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.
Arçelik, the global household appliances manufacturer and parent company of 12 leading home appliance brands, including two of Europe’s well known brands, Beko and Grundig, keynoted at IFA 2022 calling for sector-wide action to tackle climate change.
In his keynote speech, Mr Bulgurlu spoke of the challenge facing the corporate world, highlighting that rising business innovation has led to more consumption, thus contributing to environmental stress. Mr Bulgurlu believes that getting this balance right is the purpose of innovation, to create tailored technological solutions to the world’s environmental challenges. The clean energy transition, the development of regulated, transparent carbon markets, and the phasing out of coal by 2050 were all stressed as essential climate actions the world needs to take if it is to stand any chance of keeping the 1.5C goal alive.
Arçelik’s CEO spoke proudly of the corporation’s steely focus on hitting many ambitious climate targets, imploring that the 2050 target date for Net Zero is not an abstract international exercise, but about the lives of every living species on the planet.
Protecting water supply has never been more urgent in a warming world
The event also saw Arçelik launch a new technology designed to tackle household water waste. The new cutting edge SaveWater technology in dishwasher and tumble dryer-washing machine couple, unveiled exclusively for the first time at IFA Berlin, has been crafted to provide perfect cleaning, while helping households use water more efficiently. The enhanced dishwasher technology saves the last rinsing water in the cycle to be used in the beginning of the next wash. While the SaveWater technology in the tumble dryer-washing machine couple saves up to 5.2 litres of water per load, the dishwasher uses only 6.9 litres of water to wash a full load with 16 place settings capacity, saving 2.6 litres of water every wash whilst offering the lowest water consumption in the Beko range. Developed with water efficiency at heart, the new SaveWater line by Beko gives back a total of up to 7.8 litres of water at every cycle, to you and the world*.
In addition to championing resource efficient innovations, Arçelik also leverages the latest technologies across its own production operations to identify water risks and increase efficiency. Over the past 12 years, Arçelik has saved 2.17 million cubic metres of water, equivalent to the daily water consumption of approximately 2.7 million Turkish households.
Additionally, Arçelik collaborates with both global and local partners, to engage communities and promote sustainable water management. This year, Arçelik is proud to commence its partnership with Water.org, to fund water access projects in Kenya to empower local communities and make a lasting impact to provide water and sanitation solutions.
Hakan Bulgurlu, Chief Executive Officer, Arçelik, said: “Our planet is in a state of climate emergency. Humanity stands at a crossroads in the history of our planet that will define us as a generation of doers or naysayers. At a time like this, sustainability should be a mandatory business model and not merely a cost driver.
“All of us in this industry need to prioritise innovation and commit to inventing technologies that make a real difference to energy, water, and environmental issues.
“At Arçelik we want to use our global status and resources to drive the international agenda for climate protection, greater product efficiencies, and durability to help us all get richer, without making our planet far poorer. The SaveWater product line demonstrates our ambition to be the world’s most sustainable brand and embrace innovative technologies that will benefit people across the world.
“It’s time to step up to the challenge, the reward for our collective climate action will be our security as a viable industry operating in stable markets
where people are free to grow their businesses, their families, and their communities without the risk of climate catastrophe looming large on the horizon.”
Arçelik is constantly innovating to meet the challenges of the 21st century, from resource efficiency to waste management and recycling. This also includes its approach to environmentally-friendly packaging alternatives. In 2021, Arçelik used 324 tons of 100% recycled and recyclable cardboard and 40 tons of molded pulp instead of EPS in the cooker, hood, small domestic appliances, and consumer electronics categories. Arçelik is the first home appliance manufacturer worldwide to offer a major domestic appliances line-up with EPS-free packaging.
These far-reaching commitments and actions have earned Arçelik important industry accolades, including being listed as the first and only Turkish manufacturer in the Dow Jones Sustainability Index for the third year in a row and acknowledged by the FTSE4Good and BIST Indexes
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.
Imagine getting step-by-step instructions across recipes and appliances, suggesting the easiest and fastest options for preparing different recipes based on your preferences simultaneously with the appliances that you own.
“That’s our door into the digital future and we are going to storm it!” says Johannes Ochsner, BSH Smart Cooking Lead Program Manager, who shares his outlook of a new and seamless kitchen of the future.
To find out which appliances and digital innovations Bosch have in store for the #smartkitchen, stay tuned and check out BSH brands’ IFA presentations in Berlin!
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.
Luxury appliance brand, Kaiser will be showcasing its distinctive collection of appliances at the renowned IFA exhibition in Berlin. Taking place between 2nd – 6th September 2022, this year’s IFA is set to be packed full of the latest innovations and is an opportunity for retailers to see the best technology, and finest designs, in home appliances.
