Arçelik, has warned that next year will be “very tough” for Europe’s home appliance market as persistently high energy prices and rising borrowing costs hit consumers.
Arçelik expected the European appliances market to shrink 5 per cent on a unit sales basis in 2024, said chief executive Hakan Bulgurlu. He added that the contraction could reach 10 per cent “if things go bad”.We’re predicting very, very low [economic] growth for Europe as a whole,” Bulgurlu said. He pointed to Germany as a particular weak spot, saying Europe’s economic powerhouse was “really slowing down”Arçelik’s revenue in Europe was steady at €787mn in the third quarter of this year compared with the same period in 2022.
Category Archives: Domestic appliance news,
Whirlpool Gains From Business Strength & Cost Cuts
Whirlpool Corporation has been benefiting from its focus on improving operational efficiency, strong consumer demand in Mexico and stabilized inventories. The company remains on track with its long-term targets, with profitable growth of 5-6% and ongoing EBIT margin expansion of 11%-12%.
Based in Benton Harbor, MI, Whirlpool currently carries a Zacks Rank #2 (Buy). It belongs to the Zacks Household Appliances industry, which comes under the ambit of the Zacks Consumer Discretionary sector.
Let’s delve into the factors that make investing in this home appliance manufacturer a smart choice at the moment.
Whirlpool remains well-positioned to benefit from the recovery in the U.S. homebuilding market, which is likely to boost its product demand going forward. Its focus on protecting its margins and productivity amid ongoing supply chain constraints and inflationary pressures bodes well.
For instance, it has implemented several cost-takeout actions, including curtailing structural and discretionary costs, capturing raw material deflation opportunities, effectively managing working capital and syncing supply chain and labor levels with demand.
Whirlpool launched a cost-takeout program worth $500 million that is likely to reduce fixed and variable costs in 2023. It has been actively pursuing its cost management actions and expects $800-$900 million related to gains from these measures and eased raw material inflation.
In April 2022, Whirlpool concluded the strategic review of Europe, the Middle East and Africa operations. The company’s major domestic appliance business in Europe will form a new entity with Arçelik. The deal is expected to close in the fourth quarter of 2023, subject to certain regulatory approvals. The new company is likely to generate more than €6 billion in annual sales and more than €200 million in cost synergies. While Arçelik will own 75% of the new entity, Whirlpool will retain the remaining stake.
The company also remains committed to rewarding its shareholders through dividend payouts and share buyback programs. In the first six months of 2023, the company returned $193 million in cash to shareholders as dividends. At the end of second-quarter 2023, it had $2.6 billion remaining as share repurchase authorization.However, the company has been experiencing a tough operating environment and tepid global demand amid high inflation. In the second quarter, the company’s net sales fell 6% to $4,792 million from the year-ago quarter. For 2023, Whirlpool expects net sales to be $19.4 billion, suggesting a 1-2% decline from the prior-year figure.
LG WashTower in Paris
To raise awareness for the LG WashTower™, which has been garnering increased popularity among European consumers, LG France set out to win the hearts of French consumers with a unique experience zone. On October 28, the company unveiled a giant structure in the shape of LG WashTower at Pompidou Centre in Paris, catching the eyes of Parisians and tourists alike. For one day, the general public was invited to discover the new design and advantages of the all-in-one laundry solution inside the 8-meter-high column created with realistic proportions and design.
Located in Beaubourg, one of the capital’s oldest districts and the beating heart of Paris since Medieval times, the Pompidou Centre is home to Europe’s largest collection of modern and contemporary art and an important cultural center for Parisians as well as tourists. With daily traffic in the area estimated at around 50,000 visitors a day, it was the perfect location to promote the new LG WashTower.
Upon entry, visitors were met by a model dressing room installed with an actual LG WashTower, showing consumers how the product can flawlessly blend in with home spaces while providing more information about the conveniences the product can provide. And, to provide a source of entertainment, the experience zone featured a game event, offering visitors an opportunity to win LG WashTower figurines created in partnership with famous German toy brand Playmobil.
LG also promoted Busan’s bid to host the World EXPO 2030, setting up banners in the area as part of efforts to highlight the beautiful port city as the best candidate to host the global event.
