Tag Archives: Electrolux

Electrolux Pro slumps to loss amid pandemic, to cut more costs

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Electrolux Professional

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

Electrolux warned it expected to make a significant second-quarter loss due to headwinds from the COVID-19

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Swedish home appliance maker Electrolux on Thursday warned it expected to make a significant second-quarter loss due to headwinds from the COVID-19 pandemic, after it beat earnings forecasts in the first three months of the year.

The rival of U.S. Whirlpool said first-quarter operating earnings were 122 million Swedish crowns ($12.42 million), up from a 53 million loss in the year-ago quarter, which was marred by large one-off costs, and above the 19 million profit seen in a Refinitiv analyst poll. ($1 = 9.8220 Swedish crowns)

Springfield Electrolux closed through Sunday after worker tests positive for coronavirus, spokeswoman says

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Electrolux has shut down its factory in Springfield after an employee was diagnosed with COVID-19, according to a company spokesperson.

https://eu.tennessean.com/story/news/local/robertson/2020/04/30/springfield-electrolux-closed-through-sunday-after-worker-tests-positive-coronavirus-spokeswoman-say/3062015001/

Electrolux: 23% of the total products sold in 2019 were the most energy and water-efficient ones

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Electrolux has released its 2019 Sustainability Report (www.electroluxgroup.com/sustainabilityreports/2019), where the company reports the most important actions undertook and results obtained in this important area. Last year, the Group reached a 75% reduction in CO2 emissions from its operations since 2005. To reflect Electrolux new commitment to become climate neutral across the supply chain by 2050, and its increasingly holistic approach to sustainability, the overall sustainability framework has also been updated.
The Report also underlines that last year the most energy and water-efficient products accounted for 23% of the total products sold.
Moreover, at the 2019 UN General’s Climate Action Summit, Electrolux joined a global movement of business leaders working towards limiting the global temperature rise to 1.5°C. Through a further UN initiative, Cool Coalition, Electrolux has committed to remove global warming gases from products by 2023 which also ties into the overall framework.
To celebrate the Electrolux centenary in 2019, The Better Living Program (BLP) was launched. This is an action plan to enable better and more sustainable living for consumers around the world through 2030. The BLP is now also fully integrated in the overall sustainability framework.
Other key initiatives and achievements include 20 times more recycled plastic used in products and 44% less energy used per manufactured product.
But sustainability is not only focused on environment. There are other initiatives that show the social responsibility of the Group, starting from the 30,000 children that have learned about sustainable eating through Electrolux Food Foundation’s Food Heroes program.
Moreover, a green bond framework was introduced as a new way to fund Electrolux sustainability initiatives. Proceeds will be used to finance, or refinance projects covered by the environmental areas of the Electrolux sustainability framework, For the Better.

Electrolux closes factory in northwestern Romania

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Electrolux has temporarily closed its gas oven factory in Satu Mare, northwestern Romania, where it has 850 employees, due to lack of orders, Ziarul Financiar reported.

Company officials say this is a short-term measure.

“This is a short-term measure, which allows us to adjust our production schedules according to the sales expected in the near future. After the fine tuning of the stocks of resources in line with the smooth operation of the factory and the volume of orders, we will relaunch the production,” company’s officials said.

Merging US Factories Tempers Electrolux Profit Expectations

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Electrolux AB, the Swedish maker of Frigidaire appliances, has announced that it’ll incur a bigger-than-expected financial hit from merging fridge and freezer factories within the U.S. amid delivery disruptions. This plant reorganization, combined with accounting adjustments and destocking at a key U.S. client, cut $70 million off fourth-quarter 2019 operating income, compared with a previous estimate of $25 million. Savings targeted for this year also will take until 2021 to materialize, with just a fraction coming in 2020.
Electrolux sees a price reduction of 200 million Swedish kronor ($21 million) next year, down from a previous estimate of about 800 million kronor. The savings are a part of a much bigger decide to revamp the factory setup, an attempt that has shutting a plant for cooking products in Memphis, moving U.S. refrigerator-production to a replacement site in Anderson, SC, and outsourcing production of vacuum cleaners in Hungary. the corporate still expects the measures to yield about 3.5 billion kronor in annual savings by 2024.
DNB analyst Christer Magnergard says the postponement of savings will cut about 8 percent from this year’s operating profit, which the issues Electrolux has encountered within the U.S. increase the danger of further disruptions to the efficiency plan. He said it’s “alarming” that the corporate was unaware of issues earlier which there’s a “clear risk” that the weak performance will still impact earnings through the primary half this year.
Electrolux is investing $250 million in automation and digitization of the plant in Anderson to exchange one nearby, and another slated for closure in St. Cloud, MN. The transition led to temporary capacity constraints that affected deliveries to some customers, which are expected to be resolved within the half , it said.
Europe’s largest appliance maker, Electrolux has been working to offset higher costs and currency moves by increasing prices and selling more higher-margin appliances. At an equivalent time, it’s investing heavily in new and more efficient manufacturing facilities with increased automation. within the third quarter of 2019, Electrolux took a charge of 1.6 billion kronor to finance cost-cutting measures that include almost 1,700 job cuts.