Kaiser was introduced to the UK market in January 2022. IFA provides a great opportunity for UK independent kitchen specialists to familiarise themselves with the brand and meet the team for the very first time. With ranges boasting handles finished in antique brass, and even leather, Kaiser appliances are designed to make a statement in the home. In addition to their unique attributes, the latest appliances available from Kaiser benefit from innovative technologies and robust German engineering to ensure exceptional functionality and longevity.
Visitors to the Kaiser stand at IFA will have the opportunity to see the classical-style appliances that form the award-winning Art Deco and Empire ranges, as well as the contemporary Avantgarde Pro and Grand Chef ranges. The Art Deco collection perfectly captures a neoclassical style, complementing the most luxurious homes for consumers with a well-defined taste for vintage styling, while the Empire range boasts a rustic design and robust German engineering. By contrast, the Avantgarde Pro range is designed for the professional home chef whose priorities are durability and functionality. Finally, the Grand Chef range is at the forefront of modern appliance technology, including a built-in oven complete with air-fryer technology to release the consumer’s inner chef.
First-half sales: €3,666m; +1.6%, -2.3% LFL* Second quarter sales: €1,750m; -0.4%, -5.1% LFL* First-half Operating Result from Activity (ORFA): €199m, -€121m vs 2021 Second quarter ORFA: €59m; -€63m vs 2021 Profit attributable to owners of the parent: €72m, -€79m vs 2021 Net financial debt at June 30, 2022: €2,447m, up €597m vs June 30, 2021 (inventory building to address supply chain tensions) Full-year assumptions revised: Overall stable 2022 sales vs 2021 Operating margin from activity in the range of 8% to 8.5% * LFL: like-for-like (at constant exchange rates and scope) – Changes vs 2021. 2022 started in a favorable environment, which deteriorated in the second quarter, with the war ongoing in Ukraine, currency volatility and the acceleration in inflation. Sales were resilient, driven by an excellent performance in China and by the solid momentum in the Professional business. As in 2021, the Group absorbs the impact of headwinds while the operating profitability is temporarily hit by the combined effect of the slowdown in second-quarter business in Europe and the continuation of investments already undertaken. We keep on fueling our growth pillars: China, where we will exceed €2bn revenue this year, with great development prospects ahead; the Professional activity which is paving the way for new buoyant and profitable markets; innovation and digitization, which represent fundamentals in our businesses. We do not expect any significant improvement in the economic situation before year-end in mature countries. This leads us to target for the full year overall stable sales and an operating margin in the range of 8% to 8.5%. I know I can count on the commitment and agility of our teams throughout the world to pursue our strategy of profitable growth. Stanislas DE GRAMONT, Chief Executive Officer of Groupe SEB
Grundig expanding its sustainable product range, offering a solution to avoid microplastics in the water: the world’s first washing machines with built-in microplastic filter. The new technology filters up to 90% of textile microfibres from the washing water before they enter the wastewater and pollute the environment.With every wash, clothing and textiles release up to 3,000 fibres that reach our rivers, lakes and seas via wastewater. There, the microfibres are taken up by fish and other marine creatures, entering the food chain and ending up on our plates.
Grundig wants to stop this pollution cycle and brings the first washing machines with an integrated microplastic filter.
The first Grundig washing machines available with built-in microplastic filter technology are the models GW7P79419W for 9kg laundry and the 10kg model, GW7P510419W. The filter is located in the detergent compartment and is automatically activated in the Easy Care, Shirts and Outdoor/ Sport programmes. Several times during the washing cycle, the water is passed through the microplastic filter before it is pumped into the wastewater. Up to 90% of the synthetic microfibers are collected from the washing water inside the filter.
Growing by 20% in 2021, the Chinese group had a turnover of about 50 billion euros last year and invested over 7 billion in the last five years in Research and Development.
Midea in 245th place among the Fortune 500 Growing by 20% in 2021, the Chinese group had a turnover of about 50 billion euros last year and invested over 7 billion in the last five years in Research and Development.
Midea in 245th place among the Fortune 500 Midea climbs to 245th place in the 2022 version of the ranking of the world’s 500 largest companies drawn up annually by Fortune. The turnover of the Chinese group grew by 20.06% in 2021, reaching an all-time high of 343.4 billion yuan, equal to about 50 billion euros at the current exchange rate.
As reported in a press release from the group , Midea pursues the goal of “Technological Leadership” and accelerates its transformation based on technology in all sectors of intervention. In the home appliance under the banner of the ‘smart home’ you are committed to providing the best experience of appliances and services for the whole home through the use of IoT and AI technology.
The Midea Group employs 160,000 people, of which over 30,000 are outside China. Over the past five years, Midea has invested nearly 50 billion yuan (7.2 billion euros) in research and development and has 35 research and development centers and as many manufacturing bases around the world. Midea products and services are used and appreciated by 400 million consumers in over 200 countries and regions.