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July 8, 2020, 2:25 a.m. EDT

Electrolux forecast lifted by sales growth, cuts

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By Dominic Chopping

STOCKHOLM--Electrolux AB said late Tuesday that it will report a smaller loss than previously anticipated for the second quarter of 2020, driven by organic sales growth of 3% in June and successful cost cuts.

The Swedish home-appliance manufacturer said it now expects to report a second quarter operating loss of around 100 million Swedish kronor ($10.8 million), having previously said it expected a "significant" loss.

Net sales in the quarter are seen at around SEK23.5 billion, a decrease of 17% organically on the year.

In April, demand and production in several of the company's main markets were severely hit by the strict countermeasures initiated by local authorities to limit the spread of the coronavirus pandemic. Group sales in April fell 30% but the company said that as restrictions have gradually been lifted, markets primarily in Europe have developed more positively than expected in the latter part of the quarter.

In addition, Asia Pacific and Middle East and Africa businesses have been well positioned with its products and contributed to earnings during the quarter, it said.

Cost cuts through furloughs in several markets and significantly reduced discretionary spending have also helped earnings by creating more favorable cost efficiency in the quarter than previously anticipated, it said.

Electrolux said these figures are preliminary and unaudited, with the final report for the second quarter to be published on July 17.

Write to Dominic Chopping at dominic.chopping@wsj.com

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