Electrolux reports mixed earnings news
Electrolux, the world's leading electrical appliance maker, reported a 53.2 per cent fall in second quarter net earnings that it attributed to a rise in raw materials costs and delays in new product launches.
By Agencies |
STOCKHOLM: Electrolux, the world's leading electrical appliance maker, reported a 53.2 per cent fall in second quarter net earnings that it attributed to a rise in raw materials costs and delays in new product launches.
Shares in the Swedish group nonetheless rose 6.23 per cent to reach 170.5 kronor (local currency) on mid-morning trade here, with investors cheered by a gain in sales that exceeded expert expectations.
Net earnings in the April-June period came to 545 million kronor, down 53.2 per cent from the same quarter last year.
But sales rose 1.8 per cent to 25.785 billion kronor, beating expectations of 24.486 billion.
The company said tht while it enjoyed strong sales volumes in Latin America the introduction of new products in Europe faced delays at a time when raw materials prices were rising.
"Raw material costs continue to be a source of concern," said Electrolux chief executive Hans Straaberg.
At the operating level, profits rose 3.2 percent in the second quarter to reach 890 million kronor, reflecting strong sales in North and South America.
Shares in the Swedish group nonetheless rose 6.23 per cent to reach 170.5 kronor (local currency) on mid-morning trade here, with investors cheered by a gain in sales that exceeded expert expectations.
Net earnings in the April-June period came to 545 million kronor, down 53.2 per cent from the same quarter last year.
But sales rose 1.8 per cent to 25.785 billion kronor, beating expectations of 24.486 billion.
The company said tht while it enjoyed strong sales volumes in Latin America the introduction of new products in Europe faced delays at a time when raw materials prices were rising.
"Raw material costs continue to be a source of concern," said Electrolux chief executive Hans Straaberg.
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"This is true across the group but during the quarter especially in Europe. During the second quarter raw-material costs continued to increase, and we expect the full-year figure to rise by an estimated two billion kronor. This would amount to an eight-billion-kronor increase in our raw material costs since 2004." At the operating level, profits rose 3.2 percent in the second quarter to reach 890 million kronor, reflecting strong sales in North and South America.
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