CEO comment
Demand for household appliances (“Industry shipment”) is mainly expected to grow about 3% during 2010, which is the result of Areas with good or moderate growth rates (Russia, Ukraine, Western Europe) and Areas with steady growth rates (UK) and Areas with still negative growth rates (the rest of countries of Eastern Europe).
Prices were broadly stable during the first quarter, but came under widespread pressure from the second quarter, particularly emphasized in France, Germany, Eastern Europe countries and Russia. It is possible that the pressures will rise in the second half year.
At constant exchange rates and mix, product cost should continue to fall thanks to the efficiencies realized from both the manufacturing and the purchases.
Higher savings will derive from Service activities.
The increased investment in advertising in support of the brands and commercial initiatives is confirmed for the coming period.
Holding exchange rates constant at June 2010 average levels and demand for household appliances (“Industry shipment”) growing about 3% yearly, the Group expects to achieve the following results for the full year 2010:
- an increase in total sales by 6%;
- an operating profit (EBIT) increased about 40%;
- net financial indebtedness of about 260 million euro.
Last update: 05/08/2010