Category Archives: Financial

22 Millionth Refrigerator Rolled Off The Production Line At Arcelik Hitachi Home Appliances’ Thailand Factory,

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Hitachi branded home appliances globally, Arcelik Hitachi Home Appliances announced that the company achieved a 22 million production milestone of refrigerators in Thailand and received ISO 50001:2018 certification for the energy performance of its management systems.

“Thailand has been one of the major manufacturing bases for Hitachi refrigerators for over 40 years, a centre for domestic sales and exporting to than 65 countries around the world. In 2022, another proud milestone has been achieved, as the 22 millionth refrigerator rolled off the production line at Kabinburi factory in Prachinburi Province.” said Zafer Ustuner, Arcelik Hitachi Home Appliances CEO.

He added: “Backed by Arcelik’s global manufacturing power and Hitachi’s quality heritage, we have a Research and Development (R&D) team, who exchange views and design perspectives as well as enhance innovative dynamics and creativity, with the aim of developing an excellent product that truly understands every customer’s lifestyle.”

In 2022, it is expected that refrigerators in the premium segment, both the Side by Side and Multi door versions, have continuous high growth potential, as consumers around the world have confidence and trust in the quality of the Hitachi brand.

Electrolux cost reduction program

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Electrolux is initiating a cost reduction program on the back of weaker-than-expected market demand and weak earnings in the third quarter. The cost measures are expected to result in a material positive earnings contribution in 2023. In combination with supply chain imbalances resulting in significant production inefficiencies and increased costs, the third quarter earnings for the Group are expected to decline significantly compared to the second quarter 2022 also excluding the one-time cost to exit the Russia market. This has been driven mainly by Europe and North America. Business Area North America is expected to report an operating loss in the third quarter exceeding the loss in the second quarter.

Since market demand for 2023 is expected to continue to be weak in both regions, the Board of Electrolux has decided to initiate a Group-wide cost reduction program addressing both variable and structural costs. The program, which starts immediately, will focus on reducing variable costs, with special attention to eliminating cost inefficiencies in the company supply chain and production. The structural cost reductions will primarily take place in Europe and North America and include prioritization and efficiency measures leveraging recent organizational changes. The measures include increasing productivity in operations as well as optimizing the R&D portfolio, administration, sales and marketing activities.

In business area North America, the strategy to strengthen and broaden Electrolux product offering with consumer experience innovations remains. However, the production transformation with two new facilities and several new product platforms, in combination with the particularly challenging supply chain conditions in the region, require additional measures to return to stability and profitability. A turnaround program will therefore be conducted under the leadership of Ricardo Cons, who has been appointed new Head of Business Area North America. Ricardo Cons has successfully led the transformation of the Electrolux business in Latin America over the last six years. He succeeds Nolan Pike, who takes up a new position continuing to report to Anna Ohlsson-Leijon. A new leader of Electrolux Latin America is anticipated to be appointed shortly.

Largest acquisition in the history of Ariston Group :

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This is the largest acquisition in the history of Ariston Group : 703 million euros in cash and approximately 41.42 million shares for a value of approximately 300 million, for 100% of the capital of the German Centrotec Climate System. particular thanks to the brands Wolf, Brink, Pro-Klima and Ned Air, specialized in the supply of solutions for heating, ventilation and air treatment and solutions for the combined generation of heat and energy. “Wolf is a pioneer brand in the sector –

specializing in new generation heat pumps, while Blink, a Dutch brand, is active in the production of devices for domestic ventilation, a sector that is still a niche sector that concerns in particular thermally insulated buildings, those with zero emissions of the new generation that still need a change of air and that are moving from the use of fossil fuel to that of renewable energy.

Electrolux has warned of a steep drop in demand for its home appliances

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Sweden’s Electrolux on Monday announced plans to cut costs and warned its profit would drop as high inflation and low consumer confidence squeezed demand for its home appliances, while large investments in North America had yet to pay off.

