STOCKHOLM: Sweden's Electrolux on Monday forecast growing demand for home appliances on both sides of the North Atlantic next year and said low raw material costs were expected to continue offering a tailwind in 2016.
Electrolux, which sells under brands such as Zanussi and Frigidaire as well as its own name, said it expected appliances demand to grow 2-3 percent next year in Western Europe and 2-4 percent in North America, its two biggest markets.
This compared with its forecast for the current year, last updated in October, which saw demand growth of 1-2 in Western Europe and 4-6 percent in North America.
"The favorable market development for Electrolux largest business areas Major Appliances EMEA and Major Appliances North America is expected to continue in 2016," the company said in a statement.
"Overall global demand for appliances is forecast to be slightly positive."
The company, battling for market leadership with U.S. Whirlpool and Korean LG Electronics, also said a weak underlying economy was seen continuing to weigh on sales volumes in Brazil in 2016.
It also said lower raw material costs and cost savings across the group were expected to have a positive full-year impact of about 550 million Swedish crowns ($63 million) and 750 million crowns respectively in 2016.
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