Published on October 20th, 2014 | by The GC Team0
Electrolux posts 42% rise in profits
Electrolux today reported a 42% rise in third-quarter profit in spite of tough trading conditions in Europe. Net profit for the three months ended 30th September rose to SEK 933 million from SEK 655 million in the same period last year.
Net sales amounted to SEK 28.8 billion, up from SEK 27.3 billion a year ago. Operating income increased 29% to SEK 1.4 billion.
Electrolux President and CEO Keith McLoughlin (pictured) said operations in Europe continue to recover as a result of strong focus on cost savings, production efficiency and product portfolio management.
“Despite continued difficult market conditions, with a recent weakening of leading indicators and consumer confidence in a number of countries across both Western and Eastern Europe, we have managed to significantly improve results,” he commented. “During the third quarter we achieved an operating income of SEK 484 million, with an operating margin of 5.5%, compared with SEK 111 million in the same period of 2013.”
The results come as Electrolux prepares to integrate General Electric’s appliances business, which it agreed to buy in September this year for $3.3 billion. Commenting on the acquisition, McLoughlin said it was “an important strategic move which will give Electrolux a significant presence in one of the largest appliances markets.” The acquisition will significantly extend the company’s footprint in the US.
McLoughlin added: “We are excited about the upcoming transaction to acquire GE Appliances. However, we are continuing the work in all our business areas with the aim of further increasing growth and profitability. This work provides the foundation for reaching our vision of being the best appliance company in the world as measured by our customers, employees and shareholders.