Electrolux reported its third quarter results, recording a net sales increase to 35,244 million Sek, corresponding to an organic sales growth of 1.2%. Strong price execution and mix improvements were partly offset by significantly lower volumes driven by weaker market demand. Operating income amounted to -385 million Sek , corresponding to a margin of -1.1%.
Operating income includes a negative non-recurring item of 350 million Sek, related to the exit from the Russian market, impacting business area Europe. Excluding this non-recurring item, operating income amounted to -35 million Sek, corresponding to a margin of -0.1%. In addition to the weaker market environment, supply chain imbalances resulted in a significantly elevated cost level, mainly in business area North America that reported a loss of 1.2 billion.
«In the third quarter – Jonas Samuelson, president and CEO of Electrolux commented – the weaker market environment in combination with supply chain imbalances resulted in significantly lower volumes and operational inefficiencies that led to breakeven earnings, excluding the one-time cost to exit the Russian market. Price once again offset significant cost inflation, predominantly in raw materials and logistics. The year-over-year earnings decline was primarily driven by business area North America, that reported a substantial loss, but also by our European operations. Both of our other business areas, Latin America and Asia-Pacific, Middle East and Africa, increased earnings through successful product launch execution and good cost management. Although we are experiencing a challenging time, I am confident that Electrolux remains well positioned to create value and we will continue to invest in consumer experience innovations».