Electrolux reports strong Q2 profit, updates savings target

Stockholm, July 19, 2024 – Swedish appliance maker Electrolux on Friday reported a much stronger-than-expected second-quarter profit and updated its savings program, saying it now plans to save around 4 billion Swedish crowns ($347 million) this year instead of the previously targeted 4-5 billion. The company cited higher marketing and freight costs for the decision.

Electrolux also downgraded its outlook for demand in Europe and the Asia-Pacific region from neutral to negative as high inflation continues to weigh on consumer spending on larger purchases.

The company reported an operating profit of 419 million crowns for the second quarter of 2024, compared with an operating loss of 124 million in the same period last year. The profit was much higher than the 98 million crowns that analysts on average had forecast in a Reuters poll.

In the United States, where it faces high costs and strong competition from domestic rival Whirlpool, Electrolux reported a 4.7% increase in organic sales in the second quarter thanks to higher volumes. There is still work to be done in this market, but things are constantly improving, CEO Jonas Samuelson said.

Key takeaways:

• Electrolux beat profit expectations for the second quarter.
• The company is now targeting savings of 4 billion crowns this year.
• Electrolux downgraded its outlook for demand in Europe and Asia-Pacific.
• The company saw strong sales growth in the United States.

(1 EUR = 11.5338 SEK)

Additional notes:

• Electrolux is a Swedish multinational corporation that produces household appliances for consumers and businesses.
• The company has operations in over 150 countries and employs around 52,000 people.
• Electrolux is one of the world’s leading appliance makers, with brands such as Electrolux, Frigidaire, and AEG.