The favorable market development for Electrolux largest business areas Major Appliances EMEA and Major Appliances North America is expected to continue in 2016. Overall global demand for appliances is forecast to be slightly positive.
Demand for appliances in Western Europe is expected to continue to improve and grow in the range of 2 – 3% for the full year 2016. Demand in Eastern Europe is expected to increase by approximately 2%, although there remains a high degree of uncertainty regarding the development in Russia and Ukraine. Demand in North America has improved for the past three years. We expect a continued stable development and forecast growth of 2 – 4% for 2016. A continued weak macro-economic outlook in Brazil is expected to have a negative impact on market volumes.
Other factors affecting Electrolux in 2016 include an expected positive price/mix development for the Group. Currency headwinds, mainly in Brazil, will continue to be mitigated with price increases. For 2016, at current currency rates, a negative transaction impact for the Group of SEK 1.5 bn is expected.
Raw material costs have been trending downward and are expected to have a continued positive impact in 2016 of about SEK 550m. Cost savings are estimated to contribute positively in the amount of SEK 750m for the full year. The Group’s capital expenditure level remains stable and is expected to amount to approximately SEK 4 bn in 2016.
Electrolux continues to step up investments in innovation, product development, design and marketing to support future product launches, with the aim to reach the vision of being the best appliance company in the world as measured by our customers, employees and shareholders.
For further information, please contact:
- Catarina Ihre, Vice President Investor Relations at 46 (0)8 738 60 87
- Electrolux Press Hotline, 46 8 657 65 07.
Electrolux discloses the information provided herein pursuant to the Securities Market Act and/or the Financial Instruments Trading Act. The information was submitted for publication at 17.30 CET on November 30, 2015
