Electrolux Reports Strong Growth in North America
Apr 30, 2013
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Appliance maker Electrolux reported first quarter 2013 net sales of SEK 25,328 million (approx. US$3.872 billion), down 2% from SEK 25,875 million in the first quarter of 2012.
Income in 1Q 2013 was SEK 361 million (approx. $55.2 million), down 21% from SEK 499 million in 1Q 2012.
Operating income, excluding items affecting comparability, was SEK 720 million (approx. $110 million), down 21% from SEK 907 million in the 1Q 2012.
Electrolux reported organic growth of 3.8%, with currencies having a negative impact of -5.9%. Organic growth in 1Q 2012 was 3.5%.
With the market in a gradual recovery, "The Electrolux North American appliance business generated strong sales and earnings growth," said Electrolux President and CEO Keith McLoughlin. "Results in Latin America, Europe and Small Appliances were all impacted by negative currency movements. Operations in Latin America and Asia presented yet another quarter of solid sales growth. In Europe, however, all of our operations continued to suffer from weak consumer confidence, resulting in falling volumes and negative price and mix development."
Electrolux saw strong currency movement in 1Q 2013, which hurt Electrolux operating income by SEK 300 million. "Excluding the currency impact, operating income for the first quarter exceeded last year's results by 15%," McLoughlin said.
A third of the currency impact hit Latin American operations, but McLoughlin expects the Latin America negative currency effects, primarily in Brazil, to diminish throughout 2013, which will enable the company to benefit from its organic growth in the region. Latin American organic growth was more than 7% in 1Q 2013.
In North America, "We are seeing evidence that the recovery in the housing market is finally generating increased consumption of appliances," McLoughlin noted. "As such, our view is that demand for appliances could increase with 3-5% in 2013."
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