The Japan household appliance market was valued at $20,279.9 million in 2017, and is expected to reach $27,979.0 million by 2025, growing at a CAGR of 4.0% from 2018 to 2025. The entertainment & information appliances is expected to retain its dominant position, in terms of revenue generation, throughout the Japan household appliance market forecast period.
Category Archives: Financial
Strong growth in the second quarter for Electrolux
Strong growth in the second quarter for Electrolux
Significant growth is expected in the second quarter of 2021, according to President and CEO Jonas Samuelson. “In the second quarter, we continued to capitalize on the lucrative market, price spikes and demand for innovative products,” he said. Operating profit was SEK 1983 million, margin of 6.5% and organic sales growth of 39.1%. A year ago, due to restrictions imposed by the coronavirus pandemic, volumes were significantly reduced, which was partially controlled by temporary spending measures. Compared to Q2 2019, organic sales growth was 16.4%. Thanks to the hard work of our colleagues and close cooperation with our suppliers, the high demand has been successfully met, especially given the global supply shortage of electronic components. However, due to irregular supplies, production efficiency and demand adjustments suffered. The market for electronic components is expected to be more limited
Haier reports 20% growth and reveals future production investment plans.
Haier reports 20% growth and reveals future production investment plans.
According to the company, it means 1: 4 fridges and washing machines sold around the world are from either Haier, Hoover or Candy brands.
In the economic 12 months 2020/21, Haier said it has six manufacturing sites and 7,7000 employees, of which 300 are R&D engineers.
It also reported a 30% year-on-year increase in smart MDA sales, with more than 3million registered users, 18+ connected product families and more than 12million smart products withinside the market.
Haier has already set out its vision to be the first customer choice for the Smart Home and is set to exhibit a simulation of a fully connected home at Milan Design Week from September 4-10, 2021.
In addition, appliance producer has announced funding in its commercial footprint to fulfill growing demand, with the opening of three factories this year and next.
The location of the three production centers will be in Romania, Turkey and China
GE Appliances to Celebrate Completion of 245-Plus-Job Expansion
Gov. Andy Beshear joined executives from GE Appliances, a Haier company, to celebrate the completion of the company’s $60 million expansion at its global headquarters in Louisville to add 4-door refrigerator production, a project creating more than 245 full-time jobs.
“GE Appliances has a long history as an innovator and jobs-creator here in Louisville, and with today’s announcement is showing a renewed commitment to our commonwealth, our people and our growing manufacturing industry,” Gov. Beshear said. “With more than 245 new manufacturing jobs for Kentuckians, we are furthering our positive momentum and growth as we continue to build an economy that works for every Kentucky family.”
GE Appliances’ expansion at Building 5 in Appliance Park, located at 4000 Buechel Bank Road, boosts the company’s high-end refrigeration profile, as it introduces production of 4-door refrigerators to its U.S. operations. The plant also is adding new quad-door and counter-depth models to its assembly capabilities. As well, the investment signifies the completion of the company’s domestic conversion to next-generation refrigerants, which offer consumers more environmentally friendly options by reducing greenhouse gas emissions.
“Since 2016, GE Appliances has invested $1 billion in new products, technology and its U.S. operations and created more than 2,000 new jobs, with close to 1,000 new jobs in Louisville,” said Kevin Nolan, president and CEO for GE Appliances. “We are committed to growing our manufacturing footprint in the United States to serve customers and owners faster and better. This investment demonstrates our focus on becoming the leading appliance manufacturer in the U.S. We’re thrilled to produce these high-demand refrigerants in the United States for the first time.”
Bill Good, vice president of manufacturing at GE Appliances, commended the company’s existing workforce for helping make the expansion possible.
“The completion of this investment shines a light on the dedication of our workforce,” Good said. “The plant expansion was completed during COVID, while suppliers and vendors were unable to travel to the plant and product demand was at record levels. Our teams worked tirelessly every weekend to ensure progress without disrupting production.”
Appliance Park in Louisville is GE Appliances’ largest manufacturing operation, with more than 6 million square feet for production of washers, dryers, dishwashers and refrigerators.
