Swedish home appliances giant Electrolux AB (0MDT.L,0GQ1.L,ELUXY.PK) reported Friday that its third-quarter total group income surged 219 percent to 2.36 billion Swedish kronor from last year’s 739 million kronor. Earnings per share were 8.20 kronor, up from 2.57 kronor a year ago.
Operating earnings were 3.22 billion kronor, 203 percent higher than last year. Operating margin was 10.1 percent of net sales, up from 3.5 percent last year, mainly driven by strong volumes and prices.
Net sales amounted to 32 billion kronor, up 6 percent from 30.33 billion kronor a year ago. Organic sales increased 15.2 percent.
The company reported significant market recovery driven mainly by pent-up demand and government stimulus programs.
Further, the Board proposed to reinstate a dividend for the fiscal year 2019 based on the recovery in earnings and cash flow. The dividend for 2019 will be 7 kronor per share, down from last year’s 8.50 kronor per share, to be paid in one installment.
Looking into the fourth quarter, the company said, “visibility remains limited as demand may be impacted by several factors, especially as the pandemic is still very much present. However, we currently anticipate that consumer demand and thus financial performance will normalize gradually going forward. Considering this and the catch-up effect during the third quarter, we are revising our market outlook for the full-year 2020 upwards.”
The company now expects market demand for appliances in Europe to be slightly positive, in North America to be slightly positive to positive and in Latin America to be positive. The company previously expected demand to be negative in all regions.
The combined demand in larger markets in the Asia-Pacific, Middle East and Africa region are still expected to be negative for 2020.
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