Net loss 80 mln crowns vs 648 mln loss (Il Sole 24 Ore Radiocor) - Stockholm, 19 Jul - Swedish appliance maker Electrolux said that its second quarter sales reached 33.819 billion crowns from 32.653 billion a year ago for an organic increase of 6.8% driven by higher volumes in all business areas while price was negative.

Despite challenging market conditions, the mix improved, supported by the new modularized platforms and attractive product offering.

Operating income amounted to 419 million crowns from a loss of 124 million, corresponding to a margin of 1.2% from a negative 0.4%.

Excluding non-recurring items, earnings were 519 million reflecting higher volumes and improved mix partly offset negative price. Group operating income improved by more than 1 billion crowns compared to the first quarter 2024, with a significant reduction of the loss in North America.

Latin America developed strongly with a high organic sales growth and a rolling 12-months operating margin of 7%. Europe continued to be weak driven by built-in kitchen categories.

The group posted a net loss of 80 million in the quarter from the 648 million loss a year ago and a loss per share of 0.30 crowns from a loss of 2.40 crowns the prior year.

Operating cash flow was positive at 1.2 billion crowns compared with 3.137 billion a year earlier.

Market conditions in the second quarter remained similar to the most recent quarters, with the cumulative effect of high inflation and high interest rates continuing to weigh on consumer sentiment.

The exception was Brazil, where the improved consumer sentiment supports demand.

In general, inflation has been somewhat more sticky than anticipated, continuing to weigh on discretionary spend. This has slightly delayed the anticipated improvement in demand, particularly in Europe. Electrolux therefore revised the outlook for market demand in 'Europe, Asia-Pacific' in full year 2024 from neutral to negative. The market outlook for North America remains neutral, while for Latin America it is now positive compared with neutral/positive previously.

Price was negative during the first half of 2024, with price pressure in North America reflecting the lower price levels established in late 2023, and high promotional activity in other markets. As previously communicated, we expect price to be negative for full year 2024, also impacting the second half negatively.

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(RADIOCOR) 19-07-24 12:02:37 (0246) 5 NNNN