Electrolux reports rise in first quarter figures

The Swedish appliance maker Electrolux said Wednesday that its first quarter net profit jumped by 23 percent from the same period a year earlier owing to solid demand from emerging markets.

Electrolux CEO Keith McLoughlin is pleased with the past quarter’s results.

“It was a strong quarter where most things have developed the way that we had predicted,” said McLoughlin to news agency TT.

The group’s net profit climbed to 561 million kronor (63.1 million euros, $83.3 million), well above an average analyst forecast of 485.5 million that was compiled by Dow Jones Newswires.

Electrolux sales gained more than 10 percent meanwhile to 25.9 billion kronor, surpassing an analyst forecast of 24.9 billion kronor.

“Market demand for appliances in Electrolux mature markets declined in the first quarter year-over-year, while demand in emerging markets continued to grow,” the Swedish company noted.

Prices for raw materials are expected to rise this year, and Electrolux are raising their prices to compensate for the increasing costs.

In North America the company has increased its prices, a solution which has worked out well, and more hikes in prices are predicted.

“Europe is a little more challenging, especially if you look at what is happening in southern Europe where the demand has gone down significantly. The possibilities to raise prices at that point are very slim,” he said, adding that new product launches in Europe makes up for the drop in demand to some extent.

In North America sales went down during the first quarter, but McLoughlin thinks that it will turn upward during the second quarter, while expecting a small drop in Europe for the same period.

”We think that the western markets may have reached rock bottom and that the trend will be more positive from now on,” he said.

The first quarter was also strong in Latin America and Asia is also doing well, although sales were down somewhat in China.

Member comments

Become a Member to leave a comment.Or login here.