty related to ocean freight costs.
In the fourth quarter, Electrolux reported a net loss of SEK4.11 billion compared to a loss of SEK1.92 billion in the same period the previous year. Sales also fell by 0.4% to SEK35.64 billion.
According to a FactSet analyst poll, a net loss of SEK2.9 billion had been anticipated.
Chief Executive Jonas Samuelson commented, "Looking into the beginning of 2024, weak consumer sentiment is anticipated to continue with consumers shifting to lower price points and postponing purchases in discretionary categories."
All Rights Reserved © 2024
Post a comment