Category Archives: Financial

Electrolux slides on US woes and Chinese competition

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Electrolux, the world’s second-biggest appliances maker, has reported lower than expected third-quarter adjusted operating profit, sending its shares down 10%.

The Swedish company has begun delivering quarterly profit again as its North American arm has picked up after years of holding back group earnings owing to high costs, competition from market leader Whirlpool and underperformance at its US factories.

However, Electrolux is also contending with competition from lower-priced rivals, such as China’s Midea, which have proved increasingly attractive to consumers squeezed by high interest rates.

“While market conditions remained challenging in Europe and North America, we continued to make progress on our cost initiatives,” said CEO Jonas Samuelson, who is due to retire at the end of the year.

“The market in Europe continued to be predominantly replacement driven and was relatively stable, with high promotional intensity,” he said.

The company reiterated that weak price expectations and other factors are expected to have a negative impact on the fourth quarter.

Shares in Electrolux fell 10% in early trade, taking their decline this year to 14%.

Operating profit excluding non-recurring items rose to 717 million crowns ($67.8m) from 314 million crowns a year earlier, against an 855 million crown mean forecast in an LSEG poll of analysts of 855 million.

Whirlpool Gains With Higher Prices Making Up for Tepid Sales

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Whirlpool Corp., the owner of Maytag, rose in early trading Thursday after reporting better than expected earnings, and reaffirming its full-year sales forecast.The results show that things aren’t getting worse for Whirlpool, which also owns the KitchenAid brand. While net sales trailed projections, the company said it expects consumer sentiment to improve once the US presidential election is over.

Net sales were $3.99 billion in the three months ended Sept. 30, Whirlpool reported Wednesday. That compares with an estimate for $4.09 billion, according to the average of projections from Bloomberg. Adjusted earnings per share, however, beat expectations, helped by higher prices during promotional periods

Net sales will be about $16.9 billion this year, the company said. Whirlpool also reaffirmed its guidance for adjusted earnings per share.

Whirlpool shares rose 6.8% as of 9:36 a.m. in New York Thursday. The stock had dropped 18% this year through Wednesday’s close, as the S&P 500 Index gained more than 21%.

LG Electronics Reports Record Sales

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LG Electronics announced its confirmed results for the third quarter on Oct. 24, revealing a complex financial landscape marked by record sales but a significant drop in operating profit. The company reported consolidated sales of 22.1764 trillion won, a 10.7% increase compared to the same period last year and a 2.2% rise from the previous quarter. However, operating profit fell by 20.9% year-on-year to 751.9 billion won, primarily due to increased logistics and marketing costsThe Home Appliance & Air Solution (H&A) Business Division recorded sales of 8.3376 trillion won and an operating profit of 527.2

Groupe SEB financial update

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Groupe SEB releases its 2024 nine-month sales and financial data Solid Growth in Q3 on a demanding comparison base, full-year outlook confirmed: ✅Nine-month sales: €5,725m, +5.6% LFL* and +3.5% reported ✅ Third-quarter sales: €1,985m, +4.0% LFL and +3.4% reported ✅Nine-month Operating Result from Activity: €444m, +14% ✅Nine-month operating margin: 7.8% vs 7.0% in 2023 ✅Outlook for 2024 confirmed: – Organic sales growth of around 5% – Operating margin close to 10% *On a like-for-like basis (organic) 📣“Sales momentum was strong in the first nine months of the year, and we continue to generate robust organic growth in the third quarter. Small Domestic Equipment markets have remained buoyant in recent months. In this context, the Group’s sales growth accelerated and was bolstered by the rollout of innovations, in particular in Western Europe and North America. Sales in Professional decreased compared to an exceptional third quarter last year, reflecting the phasing of large deals rollout. The core business excluding large deals, however, has seen a noteworthy increase over the quarter. Our Operating Result from Activity rose by 14% over the nine-month period.

Midea eyes bigger global market share

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Midea Group, the world’s largest maker of white goods by sales, is eyeing significant global expansion of its sales network to encompass 40 countries by 2025.

Fresh off raising US$4.6 billion in Hong Kong’s largest initial public offering (IPO) in more than 3 years the Foshan-headquartered company is looking to markets like Saudi Arabia, Brazil and Africa as part of a focus on burgeoning economies with substantial growth potential, according to Lewis Fu, the company’s president of international business.

The company, which gets almost half of its revenue from overseas markets, relies on outside retail operators in some regions. But it plans to expand its global operations and do a “better job” with its own retail network, particularly in emerging markets where the “growth potential is large”.

“Currently, we have our own sales subsidiaries and organisations in about 30 countries worldwide,” Fu said during a press tour on Thursday. “In the future, we will expand to more than 40.Midea has about 44 manufacturing bases worldwide, half of which are outside China, with more manufacturing facilities “under way in the coming years”, Fu said.

Aga Rangemaster drop in turnover

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Turnover fell by 20% at cooker and cookware manufacturer Aga Rangemaster last year, newly-filed accounts have revealed – as the company cut its staff by over 21%.

