Tag Archives: Electrolux

Electrolux raises market outlook after profit beats forecasts

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A pick-up in demand for fridges and washing machines amongst housebound buyers throughout the pandemic helped Electrolux beat earnings forecasts on Friday and submit its easiest quarterly margin ever.

The Swedish domestic equipment maker, whose competitors encompass Whirlpool, LG Electronics and Samsung Electronics, suffered early on in the coronavirus crisis, as lockdowns in various massive markets precipitated a sharp drop in demand and hit production.

“Sales additionally benefited from shoppers spending extra time at home, the usage of their home equipment extra intensively and allocating extra of their family budgets to domestic improvement,” CEO Jonas Samuelson stated in a statement.

The maker of manufacturers such as Frigidaire, Zanussi and Anova stated running revenue rose to 3.22 billion Swedish crowns ($367 million) from 1.06 billion, beating the 2.44 billion predicted by using analysts, Refinitiv Eikon records showed.

Net income rose to 32.0 billion crowns, with natural income growing by way of 15.2%, versus 30.9 billion predicted by way of analysts. Operating margin rose to 10.1%, the best ever quarterly margin for the firm.

Electrolux presents vacuum cleaner made of 100% recycled and reused materials

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Electrolux takes a new important step on the journey towards circularity with a prototype for change. Together with Stena Recycling, Electrolux has developed a vacuum cleaner made of 100 percent recycled and reused materials. The plastic and components originate from consumers electronic products, such as used hairdryers, vacuum cleaners and computers. The project addresses some of today’s key recycling challenges while exploring circularity in household appliances.

More than 400 million metric tons of plastic are produced globally every year, but less than 12% of this comes from recycled materials. Therefore manufacturers have difficulty finding enough safe and consistently high-quality recycled material. As a pioneer, Electrolux was first in the industry in 2010 to raise awareness about the global shortage of recycled plastics through the Vac from the Sea project. The volume of products containing recycled material has since increased across the industry but remain at low levels.

To step up the pace, Electrolux is partnering with Stena Recycling in the collaboration Circular Initiative. The goal is to learn more about how to make the market for recycled plastics function as well as for virgin materials. The first concrete result is a visionary vacuum cleaner made of 100 percent recycled plastic and reused components from electronic consumer products. The prototype is developed to explore circularity in household appliances.

“We at Electrolux have a strong commitment to reduce our climate impact by 2030 and circularity is a key dimension of this. The partnership with Stena Recycling is one of the important initiatives we engage in to push ourselves and the industry forward through knowledge sharing and innovation. We want to support consumers in making sustainable choices, and to succeed we need a solid approach to circularity”, says Jonas Samuelson, CEO at Electrolux.

Henrik Sundström, Head of Sustainability at Electrolux, adds: “This project has highlighted many of the considerations we take into account as we seek to become more circular. From product design and material use to new business models, there are regulatory requirements as well as quality and safety questions that need to be addressed. We have to strike a good balance in increasing the amount of reused and recycled materials when making products that are optimized for further recycling at the end of life”.

The material from used products such as hair dryers, vacuum cleaners and computers originates from Nordic households. The focus on consumer products has enabled the project to study the lifespan of the recycled products and components to gain insights about consumer recycling behaviors and attitudes.

“The Swedish industry has all the right conditions to become a pioneer in circular flows. We have the know-how, we have the technically advanced processing plants needed, and we have companies willing to take the lead in circular production. I’m proud of what we have achieved together in the partnership with Electrolux. It’s a crucial step towards a future where circular materials will play a significant role in manufacturing. Through the Circular Initiative we provide our expertise when collaborating with our partners to create world leading circular solutions”, says Kristofer Sundsgård, CEO at Stena Recycling.

By 2030 all Electrolux product ranges will contain at least 50% recycled materials. On the journey towards circularity, the learnings from developing the prototype will provide important knowledge for Electrolux future innovation.

Stena Recycling collects discarded electronic consumer products and breaks them down into raw materials for new products or for energy recovery. Read more about the Circular Initiative here.

The prototype vacuum cleaner is an action within the Electrolux Better Living Program, a plan to enable better and more sustainable living for consumers around the world through 2030.

Management change in AB Electrolux

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Electrolux today announced that Jan Brockmann, Chief Operations Officer and Executive Vice President of AB Electrolux, has decided to resign from his position to pursue an external opportunity.

Jan Brockmann will remain with the company until September 30, 2020. The succession planning has been initiated.

“I want to thank Jan for many important contributions during his 10 years with Electrolux. During his tenure, with a strong focus on developing a global approach to modularization and automation, Global Operations have driven outstanding efficiency, product quality and innovation at Electrolux,” said Jonas Samuelson, President and CEO of the Electrolux Group.

Jan Brockmann joined Electrolux in 2010 as Head of R&D Major Appliances and has been part of the Group’s management team since 2011, first as Chief Technology Officer and since 2015 in his current role.

LG to stay number one

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LG Electronics is relied upon to hold the No. 1 spot in the worldwide home apparatus showcase for the second successive quarter, flaunting its strong grasp in the division in the midst of the COVID-19 pandemic.

As per the business, LG Electronics second quarter income in the home apparatus area is anticipated to record between 5.2 trillion won to 5.3 trillion won. This is around 300 billion won more than the past pioneer, Whirlpool.

The U.S. home machine monster said it recorded 4.93 billion won deals in the subsequent quarter, down 22 percent contrasted with a similar period a year ago. Regardless of the decay, its presentation is better than many expected after the COVID-19 pandemic constrained the shutdown of gadgets retailers, for example, Best Buy in the United States.

LG is relied upon to beat Whirlpool for the second continuous quarter subsequent to outperforming it in the principal quarter by 255.7 billion won on income of 5.41 trillion won.

The underlying standpoint for LG Electronics’ Q2 execution was negative because of the pandemic; yet changed with the resumption of tasks at significant retail locations in the U.S. what’s more, Europe.

In the household showcase, LG gained by its recently discharged top of the line apparatuses including garments dryers, dishwashers and its steam attire care framework, “Styler.” Starting June, benefit rose with an expansion in deals of forced air systems.

Whirlpool just earned 94 billion won in working benefit among April and June, a sizeable drop contrasted with a similar period a year ago when it recorded 222.8 billion won.

Electrolux recorded lost 7.8 billion won in the subsequent quarter.

KB Securities gauges the Korean firm to record up to 650 billion won in benefit for the subsequent quarter.

In contrast to Whirlpool, whose working benefit fell 6 percent in the principal quarter and 1.9 percent in the second, LG Electronics is relied upon to save its benefit stable for a similar period.

Samsung Electronics is likewise expected to do well in the home apparatus area.

Hana Financial Investment predicts Samsung’s deals in the home and clinical apparatuses segment to arrive at 4.7 trillion won in the subsequent quarter, up 50 billion won from the first.

Samsung’s working benefit is required to bounce from 88 billion won to 293 billion prevailed upon a similar period.

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.