Stockholm, Sweden – Lower costs and an improved sales
mix helped Electrolux rebound from a year-ago loss in the fourth quarter.
Earnings rose to $87 million from last year’s $62 million loss,
while net sales slipped 1.6 percent to $3.7 billion for the three months ending
Dec. 31, 2009.
For the full year, profits soared more than 600 percent to $342
million and net sales rose 4.1 percent to $14.3 billion.
In North America, fourth-quarter operating income rose to $59
million following a year-ago loss of $5.6 million, despite rising raw materials
costs during the period and charges related to the relocation of corporate
operations to Charlotte, N.C., and laundry production to Juarez, Mexico, later
this year.
Net sales fell 12 percent in the fourth quarter to $1 billion due
to increased competition within the laundry category, the company said.
For the full year, North American operating income rocketed 565
percent to $193.4 million, and net sales rose 9 percent to $4.7 billion.
Despite a 14 percent decline in industry-wide unit shipments in
the U.S., president/CEO Hans Straberg described 2009 as one of the best
reporting periods ever for Electrolux thanks to lower raw materials costs,
greater cost efficiencies, and a higher sales mix of advanced, premium-priced
products that helped offset volume declines.
Straberg attributed the improved mix to last year’s relaunch of the
Frigidaire brand in the midprice segment, which followed “a very successful
launch” of the Electrolux brand in the premium-price tier that helped grow
market share in kitchen appliances.
Despite the upbeat report, Electrolux’s share price fell
following the earnings announcement due to lower-than-expected fourth-quarter
results and the company’s mixed outlook for 2010.
