Electrolux (Stockholm) reported first quarter 2014 net sales of SEK 25,629 million (approx. USD$3,919 million), up from SEK 25,328 million in the first quarter of 2013.
All business areas showed organic sales growth in 1Q 2014, giving the company overall organic sales growth of 4.5% in the quarter, while currencies had a negative impact of 3.3%. Operating income in 1Q 2014, excluding items affecting comparability, was SEK 749 million (approx. $114 million), from SEK 720 million in 1Q 2013. Income including items affecting comparability was SEK 431 million, from SEK 361 million in 1Q 2013.
Electrolux Major Appliances North America reported 1Q 2014 revenue in core appliances saw strong increases in March, on the heels of harsh weather in January and February. March’s increases were only enough to result in flat revenues for the quarter, year-over-year.
Electrolux launched new cooking appliances, dishwashers, and freezers under the Frigidaire and Electrolux brands. The company also announced in the first quarter that the shutdown of the cooking appliances plant in L’Assomption, Canada will have wrapped up by July 18, 2014. Manufacturing from the plant is moving to the new Electrolux North America plant in Memphis.
Electrolux Major Appliances Europe, Middle East and Africa
Europe saw an overall improvement in market demand for core appliances, resulting in a year-over-year improvement following a long period of decline in the markets: Western Europe grew 2% and Eastern Europe grew 4%. Strong recovery was seen in the appliance markets in Germany, Iberian countries (Spain and Portugal), Italy, and Poland. The Nordic regions and Benelux countries also saw improvement. Markets declined in the UK and Switzerland.
Electrolux Major Appliances Latin America saw Brazil’s market demand decline in 1Q 2014 compared to 1Q 2013, when market demand was boosted by a government incentive program for appliances. Other South American markets saw slight growth in 1Q 2014. The group saw strong organic growth in South America in 1Q 2014, mainly from higher prices and a better mix in most regions.
Electrolux Major Appliances Asia/Pacific estimated that 1Q 2014 market demand for major appliances in Southeast Asia and China grew year-over-year, while Australian market demand was somewhat down. Organic sales growth in 1Q 2014 arose from higher sales volumes and price increases. The company saw strong sales increases in China and Southeast Asia.
Operating income was down. Costs in the quarter included those from consolidating refrigeration production in a new plant in Rayong, Thailand from Australia. Other costs came from the continued launch of a line of products for the domestic market in China.
Electrolux Small Appliances saw increased market demand for vacuum cleaners in Europe in 1Q 2014. Demand in North America was estimated to have declined year-over-year.
Small Appliances organic growth in 1Q 2014 came from an improved product mix. European sales of vacuum cleaners in Europe, and of premium products, particularly within small domestic appliances and rechargeable vacuum cleaners, in Latin America and Asia/Pacific.
Electrolux said the significance of sales of small domestic appliances was increasing.
Electrolux Professional Products saw stable market demand for professional foodservice and professional laundry equipment in Europe. Western Europe accounts for about 60% of Professional Products sales. Demand in the United States and emerging markets continued to display growth compared to 1Q 2013.
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