Electrolux Has Best First Quarter Results Ever
Apr 27, 2010
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Electrolux head Hans Stråberg said the first quarter of 2010 was the company's "best first-quarter result in appliances ever."
Stockholm-based Electrolux said the strong results were due in part to a "solid recovery" in the U.S. appliance market during the quarter. Other beneficial factors included significant margin improvements in Asia/Pacific and Latin America, increased efficiency in operations, and changes in exchange rates. Lower costs for raw materials contributed to the improvement in income but costs for raw materials were still higher than in 4Q 2009.
Electrolux's net sales in 1Q 2010 were SEK 25,133 million (approx. US$3,430 million), compared to SEK 25,818 million (approx. US$3,524 million) in 1Q 2009. Income for the period was SEK 911 million (approx. US$125 million), compared to a loss of SEK 346 million (approx. US$47 million) in 1Q 2009.
Electrolux reported net sales increased by 4.1% in comparable currencies, due to higher sales volumes.
"Demand in our most important markets has recovered somewhat more quickly than we anticipated," Stråberg said. "This is primarily true of the U.S. market, which showed strong growth in March. For the whole of Western Europe, we note a certain increased demand for the first time after ten quarters of decreases. The Brazilian market continues to grow, even though previously implemented tax subsidies were discontinued in the quarter. A steady improvement in demand is good news for Electrolux, because we can quickly adapt production, at the same time as we are launching new, innovative products."
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