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.
Samsung Electronics’ integrated home appliances solution SmartThings is poised to be applied to Samsung plus 12 other major white goods brands by the first half of 2023, the company said Wednesday.
This comes as Samsung’s SmartThings is to make consumer electronics goods and mobile apps interoperable under the standard provided by the 13-member Home Connectivity Alliance, through an update of Samsung’s smart home solution next year.
The update will allow users of 13 HCA member brands — including Samsung, Arceik, LG Electronics, Electrolux Group, Haier, GE Appliances and Trane Technologies — to control more than 40 functions in 15 white goods categories designed for heating, ventilation, air conditioning and entertainment.
SmartThings will also be able to connect 300 brands of third-party devices more to build a smart home ecosystem, considering SmartThings system’s scalability, according to Samsung.
This will enable not only the interconnectivity of non-Samsung devices achieved at the level on par with that of Samsung, but also the control of electronics devices of different brands in the home through a single app.
Samsung added that a demonstration attended by HCA member companies will take place from Friday to Monday during the IFA 2022 in Berlin. The demonstration will feature Samsung’s products, including the Bespoke Cube Air Purifier, Bespoke Jet Bot AI Plus, Bespoke Refrigerator and Neo QLED TV.
Samsung Electronics has been a founding member since the HCA’s establishment in 2021, and its executive holds a leadership position of the alliance. Choi Yoon-ho, head of product planning at the IoT Biz Group at Samsung Electronics, is serving as the HCA President and Board Chair.
So far, Samsung Electronics has more than 235 million registered users of SmartThings globally across over 105 million connected devices manufactured by Samsung.
SmartThings is provided by the eponymous company, acquired by Samsung Electronics in 2014.
Swedish home appliances maker Electrolux AB’s net profit plunged 81% to 257 million Swedish kronor ($25 million) in the second quarter of the year, due to supply chain disruptions, Barrons reported citing AFP. Supply chain disruptions adversely affected the availability of essential components and production schedules, and also increased the costs of airfreight for the companyThe irregular deliveries of multiple components, mainly electronics, continued to significantly impact our volumes, cause severe production inefficiencies and increase costs for airfreight,” he said.
By contrast, second-quarter sales increased by 11 percent to 33.7 billion kronor, as higher selling prices offset the supply crunch.
Electrolux said it was still unable to meet demand, especially in its laundry and premium cooking segments.
“We continue to collaborate closely with our suppliers to mitigate these supply chain constraints and expect sequential improvements from mid-2022,” Samuelson said, noting the risk of further disruptions still loomed.
Sweden-headquartered Electrolux Professional group has reported a positive fourth quarter of global trading for 2021.
Between October and December, net sales amounted to SEK2,309m (£182m), representing an overall sales increase of 19.3%. 14.2% of the total was due to organic sales growth, while the remaining 5.1% was contributed by Electrolux Professional’s acquisition of Unified Brands last October.
Electrolux announced today that it has donated its 1,000th tree to The Nature Conservancy.
Through a partnership with The Nature Conservancy’s Plant a Billion Trees campaign, Electrolux North America is helping plant a tree on behalf of every consumer who registers their new Electrolux appliance before June 30, 2022. The company reached the 1,000th tree in the campaign’s first three months. The campaign is a major forest restoration effort with the goal of planting a billion trees across the planet.
Electrolux is committed to a sustainable future, both in its manufacturing operations and in consumers’ homes.
Electrolux is planting a tree on behalf of every U.S. consumer who registers their new Electrolux appliance.
“We are deeply committed to sustainability and are proud to support The Nature Conservancy,” said Nolan Pike, head of Electrolux North America. “Many thanks to our consumers for helping us make a big difference and reach the one-thousandth tree donation mark so quickly. Together, we are planting the seeds to shape a better future for our planet – the home we all share.”
Electrolux U.S. consumers who want to register their new product can do so here. After registering a product, consumers will receive a welcome email with a link to select a tree to be planted in one of four important North American forests.
“Planting the right trees in the right places is a rewarding way to foster clean and abundant waters, enhance wildlife habitats, cool our cities, improve our health, and help mitigate carbon emissions to stabilize our climate,” said Rachel Holmes Urban Forest Strategist at The Nature Conservancy. “We appreciate partners like Electrolux for contributing to our efforts to plant one billion trees.”