Electrolux adapts manufacturing to offset difficulties with supply

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Electrolux believes there is a considerable risk of a material financial impact during the first half of 2020.
In the fourth quarter interim report 2019, published on January 31, 2020, the company said that an extended period of supply chain disruptions in China related to the spread of the coronavirus (COVID-19) could potentially have a material financial impact on Electrolux.

Now, given the rapid spread of the virus, impacting markets where Electrolux has a significant presence in terms of production and sales, the company believes the risks related to this have increased materially. These risks include supply chain disruptions, government countermeasures and changing consumer behavior. It is currently not possible to predict the duration or scope of the crisis, and therefore the full potential impact.

“We’re stepping up our efforts to encourage more employees to work remotely and we’re reshaping the way we work at manufacturing sites in highly impacted areas to ensure the health and safety of our people. At the same time, we of course want to safeguard the needs of our consumers and trade partners,” says Jonas Samuelson, President and CEO of Electrolux, in a press release.

The initial outbreak in China, where Electrolux sources significant volumes of finished products and components for all its business areas, has caused delays in deliveries, higher logistics costs and somewhat lower demand in East Asia in the first quarter 2020. However, the company says that it has worked to mitigate the impact and the situation among Chinese suppliers is now steadily improving. Based on these developments, Electrolux does not currently expect material effects from this alone going forward.

The coronavirus outbreak in northern Italy is also impacting the Electrolux Group. Electrolux consumer business has five manufacturing sites in Italy, accounting for around one quarter of its European production volume and approximately 10% of global volumes. Furthermore, Electrolux purchases components for sites across Europe, but also other parts of the world from suppliers in northern Italy. This of course translates to that there may be supply chain disturbances because of temporarily reduced industrial activity in the region.

Electrolux says that it from the very beginning took extensive measures in Italy to ensure the health and safety of its employees, and the spread of the coronavirus has not yet caused major disruptions to its operations in the country. The situation is however developing rapidly, and the company has now implemented additional measures to adapt manufacturing in Italy to a reduced production pace.

The reduced pace will also adapt the output of products to be more in line with expected sales volumes in the near future.

Electrolux operations in France has also been hit heavily by the pandemic. Since March 15, 2020, for example, French authorities have increased their countermeasures, and Electrolux Professional has started to experience difficulties in receiving components to, as well as in the outbound flow of products, its manufacturing units in France. As a response to this the company is implementing additional measures to adapt manufacturing at the affected sites to reduce production, including temporary closures.

Electrolux has developed a new intelligent induction hob with SenseBoil® technology

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Electrolux has developed a new intelligent induction hob with SenseBoil® technology, which simplifies every cooking activity. In the two sizes of 60 and 80 cm wide, the SenseBoil® hob offers a significant flexibility: through the special sensor present in the 4 Infinite cooking zones, it perceives the vibrations of boiling water and automatically adjusts the level of heat, avoiding spills from the pot.
For greater flexibility and efficiency, the Bridge function connects two different cooking zones into a larger one, allowing the use of pans of any shape and size. Moreover, at the touch of a slider command on the digital display, the PowerSlide function activates three preset temperature levels (high, medium, low) so as to easily slide the pan from the warmest to the coldest area without the need to manually manage the power. Anyway, the hob ensures extreme cooking precision thanks to the heat system adjustable up to 14 levels. The model also features the Hob2Hood technology that connects the hood to the hob with the integrated wireless connection, automatically activating and adjusting the first according to the intensity of use of the hob: the environment will always be fresh and free of odors.
Finally, thanks to the Stop+Go program, what is cooked does not cool down because the cooking zones are automatically adjusted to the “keeping warm” level. In addition, the Child Safety function blocks the ignition and controls, preventing any intervention by children.
The Electrolux SenseBoil® hob also ensures energy efficiency, because it is possible to regulate the energy absorption from 1.5 kW to 7.2 kW.

