STOCKHOLM, SWEDEN –
Price hikes within its North America segment helped lift Electrolux’s second-quarter results.
Net sales for the Swedish majap maker rose 15 percent, to 27.8 billion kronor, while net income increased 30 percent, to 763 million kronor, for the three months, ended June 30.
Earnings continued to be impacted by higher raw material costs but were offset by improved operational efficiency, the company said.
Net sales in North America, the company’s largest market, grew 14 percent, to 8.2 billion kronor, on higher selling prices and favorable exchange rates, despite lower unit volume. Electrolux passed sequential price hikes along to U.S. retailers in February 2012 and April and August of last year, and said it gained market share in key majap categories during the quarter.
Despite higher raw material costs, operating income skyrocketed 271 percent, to 512 million kronor, on improved manufacturing and supply chain efficiencies and more selective promotions.
“The Electrolux appliance business in North America significantly improved its operating income,” president/CEO Keith McLoughlin said in statement. “The most important factors for the strong result were price increases and operational efficiency. As we go forward, we expect the North American appliance market to show modest growth as the housing market gradually recovers.”
During the quarter the company announced that The Home Depot will begin selling its Electrolux, Frigidaire Gallery and Frigidaire brand ovens, refrigerators, freezers, dishwashers and laundry pairs in a staged U.S. rollout (see TWICE, July 16, page 6).