Electrolux N.A. Majap Sales Rise 16%
By Jeff Malester -- TWICE, 5/8/2006
Stockholm, Sweden — Strong sales growth of major appliances helped Electrolux post $1.2 billion in consumer durables revenue in North America during the first quarter, up 16 percent from the $950.1 million recorded in the year-ago three months. Consumer durables consist mainly of majaps.
Operating income for consumer durables in North America climbed to $28.2 million in the first quarter, ended March 31, compared with $22.3 million in the same period the prior year.
Industry shipments of core appliances in the United States rose by 7.9 percent in the first quarter, up from the first quarter in 2005, said Electrolux, while shipments of majaps, including room air and microwave ovens, rose 21.5 percent.
The company expects demand for appliances in North America in 2006 to show some growth. Efforts to strengthen its competitive position through investments in product development and in building the Electrolux brand will continue, said the company.
Consolidated Electrolux first-quarter sales jumped 14 percent, hitting $4.5 billion, up from $3.9 billion year-on-year.
Operating income increased 5.8 percent to $183.3 million, compared with $173.3 million in the same three months the previous year. Operating income in the first quarter of 2006, excluding items affecting comparability, reached $202.5 million.
Consolidated net income decreased to $106.9 million in the first quarter, down 5.5 percent from a year-on-year $113.1 million.
However, excluding items affecting comparability, net income for the first three months of 2006 rose to $126.1 million. The company blamed the decrease, in part, to a lengthy strike at a plant in Germany, and eventual closing of the plant, for which it took a $19.2 million restructuring charge.
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