GAAP net loss margin of (7.3)% and GAAP loss per diluted share of $(6.62) impacted by non-recurring charges of $747 million, largely driven by loss from sale of Russia business and EMEA asset impairment
Delivered ongoing (non-GAAP) EBIT margin(2) of 9.0% and ongoing (non-GAAP) earnings per diluted share(1) of $5.97, despite elevated cost inflation and demand slowdown
North America region delivered strong results with EBIT(3) margin of 14.1% led by previously executed cost-based price increases offset by lower volumes and elevated cost inflation
Returned ~$400 million in repurchases and dividends in the quarter, on track with commitment to return over $1.5 billion to shareholders in the year
Progressed EMEA strategic review and global portfolio transformation with the agreement to sell the Whirlpool Russia business
Revised full-year 2022 guidance to $9.50 to $11.50 earnings per diluted share on a GAAP basis and $22.00 to $24.00 on an ongoing basis(2), cash provided by operating activities of $1.85 billion and free cash flow(4) of $1.25 billion FULL-YEAR 2022 OUTLOOK
Expect full-year 2022 revenues of approximately $20.7 billion (down approximately 6 percent)
Reduced earnings per diluted share from $24.00 to $26.00 to $9.50 to $11.50 on a GAAP basis and $22.00 to $24.00 on an ongoing basis(2)
Reduced cash provided by operating activities to $1.85 billion from $1.95 billion; free cash flow(4) of $1.25 billion remains unchanged
Updated GAAP and adjusted tax rate (non-GAAP) from 24 to 26 percent to a GAAP tax rate of 34 to 36 percent and an adjusted tax rate (non-GAAP) of 21 to 23 percent
Category Archives: Financial
Panasonic 2022 strategy for Middle East and Africa
Panasonic Marketing Middle East & Africa (PMMAF) restated its commitment of MEA market expansion and consumer wellbeing at its regional convention, held in Dubai, that unveiled the brand’s new global motto – “Live Your Best.”
The new slogan embodies Panasonic’s commitment to providing solutions that make life simpler, safer, healthier, and more enjoyable for the customers helping them to live their best. Meanwhile, the brand will focus on expanding its regional market share to cater to the evolving customer demands with solutions that make homes, public premises, and businesses a healthy and convenient Panasonic plans to introduce a lineup of 64 new products to support this mission in 2022.
Some of the new products with superior technologies and Japanese excellence were spotlighted at the event. Key highlights amongst many were the nanoe™ X Air conditioners which can inhibit pathogenic microorganisms (bacteria, fungi, and viruses) and allergens. The ACs will not only cool and heat the surroundings but also clean the indoor air, offering 24-hour protection to keep living spaces fresh and clean, so consumers can benefit from a healthier life.
New Abaya Wash washing machines were positioned as distinctive hygiene systems that protect families by eliminating 99.99%* of bacteria from the clothes while washing. The brand also emphasized on nutrition and food hygiene through its latest “Nutri TaFreez” refrigerator series that feature speedy freezing technology specifically for preserving nutrients of meats stored in the freezer.
To further support health and wellbeing, Panasonic encourages home cooking for its consumers by introducing new kitchen appliances line up such as Kitchen Machine, Bread Maker and more appliances that enrich cooking experience.
Electrolux Says Profit Hit By Supply Chain Disruptions
Swedish home appliances maker Electrolux AB’s net profit plunged 81% to 257 million Swedish kronor ($25 million) in the second quarter of the year, due to supply chain disruptions, Barrons reported citing AFP. Supply chain disruptions adversely affected the availability of essential components and production schedules, and also increased the costs of airfreight for the companyThe irregular deliveries of multiple components, mainly electronics, continued to significantly impact our volumes, cause severe production inefficiencies and increase costs for airfreight,” he said.
By contrast, second-quarter sales increased by 11 percent to 33.7 billion kronor, as higher selling prices offset the supply crunch.
Electrolux said it was still unable to meet demand, especially in its laundry and premium cooking segments.
“We continue to collaborate closely with our suppliers to mitigate these supply chain constraints and expect sequential improvements from mid-2022,” Samuelson said, noting the risk of further disruptions still loomed.
Sub-zero investment
Sub-Zero Group intends to invest more than $140 million to build a 400,000-square-foot plant in Cedar Rapids. The factory would create 192 jobs; 127 of those positions would be paid at or above the qualifying wage of $24.20 per hour.
Sub-Zero, based in Madison, Wisconsin, makes its flagship brand of refrigeration products as well as Wolf cooking appliances and Cove dishwashers. The Cedar Rapids plant would bolster the company’s overall manufacturing capacity; it currently operates factories in Fitchburg, Wisconsin, and Goodyear, Arizona.
State officials approved an incentive package worth $3.7 million to support the project
Electrolux Professional sells Russia business to local management
Sweden’s Electrolux Professional is selling its business in Russia to its local management and leaving the country, the company said on Monday.
“As a result of the continued war and sanctions, we foresee that we will not be able to sell and service products in Russia in the medium to long term,” the maker of appliances for professional use said in a statement.