The firm, which has its head office in Long Eaton, Derbyshire, and sites in Leamington Spa and Telford, saw revenues fall from £144.6m in 2022 to £115.5m for the 12 months to December 2023.

Aga Rangemaster said the disappointing performance was down to a “challenging” domestic market – although exports to the US increased by over 22%

Amica new strategy

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Amica group announced a new “Back to Profitability” strategy. Its goal is to ensure the sustainable growth of Amica Group in key European markets and to focus on the heating equipment segment. Our assumptions? Increase sales by 7% annually by 2030, EBITDA at 5% in 2027 and 7% from 2030, increase RONA (return on net assets) to 14% in 2027 and exceed 17% from 2030. Additionally, we strive for stable dividend payments to shareholders. Amica have used the past 10 years to expand in Western Europe, invest in production capacity and new technologies, optimize our operations and strengthen our financial base. External factors, such as the pandemic turmoil, the war in Ukraine and our exit from the Russian market, which means a loss of sales of approximately 300,000 pieces of heating equipment per year, have stood in the way of full implementation of the HIT2023 strategy goals. The new “Back to Profitability” strategy, which we are announcing during the cyclical downturn in the household appliances industry, focuses on ensuring lasting profitability for the Amica Group and using the potential of the production center in Wronki, Greater Poland. We intend to make good use of the opportunities we see in the coming years – emphasizes Jacek Rutkowski, President of the Management Board of Amica SA mission is to offer durable and reliable household appliances with the highest quality of service to make everyday life easier for consumers, while respecting the local traditions and heritage of our brands (#Amica, #Fagor, #Gram, #Hansa, #CDA). In turn, our vision is to become the most recommended brand of heating equipment on key markets in Europe.

Haier Successfully Completes Acquisition of Carrier Commercial Refrigeration

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Haier Smart Home Co., Ltd. , a global leader in consumer electronics and home appliances, announced the successful completion of its acquisition of Carrier Commercial Refrigeration from Carrier Global Corporation  for an enterprise value of approximately $775 million. The technologies related to commercial refrigeration that the company owns or is licensed to use, including carbon dioxide technology, will contribute to environmental improvements, promote green transformation in enterprises, and benefit society. This acquisition further enriches Haier Smart Home’s diverse product portfolio and signifies an enhanced strategic positioning in the global commercial refrigeration market.

Franke Group acquires the Wesco and Berbel brands

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Franke Group has entered into an agreement to acquire 100% of the Wesco Group, a manufacturer of high-end kitchen extractor hoods and ventilation systems (Wesco and Berbel brands). The group will become part of Franke Home Solutions, a division of the Franke Group, and will strengthen its positions in the Swiss and German markets Wesco Group is a specialist in kitchen extractor hoods and air filtration in homes, schools and offices in Switzerland. It also includes the German subsidiary berbel Abluftechnik GmbH, the market leader in Germany for extractor hoods and extractors. In the 2022/2023 financial year, Wesco generated net sales of CHF 97 million and employed a total of 280 people.

Beko Egypt White goods plant built at a total investment of $110m

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Beko has placed industrial localisation at the forefront of its strategy with its first manufacturing plant in the 10th of Ramadan industrial city.

The facility, covering 114,000 square metres, will heavily rely on local suppliers, with the local content expected to reach 50-60 percent, said Umit Günel, General Manager of Beko Egypt.

“Beko Egypt’s local manufacturing drive aims to make Egypt a central hub for exporting home appliances to Europe, the Middle East, and Africa, with 60 percent of production allocated for export,” he told Zawya Projects, adding that the plant is projected to generate $250 million annually in export revenues.

The plant was officially inaugurated last week.

He emphasised the company’s commitment to boosting cooperation with local manufacturers of plastics, cables, and metals to deepen localisation, adding that within the first six months of operations, Beko Egypt increased its production capacity from 1 million to 1.5 million units of ovens and refrigerators annually and expanded its supplier network.

The plant, built with an investment exceeding $110 million, will focus on producing eco-friendly home appliances  designed to save water and energy in line with Egypt’s green economy goals. It is also expected to provide over 2,000 jobs for Egyptian youth, bolstering the national economy.

Günel said the facility will run on renewable energy, supporting Beko’s ‘Zero Waste’ policy. Any production waste will be recycled, with metals and other components re-evaluated for quality.

“Beko’s dishwashers, for example, will incorporate plastic parts made from recycled materials, reflecting the company’s commitment to sustainability,” he said.

The Beko Egypt official noted that, despite tough market competition, the company is ready to expand further, continuously assessing new possibilities to introduce additional products. The dishwashing segment has received fast-track approval from Egyptian authorities.

Beko, which ranks as the second-largest household appliance brands in the region and among the top ten worldwide, currently produces 65 million units annually across the globe. The company’s global operations span 58 countries with 46 production facilities in 14 countries