Demand for appliances in Europe and the United States decreased at a significantly accelerated pace in the third quarter, with high retailer inventories and supply chain imbalances increasing costs and inefficiencies, Electrolux said.

Third quarter earnings for the group are expected to decline significantly compared to the second quarter 2022 also excluding the one-time cost to exit the Russia market,” the group said in a statement.

Midea hit by hackers

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REvil says they breached electronics giant Midea Group
Hackers claim to have stolen around 400 GB of data, including firmware source code and financial data. If confirmed, the hit would be REvil’s biggest in months.

Notorious hacker cartel REvil, labeled dead for several months, appears to have come back to life. The group says it has breached Midea Group, a major Chinese electrical appliance manufacturer.Midea Group employs over 150,000 people, owns over 200 subsidiaries, and boasts a revenue of over $53 billion. The company claims to be ranked 245 on the Global Fortune 500 list.

The company owns a majority stake in German company KUKA, the world’s largest robots and appliances producer.

Electrolux has decided to exit Russia

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Russia’s invasion of Ukraine and the following sanctions have made it impossible for Electrolux to continue its business in the country. The decision to divest the Russian business to local management is intended to enable a responsible and controlled exit. The divested company will continue to service appliances previously sold by Electrolux in Russia. Electrolux has no production in Russia and will not supply any appliances to the divested company.

The final operating income and cash flow effects will be determined by the balance sheet and exchange rate on the transaction day.

In 2021 Electrolux sales in Russia accounted for 4% of Business Area Europe sales and for 1.6% of Group sales.

GE record production

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Decatur’s GE Appliances plant had record production in 2020 and 2021 and is expecting another record year in 2022 after a 2020 expansion increased its capacity and allowed it to hire hundreds of new employees.

According to Leifje Dighton, executive director of the Decatur plant since March, the top-freezer refrigerator plant in 2020 completed a $125 million expansion which boosted production capacity by 25%.

“The investment came just in time as people were beginning to stay at home because of the pandemic and needed refrigerators and other appliances,” Dighton said. “We had a record production in 2020 with our second highest year in 2021. While the appliance industry is down this year, Decatur is on track to have another strong year with production at similar levels to 2020 and 2021.”The 2020 expansion included adding 40,000 square feet to the plant. Dighton said the extra space has been beneficial.The expansion investment allowed the plant to add 255 jobs. The plant now employs 1,500 people after adding a third shift.

“We are the largest single-site employer in this county,” Dighton said.

The expansion allowed the plant to produce two new models, the 19- and 22-cubic-foot refrigerators, in addition to the 16-, 17- and 18-cubic-foot models it already produced.We introduced a new refrigerant to our products, too, that from a greenhouse emissions standpoint was much better. We did it earlier than the industry was going to expect it,” Dighton said.

Wood said the Decatur plant sells in all 50 states and sells some products in Canada.

“We sell to national retailers such as Lowe’s, The Home Depot and Best Buy as well as independent appliance dealers, home builders and property management companies,” she said.

Dighton said GE Appliances, a 100-year-old manufacturer, is part of the largest appliance company in the world and GE appliances are in half of the homes in the U.S. In 2016, GE Appliances was acquired by the Haier Group

Midea financial report

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Midea released its financial report for the first half of 2022, showing semi-annual revenue growth from 5.0% to RMB183.7bn. Net profit growth was even faster than revenue, coming in at RMB 16bn with a YoY 6.6% increase.

“China-Based Supply for the World + Local Supply”

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Balanced in both ToB and ToC businesses, Midea Smart Home revenue during the first half of 2022 was RMB126.9bn. According to AVC, Midea home appliance products ranked 1st during the first half of 2022 in both domestic online and offline market shares among 7 household appliance categories, including air conditioners and microwave ovens.

Industrial Technology achieved a revenue of RMB12.1bn with 13.3% YoY growth, and Midea’s global market of residential AC compressors increased to 44%, representing the 1st worldwide. The unit sales of motors for residential ACs and laundry appliances accounted for 42% of the global figures.