Electrolux Posts Loss In Q2 On Weak Demand; June Organic Sales Up; Sees Good Demand In Near Term
(RTTNews) - Swedish home appliances giant Electrolux AB (0MDT.L, 0GQ1.L, ELUXY.PK) reported Friday that its second-quarter loss was 141 million Swedish kronor, compared to last year's profit of 1.01 billion kronor. Loss per share was 0.49 krona, compared to profit of 3.50 kronor a year ago.
The company noted that earnings were hurt by volume drop, which was partly mitigated by the comprehensive cost-cutting measures initiated in March following the Covid-19 pandemic.
Operating loss amounted to 62 million kronor, compared to profit of 1.22 billion kronor a year ago.
Net sales declined 20 percent to 23.48 billion kronor from 29.23 billion kronor last year. Sales decreased 16.6 percent adjusted for currency translation effects, as well as organically.
Volumes declined in all four business areas, heavily impacted by the coronavirus pandemic. In North America, volumes decreased primarily due to supply constraints, while the other three business areas were impacted mainly by lower demand.
However, the market situation improved significantly towards the end of the quarter and for the month of June, organic sales increased approximately 3 percent year-over-year.
Looking ahead, for the year 2020, the company continues to expect a material financial impact related to the pandemic.
President and CEO Jonas Samuelson said, "The pandemic situation remains fluid, creating an extraordinary degree of uncertainty over what the full global impact on demand will be for the second half of the year. .... In the near term, we see good demand, partially driven by pent-up demand from April/May and the strong stimulus programs. However, for the full year 2020 we continue to expect negative demand in most of our main markets."
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