Electrolux smart ovens

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Remotely or with a voice command, the new ovens help prepare the perfect dinner, controlling all settings in total autonomy to ensure extraordinary results every day.

The integrated CookView® camera of the SteamPro oven transmits images in real time on any mobile device to control cooking the dishes, alerting you when the process is over and the food is cooked to perfection.

To create new dishes and live new experiences, the exclusive VarioGuide recipe book , containing from 180 to 260 preset recipes, indicates the ingredients to buy and the steps to be performed, allowing you to easily prepare Chef’s dishes. Moreover, with the Electrolux ovens it is possible to cook the whole menu flow in half the traditional time: the larger internal cavity and the new UltraFanPlus ventilation system , in fact, allow you to cook up to three levels simultaneously, without fear of mixing flavors and smells.

And to make the preparation of a perfect dinner even more magical, the Connected Cooking personal assistant starts cooking, sets and adjusts the best program for each food, via remote connection or voice command thanks to Google Assistant , leaving more free time for to chill out. Moreover, with the new Innit Platform Connected Food application , it is possible to personalize each recipe of your meal, to experiment with new flavors and ingredients, adapting them also based on nutritional objectives: a complete experience between taste and connectivity that saves time and spend unique moments in the kitchen.

Electrolux innovations are not just about the smart home: ovens are a real ally in the kitchen thanks to the many functions that help the user in every phase, ensuring perfect performance every time. The Steamify® technology makes the creation of healthy and extraordinary dishes easier and more intuitive, whatever the level of difficulty of the recipe. Through the Touch Control interface , it is possible to select the dish to be cooked and the type of cooking desired and the oven automatically combines the most suitable amount of steam, enhancing the taste and flavor of each ingredient. And to satisfy even the most demanding palates, with perfect cooking like in the best restaurant, the integrated FoodProbe temperature sensor measures the temperature directly at the core of the food with absolute precision and, once the desired cooking has been completed, emits a sound signal that automatically interrupts it.

The oven with integrated connectivity is available in the new MATTE RANGE line , distinguished by a completely matt finish, ideal to fit with elegance in the most modern and sought-after kitchens

Electrolux

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Following a strategic overview started earlier this year, Electrolux announced the beginning of a plan to improve efficiency throughout the Group. Among the main operations that the company will undertaken, there is the outsource parts of its current manufacturing in Hungary and investments in its Nyíregyháza refrigerator plant. The efficiency measures and redundancies related to the outsourcing will lead to restructuring charges in the third quarter 2019 of approximately SEK 1.6 billion. Moreover, Electrolux on January 31 announced an intention to spin off its Professional Products business area as a separate company and communicated a plan to sharpen the consumer organization and accelerate profitable growth by creating four regionally focused business areas and reorganizing key global functions. As the strategic overview related to these activities has progressed, Electrolux has now identified opportunities to improve efficiency in both the consumer and professional organizations. As previously communicated, Electrolux is also currently carrying out a manufacturing investment program, totaling SEK 8 billion during 4-5 years as from 2018, to strengthen competitiveness and drive profitable growth. As part of this, the company has decided to invest approx. EUR 100 million in automation, digitalization and innovation capabilities in its production of high-end refrigerators in Nyíregyháza, Hungary. Furthermore, in the review of the overall competitiveness of the manufacturing operations in Hungary, Electrolux has decided to outsource production of vacuum cleaners from its Jászberény facility, and a significant part of the freestanding refrigerators currently produced there. This is anticipated to impact approximately 800 production employees, and relevant union consultations will take place.
The measures announced today are anticipated to generate additional annual savings of about SEK 500 million, with full effect as from 2022.