Electrolux, a multinational company, finds itself in a challenging situation during the first quarter of 2024. Let’s delve into the details:
Financial Losses:
The company reported an operating loss of 720 million crowns for Q1 2024, a significant increase compared to the previous year’s loss of 256 million crowns.
This financial setback was partially offset by a decline in raw material prices.
Reasons Behind the Crisis:
Intense Competition: Electrolux faces fierce competition, particularly from Chinese competitors.
Promotions and Cost Pressure: To remain competitive, the company has had to run continuous promotions. Additionally, families worldwide have shifted toward low-cost products, impacting premium household appliances under the Electrolux brand.
North America’s Struggle:
North America, once a profitable market for Electrolux, now faces challenges.
Despite cost-cutting efforts, thousands of layoffs did not translate into profits due to high price pressure from Asian chains and importers in 2023 and Q1 2024.
Leadership Change:
CEO Jonas Samuelson has resigned, leaving the company.
The new organizational structure aims to streamline operations and reduce costs.
Speculation on Buyers:
Midea and Haier are rumored to be potential buyers for Electrolux.
In summary, Electrolux grapples with financial losses, leadership changes, and a tough market environment. The road ahead involves strategic decisions and adaptation to remain competitive in the global landscape.
Tag Archives: Electrolux
Electrolux Air fryer
Electrolux award-winning air fryers. Staying true to with their goal of making healthy and sustainable eating the preferred choice by 2030, this new generation of air fryers can help consumers cook their food with up to 90% less fat and up to 50% fewer calories*, in a faster and more energy-efficient way that doesn’t compromise on the taste.
The compact size of the air fryer, designed to fit in even a small kitchen in the modern home, also means fewer raw materials are used to produce it and allows us to be more efficient with our logistics.
The range is also designed with a multicultural perspective in mind, giving users the opportunity to explore new recipes and cooking techniques offered on the user interface. We’re proud to add that the range recently received two prestigious iF Design Awards in both the product design and user interface categories. Known as Electrolux 600 and 700 Air Fryers/AEG 6000 and 7000 Air Fryers in Europe and Electrolux UltimateTaste 300 and 500 Air Fryers in Asia Pacific, Middle East and Africa, the range was launched earlier this month. It will be launched in North America as Frigidaire 5.3 Qt Air Fryer in September this year.
Electrolux EcoLine Hub at Fuorisalone
The Electrolux EcoLine Hub is open now at Fuorisalone 2024, our one-off installation aimed at increasing environmental awareness and more sustainable living practices.
If you’re attending Milan Design Week then please come and visit us. You’ll find the Electrolux EcoLine Hub within the BAM – Biblioteca degli Alberi (Library of Trees) and we’ll be open until Sunday 21 April.
A unique space where education meets inspiration, the Electrolux EcoLine Hub also includes an exhibition of products that are part of the Electrolux EcoLine range – a selection of our most energy efficient kitchen and laundry appliancesThe products dedicated to garment treatment feature a revamped design that enhances and simplifies the physical and digital user experience. For the first time, Electrolux’ washing machines feature the SmartSelect interface, which adjusts cycle duration and temperature based on needs and can help save water, energy and time. The SensiCare+ technology allows to save up to 40 percent in time, water, and energy by detecting the weight of each load and adjusting the wash cycle*. The SmartSave function featured in the dryers allows to choose between drying more energy efficiently or faster to save time. Visitors will also have the opportunity to explore in detail all the new features of the latest models in an immersive and in-depth experience.
In addition, thanks to AWorld, a mobile app that fosters a culture of sustainability through gamification, it will be possible to calculate one’s Carbon Footprint, introducing a fun way to learn about sustainability. Furthermore, a collection point for small WEEE will be set up inside the Hub, thanks to the partnership with Erion WEEE, a non-profit consortium for electronic waste management and recycling of which Electrolux is an active member. In addition, “Materia Viva” (“Living matter”), a docufilm created by Erion WEEE in collaboration with Libero Produzioni to raise awareness about sustainability, the circular economy and WEEE, will be screened. Leveraging a pop approach, experts and well-known personalities guide the audience to good recycling practices, demonstrating how simple gestures can help contributing to a better future.
Electrolux’s appliances at the EcoLine Hub
Electrolux EcoLine Hub will be open to the public of Fuorisalone 2024: it is a space created to increase environmental awareness and encourage a more sustainable lifestyle. The installation will show some of the company’s most efficient products: the appliances belonging to the Electrolux EcoLine. In detail, the interior of the Hub reproduces a real home with two main zones: in the first area, dedicated to Taste, there are the 800 Steamboost oven (KOBBS39WX), the induction hob with integrated hood (KCC84453CK) , the SenseBoil 700 with the new SaphirMatt glass (EIS82453IZ), the dishwasher (KEZB8500W) and the 700 GreenZone fridge-freezer (KNP7MD18S); in the second area, dedicated to the clothing care, it is possible to discover the particularities of the new range of dryers and washing machines, and the filter for microplastics. Finally, among the various initiatives, within the Hub, thanks to the partnership with Erion WEEE (non-profit consortium for the management and recycling of electronic waste of which Electrolux is an active member),
Electrolux @Fuorisalone 2024
Electrolux will unveil the Electrolux EcoLine Hub at Fuorisalone 2024, aimed at increasing environmental awareness and more sustainable living practices.
From April 16th to 21st, in the heart of Milan’s green quarter, Portanuova, the Electrolux EcoLine Hub will emerge as a unique space where education meets inspiration. More than a mere exhibition, the Electrolux EcoLine Hub will offer a fully immersive experience designed to enlighten visitors on the simplicity and significance of practices that can help them live more sustainably at home.
