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Electrolux Q2 Sales, Earnings Surge


hikes within its North America segment
helped lift Electrolux’s second-quarter

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).