Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Electrolux reinstates dividend as earnings recover from pandemic blow

Published 25/09/2020, 08:51
Updated 25/09/2020, 08:55
© Reuters. The Electrolux logo is seen during the IFA Electronics show in Berlin

© Reuters. The Electrolux logo is seen during the IFA Electronics show in Berlin

STOCKHOLM (Reuters) - Swedish home appliance maker Electrolux (ST:ELUXb) said on Friday it would propose reinstating dividends after a recovery in earnings and cash flows during the third quarter.

Europe's biggest home appliance maker, whose sales and earnings were hard hit earlier this year during the height of the pandemic, said in a statement it had since seen as strong recovery which has continued through the third quarter.

"Electrolux estimates that the negative impact initially seen related to the pandemic will largely be recovered in the operating profit for the nine-month period ending September 30, including a strong improvement in cash flow," it said.

Shares of the company rose 3.4% in early Friday trading.

The group said it was now proposing a 7 crowns per share dividend to be decided at an extraordinary general meeting on Nov. 3. It had initially proposed a 8.50 crown per share payout for 2019, but the proposal was withdrawn in March due to the pandemic.

Electrolux, which rivals the likes of U.S. Whirlpool (N:WHR), said the recovery had been boosted by pent-up demand and government stimulus programmes impacting consumer spending patterns.

© Reuters. The Electrolux logo is seen during the IFA Electronics show in Berlin

The company cautioned that visibility into the fourth quarter remained limited, "but at present, Electrolux anticipates financial performance to gradually normalize", it added.

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.