Electrolux Increases Estimate of Full-Year U.S. Appliance Demand
Oct 31, 2013
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Swedish-based appliance giant Electrolux reported third quarter 2013 net sales of SEK 27,258 million (approx. US$4,213 million), up slightly from SEK 27,171 million in the third quarter of 2012. Income in 3Q 2013 was SEK 656 million (approx. $101 million), up from 3Q 2012's SEK 923 million.
Organic sales growth was 4.9%; currencies had a negative impact of 4.6%.
North America continued to show strong organic growth of 8% and reached an operating margin of 7% as a result of increased volumes and improved mix.
Continued weak markets and lower volumes hurt Europe sales-- Major Appliances Europe, Middle East and Africa was the only Electrolux business region that did not report organic sales growth in 3Q 20132.
Negative currencies impacts amounted to SEK 519 million, affecting earnings in Latin America, Asia/Pacific, and Europe.
The company said it initiated cost-reduction measures to reduce annual costs by SEK 1.8 billion by improving its manufacturing footprint and reducing costs, mainly within its Major Appliances Europe business.
"Electrolux North America continues to deliver strong sales and earnings growth, while Europe continues to suffer from weak demand," said Electrolux President and CEO Keith McLoughlin. He said emerging markets continued showing strong top line growth.
"North America presented another quarter of strong earnings driven by volume growth in core appliances," McLoughlin said. "Organic sales growth amounted to 8% supported by favorable market development, new distribution channels, and a positive product mix. The housing market recovery continues to stimulate appliance demand and we are therefore raising our estimate for demand in the U.S. to increase by 79% for the full year of 2013."
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