Electrolux has forecast that operating profit in the fourth quarter of 2022 will be negative by about -2.0 billion SEK (180 million euros), including non-recurring items of -1.4 billion SEK.
The year-over-year decline in earnings was primarily a result of lower consumer demand and lower inventories both at retailers and at Electrolux. The worst performances were recorded on the North American markets where Electrolux lost around 1.2 billion SEK, as indeed in the third quarter of 2022
Fourth quarter net sales for the Group are estimated at approximately SEK 36 billion, an organic decrease of approximately 8%. Operating profit excluding non-recurring items is estimated for the Group at around -SEK 0.6 billion compared to +SEK 1.6 billion (EUR 140 million) in Q4 2021.
The Home Connectivity Alliance (HCA) announced today, at the Consumer Electronics Show in Las Vegas, the HCA 1.0 interface specification, thus establishing an industry standard for Cloud-to-Cloud (C2C) interoperability across long-life appliances, HVAC systems and TVs within the connected home ecosyatem.
Electrolux believes the standard will be significant to consumers and to the industry as they will ensure that long-life appliances, HVACs and TVs are seamlessly interoperable with one other, regardless of manufacturer.
Consumers will be able to control any device with any app and the HCA 1.0 interface specification will also pave the way for more energy-efficient solutions within the connected home.
“As a founding member of Home Connectivity Alliance, we are excited to see the progress we have achieved together with our fellow members within just a year of the organization’s launch. We are especially excited about the potential this has for the development of interoperable and energy-efficient ecosystems among trusted global brands”, says Jonas Samuelson, President and CEO of Electrolux
The new edition of the Electrolux Global Projects Magazine launches today. Now in its third year, the magazine is intended for professional architects, designers, builders and developers, and highlights the work done by the Electrolux Global Projects business over the last 12 months. As well as showcasing some of the most prestigious and innovative projects around the world that we have supplied household appliances for, it also promotes the work done by Electrolux in the fields of sustainability, design and best-in-class installation, amongst others. Anders Johansen, European Channel Manager at Electrolux, said: “In 2022, we are going to deliver more than 16 billion SEK around the world and we have established a Global Projects business sales team to manage any potential Project business opportunity.” “With our Global presence, we can deliver to any project, anywhere in the world. The Global Projects Magazine is a great example of how we can spread this message to our partners.” To view the new Electrolux Global Projects Magazine online, please visit:
Electrolux brand was relaunched in the Indian market earlier this year and it’s been an exciting journey so far. Since the re-entry into the market, Electrolux have launched their first ever experience center in New Delhi , set up a new office in the heart of Mumbai and recently opened our exclusive brand outlet in Bengaluru and Chennai.
The Electrolux India team is focused on bringing Indian consumers our premium products that help make everyday living easier. So far, the UltimateCare range of washing machines and dryers as well as air purifiers are on the market with a plan to bring to market fridges, air conditioners, vacuum cleaners and a range of food preparation products soon!
Electrolux extend their partnership with Planet Water Foundation into the Indian market to fight the issue of water scarcity across local communities.
Electrolux has set an end date for the use of expanded polystyrene in its small household appliances. It will be in March 2023, when the Group will launch a new packaging material for all its products, which in the case of small household appliances will mean eliminating polystyrene due to the difficulties in recycling this material.
The company that owns the brands, AEG and Zanussi, among others, has been working for some time on the development of new, innovative and more sustainable packaging that fulfills its main functions: to contain, protect and market products. His intention is to replace, as far as possible, the use of non-recycled material, as is the case with small electrical appliances that he will begin to pack exclusively with paper and cardboard.
In the case of large household appliances, which include heavy products such as washing machines or refrigerators, the group seeks other solutions that also allow the use of unsustainable materials such as expanded polystyrene (EPS) to be reduced to a minimum. although in this case the transition will be more gradual because using only paper in heavy and fragile products can be counterproductive in environmental terms.