“Following the assessment that business continuity in Russia, in the current situation, is not feasible, Electrolux Professional is to cease its operations in the country,”
Samsung and LG Slowdown
Samsung Electronics and LG Electronics are set to announce falling sales of home appliances and TVs in the second quarter as people have been spending more time outside rather than staying home,
“Demand for home appliances and TVs continued to slow down in the second quarter, as the global economic downturn and inflation intensified. This is expected to have adversely affected the profitability of product makers,” an official from a local home appliance company said on condition of anonymity.
“Home appliance makers focused on selling premium models and new models during the second quarter due to the expected drop in demand in the market. They also have started to enhance profitability by expanding the global market for their products,” another industry official said, asking not to be named.
The two home appliance makers will announce their preliminary earnings for the April-June period on July 7. According to the consensus among local brokerage houses, Samsung is expected to announce sales of 77.22 trillion won ($59.46 billion) and 14.79 trillion won in operating profit in the second quarter, up 21 percent and 18 percent, respectively, from a year ago.
Though the figures have improved from the same period in 2021, the numbers are lower than the forecast made in May. At that time, the consensus showed Samsung would post 78.68 trillion won in sales and 15.29 trillion won in operating profit.
“Samsung Electronics’ second-quarter earnings are expected to fall below expectations due to a decrease in demand for set businesses such as smartphones, TVs and home appliances,” Kim Dong-won, a researcher at KB Securities, said.
“Considering macro-economic uncertainties such as inflation, disruption of parts supply chains and the Russia issue, it is unlikely that demand for smartphones and PCs will be offset by demand for memory in servers and displays for iPhones alone,” the researcher added.
Market consensus also showed that LG Electronics, where home appliances account for a larger portion of sales than Samsung, is expected to post 19.39 trillion won in sales and 866.4 billion won in operating profit. The latter figure is a sharp drop from the second quarter of 2021 when it posted 1.11 trillion won in operating profit.
The KB Securities researcher said that LG’s second-quarter operating profit is expected to decrease, but the company’s Vehicle component Solutions Division will offset the falling earnings as the division, which mainly sells infotainment systems for vehicles, is expected to shift a surplus.
Haier success in Europe
Haier Europe saw a 20% growth and achieved £2.43 billion in revenue in 2021
AO under pressure
AO likely to face pressure of clarifying cashflow position
It faced a cut in credit cover by Atradius, the credit insurance division of Grupo Catalana Occidente
AO recently issued its third profit warning in three months at the end of April.
Glen Dimplex turnover increase
Revenues at Glen Dimplex electrical group have started to rebound quickly, according to accounts for one of the main cogs in the group.
Dublin-registered Glen Dimplex Europe Holdings, which captures the majority of the group’s global business, recorded a 17 per cent rise in turnover last year to more than €930 million,
The accounts, which cover the 12 months to the end of last September, show a return to profit after losses incurred at the height of the pandemic.
The unit recorded an operating profit of €16.3 million, compared with an operating loss of €10.2 million the prior year. After adjustments, the profit before tax was €11 million, compared with a loss of €42.6 million in 2020.
A note by the directors, who include chief executive Fergal Leamy, attributes the financial turnaround to Glen Dimplex reaping the fruits of a €180 million investment and restructuring programme.
The company is retooling its operations to seek growth primarily in the heating and ventilation and flame divisions. The flame division includes decorative fake fires that sit in hearths.
The directors highlighted that they expect growth in future to be driven by Government grants for less environmentally damaging heating systems. It said last year’s growth had continued into 2022.
Glen Dimplex Europe Holdings invested more than €29 million in research and development last year, the accounts suggest. It employed close to 4,400 staff. Covid wage subsidies received fell to €1 million from €8 million.
The management team at the business shared a pay pot of €7.4 million, up from €6.6 million. A Naughton family-controlled entity in the Isle of Man that owns the business was paid dividends of €2.45 million, while €2.5 million was paid to the Naughton Foundation, a charity established by the company’s founder, industrialist Martin Naughton.
Glen Dimplex, which also operates a consumer appliances division, recently agreed to sell its Morphy Richards home appliances brand to a Chinese company, in a deal believed to be worth between €175 million and €200 million
Elica to purchase Air Force
Elica SpA, leader of the Group that produces cooker hoods and extractor hobs, has entered into an agreement which provides for the purchase from Urbano Urbani, minority shareholder of the subsidiary Air Force SpA, of 40% of the latter’s share capital. This operation will allow Elica to take over Air Force SpA to 100% Air Force is a company of the Group that manufactures high quality cooker hoods and hobs, characterized by a high level of customization and uniqueness. The offer is aimed at a specific market niche and is able to satisfy the customer’s needs for product customization, moving away from the mass market.
Air Force SpA was established in 1997, its mission has always been the continuous innovation of extractor hoods and induction hobs. All through study and innovation, accompanied by the desire to launch a style, to propose a Made in Italy even more focused and advanced on the selection processes, where high quality is expressed with functionality and reliability, design and innovation.
Experience, design, flexibility and innovation made in Fabriano are the characteristics that fit perfectly into the development and growth of the Elica Group.
In numbers, the Air Force achieved a turnover of approximately 31.0 million euros in 2021 and an Ebitda of approximately 1.6 million euros with a cash balance of 5.4 million euros.
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