STOCKHOLM, Jan. 11, 2023 /PRNewswire/ -- Electrolux
announced today that operating income in the fourth quarter of 2022
is estimated to be approximately SEK
-2.0bn (0.9), including non-recurring items of SEK -1.4bn (-0.7). The year-over-year earnings
decline was primarily a consequence of weaker consumer demand and
inventory reductions at both retailers and Electrolux in
combination with an elevated cost level. The main contributor to
the weaker than expected earnings in the fourth quarter was
performance in Business Area North America.
Net sales in the fourth quarter for the Group are estimated to
be approximately SEK 36bn, a decrease
of about 8% organically. Operating income excluding non-recurring
items is for the Group estimated to approximately SEK -0.6bn compared to SEK
1.6bn in the fourth quarter 2021. The main contributor to
the earnings decline is Business Area North America with an
operating loss excluding non-recurring items of approximately
SEK 1.2bn, similar to the result in
the third quarter of 2022.
Inventory reduction activities at retailers in the fourth
quarter across regions were larger than expected contributing to a
weak market, which impacted volumes and mix negatively, as well as
resulted in higher promotional activity. The largest impact was in
Business Area North America.
The net negative impact from non-recurring items of
approximately SEK 1.4bn consists of
three items (see table below). In addition to the two previously
communicated items, a US pension plan was terminated and these
pension obligations were transferred to a third party, which
resulted in a reduction of pension liabilities and assets of
SEK 6bn at year-end 2022. These
actions resulted in a negative impact of approximately SEK 0.2bn on operating income in the fourth
quarter due to an excise tax, and a positive cash flow effect of at
least SEK 0.7bn is expected in the
first half of 2023.
Cause of
non-recurring item
|
Impact on
operating income
|
Area impacted
|
Group-wide cost
reduction and North America turnaround program
|
SEK -1.54bn
|
All business areas and
Group
common costs
|
Swiss real estate
divestment
|
SEK +0.39bn
|
Business area
Europe
|
US pension plan
termination
|
SEK -0.21bn
|
Business area North
America
|
Net total of
non-recurring items
|
SEK
-1.36bn
|
|
The earlier communicated Group-wide cost reduction and North America turnaround program to return to
stability and increase profitability started to gain traction
towards the end of the year and the expected positive
year-over-year earnings contribution of SEK
4-5bn in full-year of 2023 is reconfirmed.
All figures relating to 2022 in this press release are
preliminary and unaudited, and the final report for the fourth
quarter of 2022 will be published on February 2, 2023 at about 08.00 CET.
Electrolux will not make any further comments until the final
fourth quarter report has been published.
This is information that AB Electrolux is obliged to make public
pursuant to the EU Market Abuse Regulation. The information was
submitted for publication, through the agency of the contact person
set out above, on 11-01-2023
14:45 CET.
For further information, please contact:
Sophie Arnius, Investor Relations, +46 70 590 80 72
Paul Palmstedt, Electrolux Press Hotline, +46 8 657
65 07
The following files are available for download:
https://mb.cision.com/Main/1853/3696050/1773644.pdf
|
230111 PRM Electrolux
announces loss for the fourth quarter 2022
|
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