Electrolux Q4 Profit From Cont. Ops. Declines YoY; Organic Sales Down 2.8%

Electrolux (0MDT.L, 0GQ1.L, ELUXY.PK) reported that its fourth-quarter income for continuing operations amounted to 366 million Swedish kronor compared to 1.24 billion kronor, prior year. Earnings per share from continuing operations was 1.27 kronor compared to 4.30 kronor. Operating income for continuing operations declined 43% year-on-year to 960 million kronor from 1.67 billion kronor, last year. Operating income for Electrolux Professional declined due to lower volumes and transition costs.

Electrolux said three out of four business areas improved earnings, partly driven by mix improvements, but lower volumes and transition costs related to the consolidation of manufacturing in North America impacted earnings negatively.

Fourth-quarter net sales were 32.01 billion Swedish kronor compared to 32.02 billion kronor, last year. Sales for the continuing operations decreased by 2.8% in the quarter, excluding currency translation effects. This was mainly a result of lower volumes in North America.

For fiscal 2019, earnings per share was 6.30 kronor compared to 9.86 kronor, prior year. Net sales were 118.98 billion Swedish kronor compared to 115.46 billion kronor, prior year. Sales for continuing operations declined 1.3%, excluding currency translation effects. Organic sales declined by 1.0%, for the fiscal year period.

President and CEO Jonas Samuelson, stated: "Looking ahead, we expect the capacity constraints in Anderson to be gradually resolved during the first half of 2020, but we will have transition costs also impacting the third quarter. Given this situation, lower volumes and higher costs will impact earnings for the first quarter 2020 resulting in a loss for business area North America."

The Board proposed a dividend for 2019 of 8.50 kronor per share which will be paid in two equal installments, the first with the record date April 2, 2020 and the second with the record date October 2, 2020. The first installment is estimated to be paid on April 7, 2020 and the second installment on October 7, 2020.


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