The Electrolux team is now working to integrate more recycled content into packaging materials without compromising the protection of household appliances
Electrolux launched Electrolux Steam Academy, the first video course during which chef Ernst Knam cooks making use of Electrolux steam oven and of other household appliances signed by the Swedish brand. “The initiative is aimed at showing, with the aid of our ambassador, all the advantage of the steam cooking use, with a dedicated educational and engaging video course. On the digital platform, users will directly enter all secrets of steam, which preserves ingredients’ consistency and nutritional properties, meanwhile minimizing the food waste”, declares Ilaria Sgrò, Brand Activation Manager Electrolux Appliances Italia. SteamBoost Electrolux oven is intuitive and user-friendly: through Steamify technology, it automatically combines the correct steam percentage with the heat degree to cook foods perfectly, and with the Steam Regenerate Function, that recreates the wetness and the temperature of the cooked dish, foods do not dry and do not lose the original taste. The Swedish brand provides a large range of steam ovens: the SteamBake model allows, for instance, cooking delicious pizzas, muffins and tarts with uniform cooking, whereas with SteamCrisp providing each dish with a crunchy browning becomes simple. Other appliances proposed by the brand are the SenseBoil EIS82449C hob (equipped with SenseBoil function, which automatically adjusts water temperature settings to avoid energy wastes, and Bridge function), Plancha Grill (it can be used on whatever heat source and with the new stainless-steel bottom it assures an ideal temperature distribution), the Create 5 hand blender (equipped with the TruFlow technology) and the Assistant EKM4000 planetary mixer
Electrolux recognized the performance of its top suppliers from around the world at its 10th Supplier Awards event. To share key messages with the suppliers were Electrolux Group leaders including Jonas Samuelson, CEO, Carsten Franke, COO, Ola Nilsson, Chief Experience Officer, Anna Ohlsson-Leijon, Chief Commercial Officer, Vanessa Butani, VP Sustainability, and Filippo Milanese, Chief Purchasing Officer. Among the winners, there is also Sabaf that won the award in the category Consumer Experience Awards – Taste. “Sabaf supplies various gas and electromechanical components for food preparation across all business areas – Electrolux explains –. They have helped to successfully launch a complexity reduction initiative, standardizing the gas burner elements for ranges across all factories and Business Areas and improving supply resilience, quality and cost”. The other winners are: Maersk (Supplier of the Year); Computime (Operational Excellence Awards – Direct Material); e-llis Supply Chain Solutions (Operational Excellence Awards –Service Provider); Plast Group (Consumer Experience Awards – Care); Suzhou Chunju (Consumer Experience Awards – Wellbeing); Ternium (Sustainability Award). “Congratulations to all of these winning suppliers – commented Filippo Milanese –. Whilst they represent diverse industries, from component manufacturing, raw material, equipment, finish product to logistic providers, they all have one thing in common: they excel in operational excellence, sustainability and innovation, which are key to delivering outstanding branded lifetime experiences for our consumers
Global reorganization that the Electrolux group announced in recent days provides for 4 thousand redundancies, a situation that is affected by the context characterized by both the growth of inflation and the drop in consumption that also affects household appliances. The Italian management of the company met with the trade unions to decline the impact in our country where, according to a note from Fim, Fiom and Uilm, the redundancies will be 300. Half of the workers, half of the white-collar staff and managers.
However, the reduction in costs will go hand in hand with investments and the reorganization of production which will concern in particular the Solaro site, where an innovative dishwasher platform should be built. Precisely this appliance is considered increasingly strategic, since “not yet relegated to a market of mere replacement and therefore potentially growing,” the company explained to the trade unions. The intention is therefore to produce a new product in the Italian factory, which will focus on low consumption and high performance and which will require a very important investment. In fact, the site needs an intense reorganization in the now obsolete technology department, in the packaging plant and in the assembly lines, with an amount of investments in the period 2023-2026 of 102 million euros. The new production platform should allow us to reach from the current 780 thousand pieces to 960 thousand in 2024, to 1,140 thousand in 2025 and to 1,329 in 2026.However, Electrolux’s investment plan is linked to reaching an agreement with the trade unions both on redundancies and on increasing productivity. In particular, the company asks to switch from the current production revenue, equal to 90 pieces per hour, in two years to a revenue of 118 pieces per hour, for a daily production of 5,970 pieces. The major pieces would be linked to an ergonomic improvement of the workstations and to the strengthening of the staff, which however has not yet been quantified. For the trade unions it is «an extremely ambitious project, not predictable in its outcome, which greatly affects the organization of work. A comparison is now starting that will have to try to combine the sustainability needs of investments with the indispensable ones of health and safety in the workplace, as well as with the need to stabilize precarious workers and to be able to carry out a generational change
Electrolux, with a newly-expanded plant in Anderson County, announced thousands of layoffs that will affect workers across the globe.
Last week the company said it is implementing a cost reduction and restructuring program to increase earnings.
Electrolux says between 3,500 and 4,000 positions companywide will be impacted by the program in the last quarter of 2022.
“Regarding business area North America, I am obviously very disappointed with our performance,” said CEO Jonas Samuelson. “The production transformation with the two new facilities Anderson and Springfield including several new product platforms, in combination with the particularly challenging supply chain conditions, require additional measures to return to stability and profitability.”
Samuelson said stabilizing and improving operational planning in Anderson is part of the North American turnaround plan.
Swedish home appliances maker Electrolux on Friday announced that it would cut up to 4,000 jobs as part of a restructuring programme, as the group reported heavy third quarter losses. The majority of the targeted cost savings will be realised in business area North America”, AFP reported the company as saying. It added that “3,500-4,000 positions will be affected by the programme.”
The company reported heavy losses, especially in North America, owing to slowed demand. As per the estimates, inflation and high interest rates are expected to lead to further declines.
“Market demand in both Europe and North America for the full-year of 2023 is expected to further deteriorate, i.e. be negative year-over-year,” Chief Executive Jonas Samuelson said in a statement.