Through this initiative, Electrolux aims to stimulate a broader dialogue on the topic. The Electrolux EcoLine Hub also includes an exhibition of products that are part of the Electrolux EcoLine range – a selection of our most energy efficient kitchen and laundry appliances, designed to help the user make better choices every time they use them.
Sweden’s Electrolux Torbjorn Loof as new chairman
Torbjörn Lööf is now Chairman of the Board of the Electrolux Group.Torbjörn was CEO of Inter IKEA Holding from 2013-2020 and is currently Board member of Husqvarna and Essity among others.
“Electrolux Group has been innovating and improving people’s lives in homes around the world for over 100 years. I look forward to being part of the journey ahead in my role as Chairman, working with the board, Jonas and the management team to drive sustainable profitable growth for the company and shareholders,” says Torbjörn
Electrolux Introduces Pure Multi 300 and 500 Air Purifiers
Electrolux, a renowned name in home appliances, has recently unveiled its latest offerings in the air purification domain: the **Pure Multi 300** and **Pure Multi 500** air purifiers. These compact devices pack a punch when it comes to cleaning the air in your living spaces.
**Key Features:**
1. **Advanced Filtration**: Both the Pure Multi 300 and 500 models are equipped with **HEPA filters**, capable of capturing up to **99.97% of airborne particles** as small as **0.3 microns**. The Pure Multi 300 employs a **3-step filtration system** with a carbon pre-filter, while the Pure Multi 500 takes it up a notch with a **4-phase system** that includes an additional activated carbon filter.
2. **Efficient Circulation**: The innovative **spiral outlet design** creates a powerful vortex, ensuring efficient air circulation. In just **11 minutes**, these air purifiers can purify a room of up to **10 square meters**.
3. **Whisper-Quiet Operation**: Worried about noise? Fear not! Even in **silent mode**, the sound level remains at a mere **20 decibels**, allowing you to keep the air purifier running while you sleep peacefully.
4. Smart Connectivity: The EPO50371UG model stands out with its connectivity features. It provides real-time data on air quality and allows remote activation of various programs. Stay informed and take control of your indoor environment effortlessly.
5. Bacteria Neutralization and Virus Filtration: Electrolux’s air purifiers are not just about particles. They go the extra mile by neutralizing 99.99% of bacteria and effectively filtering out 99% of airborne viruses.
6. PureSense Technology: The **EPO30311UG model** boasts an advanced **IR particle sensor** through its PureSense system. It continuously monitors air quality and dynamically adjusts the fan speed based on real-time measurements.
In summary, Electrolux’s Pure Multi 300 and 500 air purifiers combine cutting-edge technology, compact design, and powerful performance to create a healthier and fresher indoor environment.
Electrolux received a record fine from the Czech antimonopoly office
intervention of the ÚOHS, which already changed the Czech home appliance market at the end of January 2022, has its result after more than two years of waiting. The Antimonopoly Office fined Electrolux Swedish manufacturer over 125 million crowns. The company admitted to violating competition rules and cooperated with the authority. Nevertheless, it received a record fine – the press release states that Electrolux was proven to have engaged in long-term price-fixing activity, at least from 2012 to the fall of 2021. The text also mentions that the authority is dealing with five more proceedings in this area of the market. In the last two years, its representatives have visited companies such as Beko, HP Tronic and K+B Progres. And also to the FAST ČR wholesaler, which was already fined 30 million last May, as we wrote here . At Electrolux, the intervention of the Office for the Protection of Economic Competition already led to fundamental personnel changes two years ago. In addition to the management of the local representative at the time, two of the three sales teams also ended. Since then, the company has changed significantly in terms of personnel. From September 2022, it will be headed by Jan Rožek
Electrolux washing with steam
All new Electrolux and AEG washing machines ranges in Europe from Series 7 and above are equipped with a steam program. In APAC & MEA, select washing machine ranges are now equipped with steam programs to sanitize or refresh clothes, and machines in North America and Latin America are equipped with steam programs to remove dirt and tough stains from fibers.
As Electrolux explains, functions such as SteamCare and ProSteam use over 96% less water and 30% less energy compared to a complete washing cycle. The gentle SteamCare program – said Calina Gavril, Care Experience Marketing Director for Electrolux Group – enables consumers to quickly refresh one or two garments at a time, such as a blouse or shirt. In 25 minutes, gentle steam removes creases, odors and restores that newly washed feeling to even delicate garments.
Our consumer research – adds Isabell Foyer, European Category Manager, Washing Machines – consistently shows that steam is one of the most appreciated functions, and that it continues to have high consumer appeal. Changing laundry behavior takes time, but we are seeing more consumers changing their laundry behavior to reduce their environmental impact and costs, particularly in light of higher energy prices.
Electrolux divests the facility in Memphis
Electrolux Group will divest its manufacturing facility in Memphis, Tennessee, USA to a US-based investment company for a cash consideration of 61 million dollar. The agreed divestment follows a previous agreement with another buyer which was not completed.
The agreement includes a due diligence period before closing of the transaction, during which the buyer can terminate the contract. The approximate gain of 50 million dollar from the divestment will be recorded as a non-recurring item, positively impacting the operating income in business area North America, in connection with closing of the transaction.
According ti Electrolux, closing and the positive cash flow impact are expected to occur during the fourth quarter of 2023. The Group’s production in Memphis stopped on June 30, 2022, and the operations have been transferred to the new facility in Springfield, Tennessee
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