Electrolux: good results especially for premium products



Electrolux operating income for the third quarter increased by more than 20% compared to the same period of the previous year. Operating income reached SEK 1.8 billion, corresponding to a margin of 5.9% (4.8). Higher sales volumes, better mix and cost efficiency contributed to Major Appliances EMEA’s margin improvement in the quarter. Electrolux continued to gain market share in focus categories and premium brands, also thanks to the introduction of new solution, as which of some AEG kitchen appliances. Market demand remained positive, although there are signs of weakening in some markets in Western Europe, including the UK. In any case, Electrolux confirms its expectations of European market demand growth of 2-4% in 2016, however, likely in the lower end of the range. North America was one of the most performant geographical area: here earnings in Major Appliances continued to improve in the quarter and the margin increased to 7.4%. Also Major Appliances Asia/Pacific posted strong organic growth in the quarter driven by sales growth in Southeast Asia and a strong season for air-conditioning in China. Electrolux development in the important Australian market was stable. Operating income improved significantly with an operating margin of 8.3%. The integration of the recently acquired wine cabinet company Vintec is proceeding well.