Appliance Park sits on 750 acres in southern Jefferson County, where GE Appliances began production in 1953. The campus serves as GE Appliances’ headquarters, and includes marketing, sales and support functions. Appliance Park also houses the company’s technology and engineering center, industrial design, distribution center and warehouse operations. GE Appliances employs more than 7,100 people full time at Appliance Park and a nearby call center.
Louisville Mayor Greg Fischer commented on the company’s continued growth and significant job creation.
“GE Appliances, a Haier Company, is an institution in our community, and throughout the years, it has consistently demonstrated its commitment to the city of Louisville and our residents. Over the past three years, it’s been exciting to watch as the company has added more than 1,000 jobs, proving that Louisville’s rich manufacturing tradition remains an important economic driver for our city,” Mayor Fischer said. “Today, we applaud the continued investment in Louisville with the $60 million refrigeration plant expansion. It’s clear, the future of manufacturing is being assembled here.”
Appliance Park is among approximately 4,500 manufacturing-related facilities in Kentucky, which employ about 260,000 Kentuckians statewide. The state excels as a national leader in manufacturing, with about 13% of its workforce holding a job in the sector compared to the U.S. average of 8.5%.
GE Appliances’ investment and planned job creation furthers recent economic momentum in the commonwealth, as the state surges ahead following the effects of the pandemic.
Earlier this month, thanks to strong fiscal management by the Beshear administration, the state budget office reported the commonwealth ended the 2021 fiscal year with a general fund surplus of over $1.1 billion – the highest ever in the commonwealth – and a 10.9% increase in general fund receipts to $12.8 billion.
Last month, Gov. Beshear announced Kentucky’s year-to-date private-sector new-location and expansion figures, which include over $2 billion in total planned investment and the creation of 4,000-plus full-time jobs across the coming years. Through May, Kentucky’s average incentivized hourly wage is $23.15 before benefits, a 4.7% increase over the previous year.
In May, Moody’s Analytics published a positive economic outlook for Kentucky, noting mass vaccination as the driving force behind a sustained recovery in consumer services. The state’s recovery, Moody’s said, benefited from earlier reopening efforts and increased demand for manufactured goods over services. The report also found Kentucky’s manufacturing industry outperformed the nation’s since the national downturn last year.
Fitch Ratings in May improved the state’s financial outlook to stable, reflecting the commonwealth’s solid economic recovery. The state’s April sales tax receipts set an all-time monthly record at $486.5 million, as did vehicle usage tax receipts at over $64 million.
In March, Site Selection magazine’s annual Governor’s Cup rankings for 2020 positioned Kentucky atop the South Central region, and third nationally, for qualifying projects per capita. The commonwealth also placed seventh overall in total projects, the highest of any state with a population under 5 million. Site Selection also recently placed Kentucky in a tie for fifth in its 2021 Prosperity Cup rankings, positioning the state among the national leaders for business climate.
Glen Dimplex losses
Pre-tax losses at a Dublin based unit of heating, cooling and domestic appliance giant Glen Dimplex last year increased almost three-fold to €42.62 million.
According to accounts filed by Glen Dimplex Holdings Ltd, the group recorded the increase in pre-tax losses as revenues declined by 8 per cent from €884.64 million to €793.4 million in the 12 months to the end of September last.
The chief factor behind the 178 per cent increase in pre-tax losses from €15.29 million to €42.62 million was the group incurring €20.17 million in restructuring costs after a spend of €6.5 million under that heading in 2019.
The group’s €22.6 million total cost for non-trading items included a €2.5 million donation for educational purposes and this followed €16,000 under that heading in 2019.
Loss
Glen Dimplex recorded an operating loss of €10.2 million for 2020 which was an increase of 23 per cent on the 2019 operating loss of €8.3 million.
On the impact of Covid-19, the accounts said that “whilst sales have reduced year on year, they have recovered in Q4 of 2020 and have remained steady post year end”. However the company is confident that it is well placed manage the impact of Covid-19 and continues to monitor the situation closely.
