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

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.

Electrolux has decided to exit Russia

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.

Electrolux: investments in Italy are “under review”

Electrolux announced it to the unions: The plan of at least 70 million euros planned for the Italian plants, in particular that of Solaro (dishwasher) “is under review”. The plan was announced in July by head of HT Ruben Campagner and included 600 new jobs The Swedish multinational, which in Italy has about 5,000 employees between Porcia (washing), Susegana (cooling), Forlì (ovens and hobs), Solaro (dishwashers) and Cerreto d’Esi (hoods), should have met the trade unions at the summit of national coordination on 31 August to discuss the operating methods of the announced investment in Solaro for the new dishwasher facility.

AEG LAUNCH NEW ENERGY WASHING MACHINE

AEG/ Electrolux are launching new energy saving laundry range at global tech event IFA Berlin this week,

The new range of washing machines and tumble dryers automatically adjust time, water and energy usage. A new add-on filter catches up to 90% of microplastic fibers released by synthetic clothing.

“We innovate to make life easier and more enjoyable while enabling people to make more sustainable choices,” says Chris Braam, Head of Business Area Europe.

To learn about all the products being launched at IFA, read here https://www.electroluxgroup.com/en/electrolux-reveals-cutting-edge-water-and-energy-saving-laundry-range-at-ifa-2022-34503/

LG JOINS HOME CONNECTIVITY ALLIANCE TO EXPAND THE FUTURE OF SMART HOME EXPERIENC

LG Electronics (LG) has been named to the Board of Directors of the Home Connectivity Alliance (HCA), an organization dedicated to delivering better smart home experiences through open collaboration and innovation

Founded in 2022 and comprising a number of smart home solution manufacturers, the alliance aims to provide a safe, secure and interoperable connected home ecosystem. In addition to LG, its membership includes about 13 global brands including Samsung, Arçelik, Electrolux, Haier, GE Appliances, and Trane Technologies. The alliance seeks to enable seamless compatibility of diverse devices and services from different brands through developing and implementing guidelines for Cloud-to-Cloud (C2C) interoperability.

As a board member of the alliance, LG will soon bring its customers the convenience of being able to control and monitor other alliance members’ smart home solutions from using the LG ThinQ app.

Electrolux Levande

Last month Electrolux launched its Appliance-as-a-Service offering for landlords in Sweden to support the circular economy. And now Electrolux are introducing a new Appliance-as-a-Service platform, called ‘Levande’, in Singapore where a staggering 60,000 tons of e-waste – that’s the equivalent of 70 cellphones per person – gets thrown away each year.

Levande Subscription & Services is Singapore’s first consumer appliance subscription platform which covers the rental of our dishwashers, air purifiers, vacuums, wine cabinets, fridges, washing machines, washer dryers and more. The all-in-one appliance subscription service includes delivery, setup, service and repair, and recycling, supporting the circular economy and Singapore’s 2030 Green plan.

To learn more about Levande, read here https://levande.com.sg/

AEG NEW REFRIGERATORS

AEG is presenting a new range of refrigerators at the IFA. The innovative series includes a fridge that can reduce food waste by up to 20% and uses recycled plastic for the interior.

According to the manufacturer, the new range consumes up to 20% less CO2 emissions than previous ones. In addition, more than 80% of the materials can be recycled . “This makes the new series one of the most sustainable that is currently available on the market ,” says AEG.

“Food waste affects us all. 30% of CO2 emissions come from food production . A third of all food ends up in the garbage , around 60% of people throw away food at least once a week.That’s why we put the design sketches aside and started with the global problem. In doing so, we have succeeded in developing a range of refrigeration appliances that can help to reduce food waste, preserve food longer and reduce energy consumption and therefore costs,”

three models 6000 TwinTech® NoFrost, 7000 GreenZone and 8000 Cooling 360° are part of an integrated range of cooling devices designed to ensure greater sustainability.

ELECTROLUX WINS EIGHT MORE SUSTAINABILITY AWARDS

Electrolux announced that eight more of its appliances have been awarded the U.S. Environmental Protection Agency’s 2021-2022 ENERGY STAR® Emerging Technology Award (ETA), creating a total of 12 ETA awards for the company. All these appliances have been recognized for their significant greenhouse gas reductions driven by energy efficiency.recent winning appliances include:

Frigidaire 20 cu. ft Upright Freezer in White and Carbon

Frigidaire Professional 19 Cu. Ft. Single-Door Refrigerator

Electrolux 18.6 Cu. Ft. Single-Door Refrigerator

Frigidaire 30” and 36″ Induction Cooktop

Electrolux 30” and 36″ Induction Cooktop

Electrolux Says Profit Hit By Supply Chain Disruptions

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.

Electrolux and SolarizEgypt join forces to build solar power plants for sustainable development

Electrolux, the world’s largest manufacturer and supplier of electrical appliances with well-known brands including Zanussi,

signs an agreement to develop a solar power plant at its factory with SolarizEgypt, the leading implementation and Construction Company in Egypt and the Middle East. The energy will be used to produce washing machines, refrigerators, Delta electric water heaters, and stoves. This deal supports the Egyptian government’s efforts to transition to clean energy and achieve long-term sustainable development