Published by Global Banking and Finance Review
Posted on January 30, 2025
(Reuters) -Home appliance maker Electrolux on Thursday posted a better-than-expected operating profit for the final quarter of 2024, but warned potential U.S. tariffs could mean further uncertainty for the North American market.
The Swedish group reported an operating profit excluding non-recurring items at 1.25 billion Swedish crowns ($113.6 million) for the fourth quarter, beating analysts' average estimate of 1.22 billion crowns according to LSEG's IBES data.
Its North America division booked an operating profit of 45 million crowns for the same period, breaking a streak of ten consecutive quarterly losses in the region.
"In North America good momentum from our new products and improved productivity contributed to an improvement in operating income," CEO Yannick Fierling said in a statement.
The group's quarterly sales were 37.97 billion crowns, above the 35.35 billion crowns expected by analysts.
Fierling, who took the CEO role at the start of 2025, however warned that possible new trade policies in the U.S. could impact demand.
President Donald Trump said on Tuesday he still planned to impose 25% tariffs on imports from Mexico and Canada.
Trump has also pledged to introduce tariffs on imports from Asia, from where Electrolux sources about 20% of components for products sold in the United States.
Intense competition from China's Midea and other lower-priced home appliance makers coupled with high inflation, which has left consumers cautious about spending, has squeezed Electrolux's earnings in recent quarters.
Electrolux said it would not pay out a dividend for 2024, marking a third year in a row with no return to shareholders.
($1 = 11.0038 Swedish crowns)
(Reporting by Boleslaw Lasocki in Gdansk; Editing by Milla Nissi)
Explore more articles in the Finance category