The accounts said that a number of sites within the group had to close for a period during the year due to mandatory government restrictions.
“The group availed of wage support/furlough schemes in the jurisdiction that it operates in and undertook cost cutting measures where appropriate.”
The accounts confirmed that the group received €8 million in State Covid-19 subsidy schemes across a number of jurisdictions last year.
It was also confirmed that the group made a number of strategic decisions in order to negate the challenges it faced, including undertaken restructuring programmes and are making a major investment in an enterprise resource planning (ERP) system
The directors’ report aid that the trading environment in the UK is challenging following the decision of the UK to exit the EU. It said that the group was in a strong position with cash at €229.7 million at the end of September .
The group’s research and development (R&D) expenditure last year totalled €27.3 million. In 2019 the R&D spend was €30.9 million.
Costs
Last year’s loss takes account of non-cash depreciation costs of €23.97 million. Directors’ pay increased from €996,000 to €1.47 million.
A breakdown of revenues shows that €606 million of sales were recorded in the EU with €109 million in North America; €46.2 million in “rest of world” and €31.34 million in “rest of Europe”.
Numbers employed reduced from 4,696 to 4,505 as staff costs fell from €250 million to €225 million. The bulk of employees are employed in production at 2,412, 1,063 in selling and distribution, 663 in administration and 366 in research and development. Shareholder funds at the end of September last year totalled €256.76 million.
Middleby Acquires Premium Residential Appliance Brand Novy
The Middleby Corporation (NASDAQ: MIDD) today announced the acquisition of Novy, a leading manufacturer of premium residential ventilation hoods and cooktops based in Belgium, with sales of approximately $90 million USD annually and EBITDA margins in excess of 20%.
AO Profit Surge
https://edelivery.net/2021/07/ao-praises-logistics-staff-extra-effort-covid/
AO announced our full-year results last week, recording pre-tax profits of £20 million and a 62% surge in revenue.
CEO John Roberts praised the staff at AO Logistics for going above and beyond throughout the pandemic.
Elica acquisitions
Elica completed its acquisition of 100% of the share capital of Electric Motors Company (EMC) and CPS. “I am proud to announce the completion of the acquisition of EMC and CPS, European leaders in the design and manufacture of electric motors, domestic cooker hood fan systems, pellet stove fans and motors for medical applications – said Luca Barboni, Managing Director of FIME, Motors Division of Elica Group -. This transaction will allow us to seize significant opportunities in terms of internationalisation and new business development, and fits perfectly into the growth strategy of the Motors business”. In 2020, EMC and CPS reported pro-forma net revenues of 21.4 million euro (up 22.6% on the previous year). Payment for the purchase of 100% of EMC and CPS amounts to 31 million euro.
Arçelik and Hitachi Launch a New Joint Venture, Arçelik Hitachi Home Appliances
Arçelik Hitachi Home Appliances, the new joint venture will play a major role in the Asia-Pacific region and will expand global sales of Hitachi branded products (excluding Japan)
Hitachi Global Life Solutions, Inc. (“Hitachi GLS”) announced the launch of a new joint venture company, Arçelik Hitachi Home Appliances B.V. The new joint venture, established by transferring 11 subsidiaries outside Japan (two manufacturing and nine sales companies) of Hitachi GLS, is operationally based in Bangkok, Thailand. Arçelik Hitachi Home Appliances provides manufacturing, sales, and after-sales service for Hitachi branded home appliances (refrigerators, washing machines and vacuum cleaners, etc.) outside Japan.
Arçelik has consistently expanded its home appliance business to 150 countries around the world. The company has grown significantly in Europe and achieved strong growth in South Asia over the last decade. Hitachi GLS has been operating its home appliance business mainly in Southeast Asia and the Middle East, where it enjoys a high-end brand image.
Arçelik Hitachi Home Appliances, the result of the collaboration between the two companies, will leverage their strengths such as supply chain and technological capabilities to build a competitive and innovative offer to market. The newly assigned CEO will be Zafer Üstüner, was the former Regional Head of APAC and General Manager of Thailand at Beko. Under his leadership, the new joint venture will combine the sales networks of both companies to expand the sales regions of Hitachi brand products to Europe, North Africa and other regions, as well as to integrate business bases such as production systems and procurement to strengthen our competitiveness. In the field of R&D, Arçelik and Hitachi GLS will also integrate the knowledge of both parties to create new value such as connected home appliances.
