(Reuters) -Home appliance maker Electrolux on Thursday posted a better than expected operating profit for the final quarter of 2024, but warned potential U.S. tariffs could mean further uncertainty for the North American market.
The Swedish group reported an operating profit excluding non-recurring items of 1.25 billion Swedish crowns ($113.6 million) for the fourth quarter, beating analysts’ average estimate of 1.22 billion crowns, according to LSEG’s IBES data.
Its North America division booked an operating profit of 45 million crowns, breaking a streak of ten consecutive quarterly losses in the region.
“In North America good momentum from our new products and improved productivity contributed to an improvement in operating income,” CEO Yannick Fierling said in a statement.
However, J.P.Morgan analysts said that the operating margin of 0.4% the region was below the 0.9% expected by the market.
Electrolux’s shares were down 6.5% as of 1100 GMT.
“Stock has outperformed in past couple of months, and with somewhat weaker guide for 2025 earnings bridge, we may see a travel and arrive today,” J.P.Morgan added in the note.
Fierling, who took the CEO role at the start of 2025, said that possible new trade policies in the U.S. could impact demand, while “significant headwinds” from currency exchange and negative pricing could also hit results this year.
President Donald Trump said on Tuesday he still planned to impose 25% tariffs on imports from Mexico and Canada. He has also pledged to introduce tariffs on imports from Asia, from where Electrolux sources about 20% of components for products sold in the United States.
For now it is not possible to prepare any actions to mitigate the potential tariffs as their structure is still unknown, Fierling told Reuters.
Intense competition from China’s Midea and other lower-priced home appliance makers coupled with high inflation, which has left consumers cautious about spending, has squeezed Electrolux’s earnings in recent quarters.
Electrolux, which did not provide a numerical earnings guidance for 2025, said the market outlook was neutral across its geographies. Fierling said there was also uncertainty in Europe, largely due to the political instability in France and Germany.
The company said it would not pay out a dividend for 2024, marking a third year in a row with no return to shareholders.
($1 = 11.0038 Swedish crowns)
(Reporting by Boleslaw Lasocki in Gdansk; Editing by Milla Nissi)
