Electrolux Will Close Spain Factory Oct 26, 2009

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Electrolux said that, although its 3Q 2009 profit increased 93%, it expects further decline in the European appliance market and it plans to close its plant in Alcalà, Spain.

3Q net profit was 1.6 billion kronor (approx. US$236 million). Revenue for the 3Q period increased 5%.

Hans Straberg, chief executive said that, "In North America, after a very successful launch of the Electrolux brand in the premium appliance segment, we have re-launched the Frigidaire brand in the medium-price segment. And in Europe, we have successfully gained market shares in the profitable built-in segment, primarily by strengthening our position in the important German market. Another example is the new premium vacuum cleaner UltraOne, which has clearly contributed to the earnings improvement within our floor-care operations."

Yet, he added that "Market development continues to be weak, as expected. Even though we see things stabilizing in North America, the European market has not yet hit bottom."

Separately, Electrolux said it will discontinue production at a factory in Alcalà, Spain by 2011. The factory manufactures entry level washing machines for the Spanish, Portuguese, French, and UK markets and has 450 employees.

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