As communicated by the company, during 2017 Electrolux will continue to focus on innovative product launches, in combination with a strong emphasis on cost efficiencies. Market demand in Electrolux largest markets, Europe and North America, is expected to grow moderately. “Market demand has been positive in Europe in 2016, although there have recently been signs of softer demand in some markets, including the UK – explained the company in a official note -. Demand for appliances in Europe is expected to grow by about 1% in 2017”. “Appliance demand in North America has grown for almost four consecutive years – added the company -. We expect continued stable development and forecast volume growth of 2-3% in 2017. Continued pressures on household disposable income in Brazil and Argentina are forecast to have a negative impact on market volumes in these countries, which account for the majority of Electrolux sales in Latin America. Market demand in Argentina and Brazil together, is expected to decrease by approximately 5% in 2017”. As indicated by the company, the work to increase operational efficiency continues and the net cost efficiency is planned to contribute positively with approximately 1.6 billion Swedish krona for the year, excluding the impacts of raw materials and currency fluctuations. The Group’s capital expenditure level is expected to amount to approximately 4 billion Swedish krona. “Electrolux is focused on achieving sustainable profitability in all business areas, with high priority on securing a Group EBIT margin of 6% over the business cycle – Electrolux said -. This will be achieved through innovative product launches and an active product portfolio management, in combination with product and structural cost efficiencies. In all, this will create additional value for our customers, employees and shareholders”.