Sustainability is at the core of both Arçelik’s and Hitachi GLS’s strategies. Through their combined leadership in energy efficiency and sustainable solutions related to the home, the partnership will increase competitiveness around these key issues in the broader market.
“We are thrilled to announce the launch of Arçelik Hitachi Home Appliances today. For the past couple of months, we have been working tirelessly and diligently with the Hitachi GLS team to establish this joint venture, which is a significant milestone in our Silk Road strategy. Arçelik Hitachi Home Appliances provides both companies with an excellent opportunity to leverage successes in the Asia-Pacific home appliances market that holds a growing middle-class population, emerging retail channels, increasing household income and developing lifestyles. The company will leverage both companies’ robust market position, global expertise, and Hitachi’s brand heritage to deliver global and local market needs.”
Hakan Bulgurlu, CEO, Arçelik:
“We are delighted to launch our new joint venture with Hitachi GLS, Arçelik Hitachi Home Appliances. This is a major step for us in achieving our global expansion ambitions and goals to become one of the world’s top home appliances companies. The venture will have the chance to utilize complementary product portfolio and operational footprints of Arçelik. In the next few years, we will see Hitachi brand products covering full major domestic appliance need of customers and growing both in existing markets and new ones (geographies) by the support of Arçelik companies.”
Keiji Kojima, President and COO, Hitachi, Ltd. (Hitachi GLS’s parent company):
“We are delighted to establish today this new joint venture company with Arçelik – a company who is recognized for its high-quality products and excellent management efficiency. The Hitachi Group aims to contribute to people’s Quality of Life (QoL) through its Social Innovation Business, which solves social issues. Our aim is to realize a sustainable society by focusing on areas that promote the three values of ”Security and Safety,” ”Environment,” and ”Resilience”. The home appliances business is strategically important for the Hitachi Group, as it is the first point of contact for our brand with people – especially while demand for connected home appliances using digital technology is increasing. Through this collaboration with Arçelik, we will provide safe and secure living through Hitachi-brand home appliances to many more regions and contribute to improving people’s QoL globally.”
Jun Taniguchi, President, Hitachi Global Life Solutions, Inc.:
“Today, we are pleased to introduce Arçelik Hitachi Home Appliances – our new joint venture company with Arçelik. I am confident that by strengthening the complementary sales networks and product strategies of both companies, Arçelik Hitachi Home Appliances will gain a competitive edge and become a market leader in the global home appliances market. In addition, by combining the distinctive technologies of both companies, such as environmental resistance and digital technology, we will contribute to improving the QoL of consumers and develop products and services that will realize a sustainable society.”
Zafer Üstüner, CEO, Arçelik Hitachi Home Appliances:
“Today marks a new and exciting journey for Arçelik Hitachi Home Appliances, which is created to address the evolving needs for APAC market and tap into their economic growth. This company brings together global strategies from both businesses, obtains product synergies, and makes a targeted investment in brand and promotion to accelerate growth across all geographies and fulfil its growth potential. The company will also create strong efficiency gains through new procurement and manufacturing synergies gained from the partnership. Additionally, the new venture leverages Hitachi GLS’s strong presence in APAC and its high-end home appliances in the rapidly growing Asian market to make the new venture a success. Our teams have been working extremely hard on this strategic joint venture and are looking forward to seeing Arçelik Hitachi Home Appliances grow and develop in the coming years.”
