Electrolux posts strong results for 2009

05 February 2010

Electrolux has announced strong results for the fourth quarter and for the full year 2009.

The Swedish home appliance maker returned to profit, with president and chief executive Hans Stråberg describing last year as "one of the best ever".

However, shares in Electrolux fell sharply by 12% when the results were released, as the fourth quarter result was weaker than expected.

In a statement, Electrolux said: "There are no indications of a strong recovery in any of the group's main markets."

The company posted a net profit of 664 million Swedish kronor (£57 million) for the three months to December 31, after a SEK474 million net loss a year earlier. The result missed analysts' expectations for a SEK698 million profit.Cost savings, sales prices and lower costs for raw materials contributed strongly to the company's improvement in income; however, Electrolux said it was now seeing an increase in the cost of raw materials compared to the third quarter of 2009.

"I am very pleased that all our operations have improved their earnings and maintained their sales at the same time as demand has dramatically declined," said Mr Stråberg."A strong product offering has improved the mix. Stable prices and significant cost reductions have also been key for the improved results. At the same time, cyclically low raw-material prices gave us a tail-wind.

"Our results show we have the right strategy. Innovative products, investments in the Electrolux brand and cost efficiencies have paid off. Our strong balance sheet provides us with good growth opportunities."

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Electrolux posts strong results for 2009	Back
05 February 2010 Electrolux has announced strong results for the fourth quarter and for the full year 2009. The Swedish home appliance maker returned to profit, with president and chief executive Hans Stråberg describing last year as "one of the best ever". However, shares in Electrolux fell sharply by 12% when the results were released, as the fourth quarter result was weaker than expected. In a statement, Electrolux said: "There are no indications of a strong recovery in any of the group's main markets." The company posted a net profit of 664 million Swedish kronor (£57 million) for the three months to December 31, after a SEK474 million net loss a year earlier. The result missed analysts' expectations for a SEK698 million profit.Cost savings, sales prices and lower costs for raw materials contributed strongly to the company's improvement in income; however, Electrolux said it was now seeing an increase in the cost of raw materials compared to the third quarter of 2009. "I am very pleased that all our operations have improved their earnings and maintained their sales at the same time as demand has dramatically declined," said Mr Stråberg."A strong product offering has improved the mix. Stable prices and significant cost reductions have also been key for the improved results. At the same time, cyclically low raw-material prices gave us a tail-wind. "Our results show we have the right strategy. Innovative products, investments in the Electrolux brand and cost efficiencies have paid off. Our strong balance sheet provides us with good growth opportunities."