During Electrolux Capital Markets Day today in Stockholm, CEO Jonas Samuelson and other senior officers of the company will present a status update on the Group’s strategy, as well as an overview of the current business environment and general expectations for the year.
The core strategy of Electrolux remains unchanged and is based on the strategic focus areas; profitable growth, innovation, operational excellence and talent and teamship. The presentations cover how Electrolux creates sustainable economic value, through innovative products to improve the consumer experience, and through operational efficiency with focus on cost, quality and flexibility within manufacturing.
The presentations include an overview of the current business performance for Electrolux. The positive market trends for the two largest business areas Major Appliances EMEA and Major Appliances North America are expected to continue during 2016. The previously communicated outlook remains and the Western European market is expected to grow by 2-3% and the North American market by 3-4%. A continued weak macro-economic development in Brazil is expected to have a negative impact on market volumes and on Electrolux operations in the region. Professional Products continues to show a stable development. Actions to restore profitability in Small Appliances and in China are underway.
Other factors affecting Electrolux in 2016 include an expected positive price/mix development. 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 2bn is expected. Raw material costs have been trending downward and are forecast to have a continued positive impact in 2016 of about SEK 750m. Cost savings are estimated to contribute positively in the amount of SEK 750m for the full year. Electrolux continues to step up investments in innovation, product development, design and marketing to support future product launches, with the aim to realize the vision of being the best appliance company in the world as measured by our customers, employees and shareholders.
In addition to CEO Jonas Samuelson, presentations will be held by Tomas Eliasson, CFO, Jan Brockmann, COO, Dan Arler, Head of Major Appliances EMEA, Ruy Hirschheimer, Head of Major Appliances Latin America, and Mike Putt, Managing Director of Australia and New Zealand.
For further information
Contact 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 08.00 CET on February 24, 2016.