First introduced in France in July last year, the LG WashTower saw solid sales growth of 150 percent after the launch of its compact version in June this year. The new WashTower Compact is smaller than the 2019 version by 100 millimeters in width, 170 millimeters in depth and 235 millimeters in height, requiring less installation space than a stackable or side-by-side washer and dryer pair of the same laundry capacity. Thanks to its compact size, the LG WashTower has been highly praised by European consumers as a space-efficient solution that delivers greater convenience.
The company plans to further promote the WashTower globally, focusing on its sleek and minimal design as well as the exceptional performance and convenience it provides.
LG Neochef
LG Electronics presented the new microwave oven from the LG Neochef line (model MH6535GISA) with an ash blonde color. At a technological level, the Smart Inverter Technology keeps the microwave emission constant, guaranteeing a stable temperature and consequently homogeneous cooking. Furthermore, this technology defrosts food evenly and quickly. The oven has numerous programs such as grill cooking and the fermentation function which allows user to prepare yogurt. Finally, the new model, which offers 25 liters of capacity, is equipped with the LG Infrared Heating System which uses infrared light to obtain a higher temperature in less time
Home appliance giant Midea’s revenue up 7.7 percent in January-September
Midea Group saw its revenue rise 7.67 percent year on year in the first three quarters of 2023,The company realized a total net profit of 27.7 billion yuan during the period, up 13.27 percent year on year, according to the report.
In the third quarter alone, Midea Group achieved a revenue of 94.1 billion yuan, a year-on-year increase of 7.32 percent, and a net profit of 9.5 billion yuan, a year-on-year increase of 11.93 percent.
To date, the Fortune 500 company has 31 research and development centers and 40 major production bases worldwide.
Beko Egypt factory update
Beko Egypt, a subsidiary of Turkish white goods conglomerate Arçelik, will open its first factory in Egypt early 2024 instead of the fourth quarter of this year as previously announced.
The factory, located in the industrial city in the 10th of Ramadan area, spans an area of 114,000 square metres, and is being developed at total investment exceeding $100 million, according to the company’s press statement.
Xiaomi Mijia thin washing machine
Xiaomi has revealed the new Mijia Ultra-Thin Washing and Drying Machine 10kg. The device is slimmer than other models from the brand, ensuring it sits flush with other units, with a direct drive motor to reduce vibrations. Smart features include automatic detergent dispensing, voice commands and app controls.The Xiaomi Mijia Ultra-Thin Washing and Drying Machine 10kg is now available to pre-order in China. The product has been designed to maximise the washing load while ensuring it sits flush with other units in your kitchen or utility room. As its name suggests, the gadget can wash loads of up to 10kg (~22.0 lbs), while drying is limited to 7kg (~15.4 lbs).The new washer dryer has 26 cycles, up to 1,200 rpm spin and a 15-minute quick wash setting. Intelligent features include self-cleaning, automatic detergent dispensing based on the load and intelligent drying, finishing the cycle based on detected water levels. You can control the device using a built-in color touch panel, via the Xiaomi app or voice commands thanks to HyperOS Connect.
A direct drive motor and four shock absorbers help to reduce vibration and associated noise, and the device has been rated as Level 1 energy efficient in China. You can now pre-order the Xiaomi Mijia Ultra-Thin Washing and Drying Machine 10kg in China
Haier launch in Turkey
Haier, the world’s number 1 white goods brand, to consumers in Turkey. They recently opened the Haier area located in Mediamarkt Tech Arena
Groupe SEB Results
Groupe SEB maintains its momentum for a return to historical profitability levels. Consumer business delivered solid organic growth in sales, on par with that of the second quarter, driven by innovation initiatives across all our regions. The Professional business posts very good results thanks to record sales in coffee. The Group enjoyed a number of commercial successes in 2023 with, in particular, the roll-out of major contracts, as well as a solid core business. Hence, they confirm the Group objectives for the full year, respectively mid-single digit organic revenue growth and an increase in Operating Result from Activity of at least 10%.” Stanislas de Gramont , Chief Executive Officer of Groupe
Electrolux cost reduction
The Electrolux Group continues its cost reduction project in order to improve margins. The goal is to achieve savings of 10-11 billion Swedish crowns (840-920 million euros) in 2024 compared to 2022. In the past the savings target was 7 billion crowns.
Among the measures announced when sharing Q3 results, the group will be reorganized into three regional divisions and two global product lines reporting to the CEO to reduce top management levels.The company posted a third-quarter net profit of SEK123 million from a loss of SEK605 million,Sales fell 5.2% to SEK33.43 billion, versus the SEK34.1 billion
