Electrolux expects to see group margins of approximately 5 to 6 percent in a few years, at about the industry average, according to a Reuters report quoting Electrolux CEO Hans Straberg.
Straberg told the news agency that better margins will come from reduced production costs, resulting from the company's relocation of manufacturing to lower labor-cost countries, reduced purchasing costs, and increased sales resulting from investment in product development.
Straberg told the news agency that the biggest appliance markets, Europe and North America, will both grow in 2006 compared to 2005. He also indicated that the company has completed approximately two-thirds of its program to cut labor and personnel costs.
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