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Electrolux U.S. Majaps Shipments Up 3.8%

10/25/2005 08:24:00 AM Eastern

Stockholm, Sweden — Industry shipments of core appliances to the United States increased by 3.8 percent in the third quarter, helping major appliances maker Electrolux post $1.2 billion in North American sales of indoor products, previously called consumer durables, compared with $1 billion in the year-ago third quarter.

As of the first quarter of 2005, the Electrolux reporting structure had been changed, so the consumer durables business now is more generally called indoor products.

Electrolux said group sales of majaps in North America increased substantially in most categories. Core appliances in the indoor products sector include majaps.

Operating income for the North American indoor products business at Electrolux in the third quarter, ended Sept. 30, showed strong improvement, hitting $36.4 million, compared with $21.9 million year-on-year. These results were due to higher volumes, implemented price increases and a more favorable product mix, said the company.

Operating margin for North American indoor products in the quarter rose to 3 percent, up from 2.2 percent in the third quarter of 2004.

Industry shipments of core appliances in the United States edged upward 1.8 percent for the nine months at Electrolux, with consumer sales to North America coming in at $3.2 billion, up from $2.9 billion in the same period the prior year.

Indoor products in North America recorded operating income of $101.5 million for the nine months, compared with $99.7 million in the same period last year. Operating margin was 3.2 percent for the nine months, compared with 3.4 percent year-over-year.

The volume/price/mix as well as changes in exchange rates boosted consolidated Electrolux sales for the third quarter by 8.5 percent, reaching $4 billion, compared with $3.7 billion in the same three months last year.

Consolidated operating income increased by 22.6 percent in the third quarter, excluding $115.9 million in items affecting comparability, rising to $214 million from a year-ago $174.6 million. Margin improved to 5.3 percent, from 4.7 percent in the three months.

Net income for the quarter, however, dropped by 78.2 percent, down to $19.2 million from a year-earlier $88.2 million.

For the nine months, consolidated Electrolux sales hit $12 billion, a 4.1 percent increase over the $11.6 billion reported in 2004.

Operating income, excluding items affecting comparability, slipped 7.8 percent to $615.9 million from a year-ago $668.3 million. Net income was off 12.3 percent to $276.9 million, from $315.6 million in the same nine months last year.