At its recent Board of Directors meeting, Electrolux AB appointed Marcus Wallenberg Chairman of the Board of Directors, re-elected Peggy Bruzelius as Deputy Chairman of the Board, and elected Hasse Johansson as new Board member.
Separately, the company said its operating income for the first quarter of 2008 is expected to be negative, due to weak market trends in North America and Europe and negative non-recurring items. Though the economic condition continues to be uncertain, Electrolux expects its operating income for fiscal 2008 to be in line with the previous year.
However, the company expects positive effects from its major restructuring program and from cost-savings in purchasing, administration and production. Also, an increase in margins through product launches in Europe and a slight market growth are expected to improve results.
"As a consequence of the initially weak trend of the markets in North America and Europe as well as a number of nonrecurring items, we expect the operating income for the first quarter will be somewhat negative,'' CEO Hans Straaberg said in a statement.
Straaberg said that new high-end products introduced in the U.S. will not turn a profit before 2009. "The issue of whether the U.S. economy is in recession or not is a frequent topic of debate,'' he said. "The appliance industry has been in a recession since mid-2006.''
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