China’s exports shrank last month, the first such decline since mid-2020, customs authorities said yesterday, as a domestic slowdown and the threat of global recession hit international trade
The value of home appliance exports fell the most of any product group in the first 10 months of the year, down 11.5 percent from a year earlier, according to a breakdown provided by customs.
Exports of furniture, lighting equipment and medical devices also dropped during the period.
Electrolux, with a newly-expanded plant in Anderson County, announced thousands of layoffs that will affect workers across the globe.
Last week the company said it is implementing a cost reduction and restructuring program to increase earnings.
Electrolux says between 3,500 and 4,000 positions companywide will be impacted by the program in the last quarter of 2022.
“Regarding business area North America, I am obviously very disappointed with our performance,” said CEO Jonas Samuelson. “The production transformation with the two new facilities Anderson and Springfield including several new product platforms, in combination with the particularly challenging supply chain conditions, require additional measures to return to stability and profitability.”
Samuelson said stabilizing and improving operational planning in Anderson is part of the North American turnaround plan.
Omnicom Media Group India has been appointed to manage the Integrated Media mandate for Electrolux – a Global leader in home appliances. The directive will involve creating end-to-end media solutions for the business and accelerating its growth journey in the market.
With its agile, client-first approach that helps businesses thrive today and into the future, OMG was the natural choice for Electrolux as they look to strengthen their footprint in the country. Leveraging the agency’s analytics and insight-driven tools, the Swedish powerhouse is set to make waves with its range of premium products in the Indian market.
Recently marking its entry in India, Electrolux is a leading global appliance company that has shaped living for the better for more than 100 years with its elegant Scandinavian design coupled with innovative technology across Electrolux’s range of Care, Taste, and Well-being appliances.
The brand has ambitious growth targets in India complemented by its cohesive omnichannel approach and optimism for sustainable and better living experiences for its customers. Electrolux’s sustainable product portfolio is designed to meet the dynamic demands of modern consumers which includes air purifiers, air conditioners, washing machines, vacuum cleaners, refrigerators, dishwashers and dryers, coffee machines, warming drawers, cooker hoods, hobs, and ovens.
Gree Electric Appliances and Haier Smart Home, two leading Chinese white goods makers, both logged decent profit in the first three quarters despite a slump in the overall market.
Gree reported a 17 percent jump in net profit in the first nine months from the same period a year ago to CNY18.3 billion (USD2.5 billion), while revenue advanced 6.8 percent to CNY147.5 billion (USD20.3 billion), according to the Zhuhai, southern Guangdong province-based company’s latest financial report released yesterday.
Haier posted a 17.3 percent gain in net profit over the period to CNY11.7 billion (USD1.6 billion) while revenue surged 8.9 percent to CNY184.7 billion (USD25.3 billion), the Qingdao, eastern Shandong province-based company said the same day.
This is despite China’s home appliance market slumping 6.1 percent in the nine months ended Sept. 30 year on year to CNY510.3 billion (USD70.4 billion), according to Beijing-based market research agency All View Cloud. The sales of major home appliances such as refrigerators, air conditioners and washing machines have tumbled while that of emerging products such as cleaning robots and dishwashers have picked up.
Haier was able to increase its share of the global market in the first three quarters by improving its overseas market layout through more new high-end brands, it said. The company’s continuous digitization has improved the user experience and operational efficiency, enabling steady growth despite a tricky external environment.
Gree’s profit growth was boosted by the acquisition of a 30 percent stake in Zhejiang DunAn Artificial Environment, a core component supplier for air conditioners, earlier this year. Dun’An’s net profit doubled in the first three quarters year on year to CNY702 million (USD96.6 million).
But other major home appliance manufacturers are seeing growth stall. Midea Group’s net profit climbed 4.3 percent over the same period to CNY24.5 billion (USD3.3 billion) while revenue gained 3.4 percent to CNY271.8 billion (USD37.3 billion), the Foshan, Guangdong province-headquartered company said on Oct. 28.
Elica grows thanks to Nikolatesla and engines
The success of the new hob and motors compensates for the weakness of OEM demand and allows us to forecast a positive year end in terms of turnover and margins.
The success of the new hob and motors compensates for the weakness of OEM demand and allows us to forecast a positive year end in terms of turnover and margins.
Web editing by Web Editor 30 October 2022
Elica grows thanks to Nikolatesla and engines
Giulio Cocci_ Chief Executive Officer of Elica SpA
Elica spa grows despite the “significant slowdown in demand”. In the first 9 months of 2022, revenues increased by 3% to 419 million euros and the EBIT margin increased by 2.8% to 25.6 million (6% of turnover) obtained despite increases of 50 million in costs. The net result is therefore close to 16 million: this is 32% more than in the corresponding period of 2021.
