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Electrolux Q2 Profit More Than Doubles; Re-confirms FY19 Market View

Swedish home appliances giant Electrolux AB (0MDT.L,0GQ1.L,ELUXY.PK) reported Thursday that its second-quarter income climbed 119 percent to 1.13 billion Swedish kronor from last year's 517 million kronor. Earnings per share more than doubled to 3.94 kronor from 1.80 kronor a year ago.

Operating income grew 96 percent from last year to 1.62 billion kronor, corresponding to a margin of 5.1 percent, up from 2.6 percent a year ago.

Net sales increased 1 percent to 31.69 billion kronor from last year's 31.35 billion kronor. Sales adjusted for currency translation effects declined 2.7 percent, driven by lower volumes.

The company noted that price increases fully offset the headwinds from higher raw material costs, trade tariffs and currency as well as lower volumes.

Looking ahead, the company re-confirmed its market view for 2019 with the exception of Southeast Asia where it now estimates the demand in the region to be slightly positive.

Based on current trade tariff levels, the company now projects negative impact from raw materials, trade tariffs and currency to be approximately 1.4 billion kronor to 1.6 billion kronor in 2019. This is compared to previous estimate of approximately 1.7 billion kronor to 1.9 billion kronor.

Further, the company said the preparations for the intended separation and subsequent listing of the Professional Products business area are proceeding according to plan.

The Board has reconfirmed its plan to propose to the shareholders that the Professional Products business area is distributed to the shareholders with the aim to achieve listing on the Nasdaq Stockholm during the first quarter or, at the latest, the second quarter of 2020.

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