About Arçelik Hitachi Home Appliances
Arçelik Hitachi Home Appliances was established on July 1st, 2021 as a joint venture between Arçelik A.Ş. and Hitachi Global Life Solutions, Inc to manufacture, sell and provide after-sales services of Hitachi branded home appliances including refrigerators, washing machines, vacuum cleaners globally (outside of the Japanese market). Arçelik acquired 60% ownership in the new company while Hitachi Global Life Solutions, Inc. continues as a 40% shareholder of the company. Through this joint venture, Arçelik AŞ and Hitachi GLS, Inc. have combined their expertise in other key areas such as R&D, procurement and production systems to optimize the joint venture’s global supply chain and strengthen its competitive positioning in the market.
https://www.arcelik-hitachi-homeappliances.com/
About Arçelik
Arçelik is a multinational household appliances manufacturer that operates with 12 brands (Arçelik, Beko, Grundig, Blomberg, ElektraBregenz, Arctic, Leisure, Flavel, Defy, Altus, Dawlance, Voltas Beko) and employs over 40,000 people worldwide. Arçelik’s global operations include sales and marketing offices in 46 countries, and 26 production facilities in 9 countries. As Europe’s second largest white goods company by market share (based on volumes), Arçelik reached a consolidated turnover of 5 billion Euros in 2020. Arçelik’s R&D and Design Centers across the globe, are home to over 1,600 researchers and hold more than 3,000 international patent applications to date. Arçelik is named the “Industry Leader” in the Durable Home Appliances category for the 2nd year in a row in Dow Jones Sustainability Index 2020 and, in accordance with PAS 2060 Carbon Neutrality Standard, became carbon-neutral in global production plants in 2019 and 2020 fiscal years with its carbon credits.
www.arcelikglobal.com
About Hitachi GLS
Headquartered in Tokyo, Japan, Hitachi Global Life Solutions, Inc., is a wholly owned subsidiary of Hitachi, Ltd. And Hitachi GLS is responsible for sale of (and provision of engineering and maintenance services for) home appliances, air conditioning equipment and other equipment and devices; and provision of products and solutions utilizing digital technologies. Based on the idea of “More smiles to life for one and all. A more comfortable tomorrow for people and society. With innovations that deliver happiness to the world, we open new doors to the future. “, we seek to gain a closer understanding of customer lifestyles. By resolving individual customer lifestyle issues, through well-designed and sophisticated products and services utilizing of the Hitachi Group’s value chain and digital technologies, we aspire to be a company that contributes to improving the quality of life for customers around the world.
www.hitachi-gls.com/
De’Longhi, positive Q1
During the first quarter 2021, De’ Longhi net revenues reached 678.7 million euro, up by 72.6%. Adjusted Ebitda, instead, recorded 128.6 million euro, up 205.3% and equal to 18.9% of revenues, with an improvement of 8.2% compared to the previous year. Ebit was of € 108.2 million euro, up by 516.3% and equal to 15.9% of revenues and net profit of 80.9 million euro, up 636.2%, equal to 11.9% of revenues. Morevoer the Group recorded a positive net financial position of 318.2 million euro, improving by 86.2 million euro in the quarter.
The extraordinary results achieved – commented De’Longhi CEO Massimo Garavaglia – further consolidate De’Longhi’s position among the leaders of the industry. The Group has been able to seize all the opportunities offered by the market in these months of great uncertainty, thanks not only to its brands and products portfolio but also to the great production flexibility and the adaptability of teams and organization. I take this opportunity to thank all the employees of the Group for the dedication, commitment and professionalism shown in recent months, without which we would not have been able to achieve these goals.
Looking at the next future – added garavaglia – the continuation of the development trend of coffee and kitchen, strengthened by the increased attention of consumers towards the home environment, support our positive expectations for the coming quarters. In particular, the signals that we receive from the markets in these first weeks of the second quarter reasonably suggest, for the remaining months of the year, a very robust and more sustained sales trend than initially expected; in light of this, therefore, we revise upwards our guidance for the current year and for the new perimeter including Capital Brands, now forecasting revenues growing at constant exchange rates at a pace between 28% and 33% (i.e. in the range 18 % – 22% on a like-for-like basis) and an adjusted Ebitda in line with 2020 as a percentage of revenues. This expected dynamic will allow us to continue the previously announced strategy of increasing investments in marketing and communication, in support of our brands and products, thus fueling a virtuous circle aimed at medium-long term growth strategy.
WHITEGOODSNOW 