The engines fly and the NikolaTesla range grows
Sales of own brands are growing (+ 6%) and the motors segment is flying (+ 22% to 95 million) driven, in particular by the heating segment and by the consolidation of EMC and CPS, now merged into EMC Fime srl, acquired on 2 July 2021, which contributed € 19 million in the first nine months of 2022.
In the cooking segment, the decline in OEM demand was offset by the growth of NikolaTesla cooker hobs which today represent around 16% of the Cooking turnover and recorded a CAGR of + 40% compared to the first nine months of 2020.
Groupe SEB sales decreased in the first nine months 2022
Group SEB reported its financial results for the first nine months of the year, during which sales reached 5,560 million euro, recording a fall of 0.2% (-4.3% like-for-like). «After a year in 2021 that brought our performance to record levels driven by the consumption of Small Domestic Equipment during the Covid pandemic, the Group is holding up well over the first 9 months of 2022 in an unfavorable inflationary environment» – commented Stanislas de Gramont, chief executive officer of Groupe SEB.
«Our professional activities – the CEO added – continue to grow by double digits in most geographies. Our sales are progressing in China where Supor has consolidated its leadership positions in its main categories. However, our Consumer business was penalized in France and Germany by specific issues to these two markets, as well as by the effects of the war in Ukraine. This leads us to revise downwards our sales and margin guidance for 2022 whilst intensifying the cost reduction program implemented in the third quarter
LG announced third-quarter 2022 financial results, reporting revenue of KRW 21.2 trillion and operating profit of KRW 746.6 billion
.LG Electronics’ home appliance business unit contributed 228.3 billion won in operating profit, a significant drop from last year which it attributed to marketing and logistics costs
3 2022 earnings call with investors, Whirlpool also commented on the announced review of its EMEA (Europe, Middle East and Africa) strategy. The company reported that a total of ten entities have expressed interest in this part of its business, two of which are currently potential investors. Whirlpool is now evaluating offers. It has been emphasized that this is a sale of “EMEA” as a whole and in no case will there be a sale to multiple entities piecemeal. In any case, the entire strategic review has reached its final stage, and the decision may be announced in the near future. However, Whirlpool has not yet announced anything concrete. Whether there is a possibility of some form of joint venture is not known. The official statement mentions two strategic investors. It is important to mention that the option is still in play, that no sale will ultimately take place and Whirpool will continue manufacturing in Europe. The company is ready for this option.
Third quarter in the red
As for the results themselves, they are significantly affected by the sale of Whirlpool’s assets in Russia to the Turkish Arçelik. The geopolitical situation and the fading of covid do not wish much for appliance sales this year. The 12.8% drop in sales isn’t much of a surprise. Whirlpool cut production by 35% in the third quarter because of this. On the other hand, the whole year 2022 will not be bad for Whirlpool by any means, as the company expects the second best result in its history
The South Korean company for the production of equipment LG may close a plant in the Moscow region (produces refrigerators, washing machines and televisions) and move production to Uzbekistan or Kazakhstan. Told “Kommersant” a source in the household appliances market.
LG is negotiating in Uzbekistan with Artel, which produces Samsung appliances. The company has not been operating a factory in Kazakhstan since 1998.According to experts, it would be more profitable to move production to Uzbekistan. According to one of the sources, part of the top management has already been relocated to Tashkent. Another source says that LG is negotiating with the authorities of Kazakhstan. After the start of a full-scale invasion of Ukraine in f In February, manufacturers of electronics and household appliances began to stop deliveries of products to Russia.
LG suspended deliveries of products to Russia in March.
whirlpool are taking the most drastic steps in the shifting business by slashing production of its refrigerators, dish washers and other home appliances by more than a third to shrink inventories.
The company is among dozens of U.S.-based multinational companies confronting weakening consumer demand amid higher costs. Whirlpool says cutting production volume by 35% last quarter reduced inventories by $300 million.
The moves are among the many steps companies are taking to adjust to increasingly volatile consumer spending patterns. Household staples supplier Procter & Gamble is diversifying its production assortment to keep cash-crunched shoppers from switching to cheaper brands.
In its most recent quarter, higher commodity, materials and freight costs reduced P&G’s gross profit margin by 5.5 percentage points, which was fully offset by cost cuts and price increases.
