Hans Stråberg, president and CEO of Electrolux, the world's second largest producer of major home appliances, said on July 19, 2010, that the company is "On track and can today present a margin of 6.5% for the latest 12-month period."
Stråberg said all business areas showed better profitability, the company is selling more advanced products, and it is continuing to improve its position in the premium segment. "Cash flow continues to be strong, which has further strengthened our balance sheet," Stråberg said.
"We are implementing our strategy, based on innovative products, a strong Electrolux brand and low production costs," he added. "In North America, we have improved our product mix due to the fact that we have successfully increased sales and gained market shares under our own strong Electrolux and Frigidaire brands. I am especially satisfied with the performance in North America considering the fact that we had extra costs amounting to about SEK 200m in the quarter related to the re-launch of Frigidaire and the consolidation of the Group's North American headquarters to Charlotte."
Stråberg gave a nod to the U.S. federal government, saying the $300 million rebates for energy efficient appliances helped achieve strong growth, particularly in the month of April.
"I think there is a learning (opportunity) for other countries on how to reduce energy-consumption in an efficient way," Stråberg said. "I also believe we will see a continued growth in North America in the coming years, as many American consumers need to replace their old appliances, which are beginning to reach the end of their life cycles."
In Europe, Electrolux improved its product mix and continued selling to the important built-in product segment. New product launches will be supported by increased marketing investments in Europe during the remainder of 2010.
"The operations in Latin America, Asia Pacific, and for Professional Products succeeded in nearly doubling their earnings compared to the second quarter of 2009," Stråberg said. "Asia Pacific showed its best result ever, and margin increased to 10%. In spite of a very tough period, Professional Products reached an operating margin of 12%. This is also a record."
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