The Truth About Laundry” (European study on Electrolux laundry habits , with 12,000 adults surveyed), despite being encouraged to wash clothes at 30 ° C or below for over a decade, nearly two-thirds of Europeans (63%) still washed at 40 ° C or above. As part of its “Better Living” program, Electrolux has bold sustainability goals in apparel care with the goal of making clothes last twice as long with half the environmental impact by 2030. To help To achieve these goals, the survey was conducted to understand current attitudes and behaviors when it comes to how people care for their clothes and to what extent people view the environment. The survey finds that laundry habits are out of step with climate problems and modern capacities. Nearly six in ten people (59%) are more or less on autopilot when it comes to washing clothes, claiming to do laundry the way previous generations have taught them. The report includes a detailed analysis to show that reducing the washing temperature from 40 ° C to 30 ° C would save over 27 kg of CO2 equivalent, per family, per year. Across Europe, this would amount to an equivalent saving of 4.9 million tonnes of CO2, equivalent to removing more than one million cars from the road. If 15% of households across Europe who regularly wash their clothes at 50 ° C or more also change, the equivalent total CO 2 savingsit could reach 6 million tons per year. When it comes to wash temperatures, sex seems to play a role, but it’s not as significant as the influence of age. Women, for example, are more likely to wash at 40 ° C than men (50% vs 45%) and men are more likely to wash at 60 ° C (13% vs 8%). However, across Europe, 45% of adults between the ages of 18 and 34 wash their clothes at 30 ° C compared to only 31% of 45-54 years and only 28% of 55+ years. As for the main reasons why more people do not choose to wash at lower temperatures, nearly half (47%) said they are unsure whether their laundry would be clean. 39% expressed particular concerns about a colder wash’s ability to remove stains and 21% said it was purely out of habit. Habitual laundry practices could also explain why over half of all adults (53%) are unaware of a link between washing at higher temperatures and lasting longer. The reason this is important, according to the research, is that the key to changing laundry habits for the good of the planet may lie in turning the conversation towards fashion
A webcast ahead of the Annual General Meeting with Electrolux Chairman and CEO is now available on www.electroluxgroup.com.
As previously communicated, the Annual General Meeting on March 25, 2021 will due to the coronavirus pandemic be held without physical presence of shareholders. In addition to the information already published ahead of the Annual General Meeting, Electrolux Chairman of the Board Staffan Bohman and President and CEO Jonas Samuelson share their reflections on 2020 and the strategy forward in a webcast. The webcast is available here http://www.electroluxgroup.com.
The commercial kitchen and laundry equipment maker said in a statement it would carry out additional cost cuts during the second half the year, aiming for total annual savings of 100-150 million Swedish crowns.
Electrolux Pro was hit hard early in the quarter as the novel coronavirus spread across Europe, but it said sales had recovered somewhat in June. On a like-for-like basis, sales fell 20% in June after a decline of 50% in April and May.
“Sales in the beginning of July are in line with the percentage decline registered in June. We interpret this as a sign of recovery,” CEO Alberto Zanata said.
Making its stock market debut at the most challenging of times in March, with equity prices plumbing the depths due to the raging pandemic, Electrolux Pro shares have doubled in value in recent months.
The impact of the pandemic and the widespread lockdowns to contain it has severely hit the hospitality industry, including hotels and restaurants, which accounts for about half of Electrolux Pro’s group sales.
The company ran a second-quarter operating loss of 18 million Swedish crowns (1.60 million pounds) versus a 401 million profit a year ago.
Sales at the company, which was listed after being spun off from home appliance maker Electrolux
Swedish appliance giant Electrolux has acquired French espresso machine manufacturer Unic, bringing a full suite of espresso equipment to its Electrolux Professional division for the global foodservice and hospitality sectors.
The acquisition comes as Unic is celebrating the 100th anniversary of the design of its original machine, the Idrotermica, created by Italian Mario Levi. In 1929, Levi established the Unic manufacturing company in France, where it has been based ever since.
The financial terms of the acquisition have not been disclosed.