Highlights of the second quarter of 2018

  · Net sales amounted to SEK 31,354m
(30,948). Sales growth was 0.7% with
organic sales growth across most business
areas.

  · Operating income amounted to SEK 827m (1,919), corresponding to a
margin of
2.6% (6.2).

  · Operating income include costs of SEK 818m, whereof
SEK 564m relates to an
investigation by the French Competition Authority and
SEK 254m to an
unfavourable court ruling in France, both impacting Major
Appliances EMEA.
Excluding these non-recurring items, operating income amounted
to SEK 1,645m,
corresponding to a margin of 5.2% (6.2).

  · Higher prices, mix
improvements and cost savings contributed positively,
however operating income
was impacted by higher costs for raw materials and
currency headwinds.

  ·
Operating cash flow after investments amounted to SEK 1,805m (3,470).

  ·
Income for the period decreased to SEK 517m (1,291), and earnings per share
was
SEK 1.80 (4.49).

President and CEO Jonas Samuelson’s comment

We continue to
execute on our profitable growth strategy in a challeng­ing cost
environment.
Sales growth amounted to 0.7%, mainly driven by higher prices and
improved mix
in our core appliances. Despite significantly higher raw material
costs and
currency headwinds, we delivered earnings in the second quarter in
line with
our overall expecta­tion. Underlying operating income was SEK
1,645m,
corresponding to a margin of 5.2%. It is encouraging to see that our
focus on
innovative products delivering great consumer experiences result in
market share
gains in our core branded product categories across the Group. We
intensified
our cost actions in the quarter and reprioritized some activities
to mitigate
the increased currency headwind.

EMEA’s strong performance
continues, thanks to innovative products resulting in
market share gains.
Earnings for our operation in Asia/Pacific remained solid.
Professional
Products had a strong quarter with an oper­ating margin of over 14%
and a sales
growth of close to 7%. The business area has great momentum across
all
segments. Home Care & SDA is in a product transition phase and is investing
for
important launches within the growing cordless vacuum cleaner segment.

Our
operation in North America was impacted by significantly lower air
care
volumes, which, in combination with sharply increasing input costs,
explain the
drop in operating income compared to last year’s strong second
quarter. The
important steps we have taken in strengthening our core appliances
under the
Frigidaire brand are continuing to result in market share gains. The
Latin
American business area had a challenging quarter, including handling the
nation
-wide truck driver strike in Brazil. However, I am very pleased with the
teams’
focus on implementing price increases and cost measures to mitigate the
negative
impact from accelerating raw material costs and currency.

In addition
to the price increases already implemented, we have announced
further price
increases in key markets, primarily in North America and Latin
America. In
combination with cost reductions we are determined to mitigate the
increasing
headwinds from raw mate­rial costs and currency. We now estimate the
negative
year-over-year impact from raw materials to be approximately SEK 1.8 bn
in 2018
and we plan for cost inflation following the recently announced trade
actions
under Section 301 in the U.S..

Current industry trends indicate a slightly
softer market demand outlook for
North America, Latin America and Australia, to
a large extent driven by higher
market prices caused by higher input costs.

We
continue to take important steps in strengthening our product portfolio. I
am
excited about the important product launches we have in our pipeline for
the
second half of this year and continuing into 2019. This together with
our
ongoing reengineering programs in North America, Latin America and EMEA
are
important elements to achieve profitable growth.

Our focus on creating
best-in-class consumer experiences, raising prices in key
markets and cost
management will allow us to mitigate the headwinds we are
facing. Looking
ahead, I am confident that we are well positioned to execute on
our profitable
growth strategy.

Telephone conference 09.00 CET

A telephone conference is
held at 09.00 CET today, July 18. The conference will
be chaired by Jonas
Samuelson, President and CEO of Electrolux. Mr. Samuelson
will be accompanied
by
Anna Ohlsson-Leijon, CFO.

Details for participation by telephone are as
follows:

Participants in Sweden should call +46 8 505 564 74

Participants in
UK/Europe should call +44 203 364 5374

Participants in US should call +1 855
753 2230

Slide presentation for download:

www.electroluxgroup.com/ir

Link to
webcast:

www.electroluxgroup.com/q2-2018
For further information, please
contact:

Sophie Arnius, Head of Investor Relations +46 70 590 80 72

Merton
Kaplan, IR Manager, +46 (0)73 885 78 03


Arba Kokalari, Electrolux Press
Hotline, +46 8 657 65 07.

This is information that AB Electrolux is obliged to
make public pursuant to the
EU Market Abuse Regulation and the Securities
Markets Act. The information was
submitted for publication, through the agency
of the contact person set out
above, at 0800 CET on July 18, 2018.
Electrolux
shapes living for the better by reinventing taste, care and
wellbeing
experiences, making life more enjoyable and sustainable for millions
of people.
As a leading global appliance company, we place the consumer at the
heart of
everything we do. Through our brands, including Electrolux, AEG,
Anova,
Frigidaire, Westinghouse and Zanussi, we sell more than 60 million
household and
professional products in more than 150 markets every year. In
2017 Electrolux
had sales of SEK 122 billion and employed 56,000 people around
the world. For
more information go to www.electroluxgroup.com.