Home appliance group Gorenje saw its operations make a loss of EUR 2.1m in the first quarter of the year, as sales were hit by the weak economic conditions in Ukraine and Russia and a rise in the US dollar.

Group revenues stood at EUR 266.4m in the three months through March, which is a 8.4% decline on the same period last year, the group said in an earnings release through the Ljubljana Stock Exchange on Friday.

Important markets of Ukraine and Russia were severely affected by the fighting in Ukraine and the economic slowdown in Russia, while the depreciation of the euro against the US hit profit margins on small household appliances and affected raw material prices.

The group responded by reducing its headcount by around 209, about 2% of the total workforce, compared to the first quarter last year. Earlier in May, 136 staff in Slovenia were temporarily laid off until the situation on the Russia and Ukrainian market improves.

The group is also focusing on optimising input costs and production processes and insuring currency risk in order to respond to the prevailing conditions.

The group saw an increase in sales in Eastern Europe, Netherlands and Australia.

Simplicity of operation meets clear design

No fewer than six products from Miele recently received the coveted Red Dot Design Award for design excellence. Alongside five domestic appliances, a series of commercial washer-disinfectors from Miele Professional were among the award-winning products.

Top-flight pleasure and enjoyment and excellent hygiene and cleanability were the reasons the CM 6310 received the award. The One Touch for Two function allows the preparation of two coffee specialities simultaneously at the touch of a single button. Furthermore, the brew unit on this countertop model can be removed for simple cleaning. Further benefits include the fact that many components are dishwasher-proof and that all milk lines are automatically flushed when the machine is switched off.

On K 30.000 refrigeration products, the innovative FlexiLight, guaranteeing glare-free lighting, swayed the jury in Miele’s favour. The lighting source is integrated into the glass shelves and is activated via contacts at each rack level. As a result, the refrigerator is uniformly and brightly lit. And to simplify operation, several models even offer touch controls.

Among the award-winning models were the DGM 6800 steam oven with microwave and the KM 6366-1 induction hob. The steam oven with microwave is an uncompromising 2-in-1 product which combines the convenience of a microwave oven with the quality of results produced only by a steam oven. Particular highlights of the induction hob are its six variable rings (PowerFlex). Design clarity and simplicity of operation were the main criteria for the jury.

Intelligent navigation, good cleaning results and top-class workmanship were the convincing virtues of the Scout RX 1 robovac. The Triple Cleaning System, with two side brushes, a beater bar and an efficient fan, guarantees high-level cleaning performance. Thanks to its reduced height, the Scout buzzes around below pieces of furniture with admirable ease.

The commercial washer-disinfectors from the PG 85 series feature AutoOpen, an automatic door opening system, and a door salt container, simplifying the refilling process. The new console with its centred display providing an uninterrupted sheet-steel surface guarantees a simple and easy-to-clean user interface. Further aspects considered in awarding prizes were the baskets and inserts which adapt to varying loads.

The Red Dot Design Award is presented for design excellence and has gone since 1955 to products for their outstanding design. In 2015, companies and designers from 56 countries submitted around 5000 products in 31 categories. The official award ceremony will take place in the Aalto Theatre in Essen on June 29, 2015.

Turkish white-goods maker Arcelik said its net profit rose to 141.5 million lira ($52 million) in the first quarter from 131 million a year ago.The figure beat expectations of 129 million lira

Receiver of bankrupt Fagor Mastercook has to approve its acquisition by German BSH, the owner of Bosch within one week, otherwise BSH will withdraw the offer

Appliance manufacturer Gorenje has provided MTV with two of its Retro fridges, which are set to appear in the ‘Geordie Shore’ house. 

Electrolux announced that it will discontinue the accounting practice of items affecting comparability.
Over the years, the company has implemented restructuring programs for the purpose of optimizing its manufacturing footprint and reducing costs to improve competitiveness. Restructuring charges related to these programs have been presented separately as items affecting comparability in the income statement. Operating income by business area and selected key ratios have been reported excluding these costs. These major restructuring programs are now in the final stage and, as previously communicated, Electrolux will as of 2015 discontinue this accounting practice. Although there will likely be restructuring programs going forward, these are expected to be much less extensive.
For comparability purposes, quarterly and yearly figures for 2014 have been restated. While this change in accounting practice has no impact on the Group’s operating income, the restated gross operating income has been reduced. Costs previously recognized as items affecting comparability in the amount of 1.2 billion Sek have been allocated to costs of goods sold, selling expenses and/or administrative expenses. The restatement of operating income by business area has mainly affected operating income for Major Appliances EMEA, which includes restructuring costs in the net amount of 1.2 billion Sek for 2014. The restatement has no impact on the balance sheet or cash flow. Although the practice of recognizing items affecting comparability will be discontinued, it is the intention of Electrolux to clearly comment on any potential future restructuring costs or other material transactions of non-recurring nature.

Whirlpool Corp. will become the exclusive supplier of home appliances for Dan Ryan Builders, effective May 1 of this year.

Under the multiyear agreement, the company will furnish its homes exclusively with Whirlpool or KitchenAid branded appliances, more than 80 percent of which are made in the U.S., Whirlpool announced this week.

China’s Haier Group, a white goods giant, on Thursday started operating its largest overseas research and development center in Saitama Prefecture in Japan.

The R&D center will focus on fundamental research, new product planning and key technology design over white goods led by refrigerator, according to the center’s chief Shi Zhenyu.

Shi said the center will continue to attract Japanese and talents from other countries on the field, in a bid to develop more popular white goods to meet consumer demand, adding the center will also put an eye on developing smart and network home appliances.

Kiyoshi Ueda, governor of the Saitama Prefecture, welcomed the opening of Haier’s largest R&D center and said the center will contribute to local economy and development through providing more jobs.

Haier invested some 7 billion yen (about 58.11 million US dollars) in the center, with 200 researchers working in the center.

Whirlpool, has returned to Turkey with Indesit. The Assistant CEO of Whirpool, Marc Bitzer, announced that new investments will be made in Turkey and said that Turkey was a key country in a region with a population over 200 million. The American brand purchased the Italian domestic appliance producer Indesit last year. Whirlpool is now planning to reach the Middle Eastern and Central Asian markets via Turkey.

AO: “We can explain products better than big showrooms’.