- Hans Stråberg, CEO of Electrolux. Photo courtesy of Electrolux.
Profitability improved overall for the Swedish appliance giant Electrolux during its second quarter. And the results from the U.S. market was especially good. “In North America, we have improved our product mix due to the fact that we have successfully increased sales and gained market shares under our own strong Electrolux and Frigidaire brands,” Hans Stråberg, CEO of Electrolux said in a statement on July 19th.
“I am especially satisfied with the performance in North America considering the fact that we had extra costs amounting to about SEK 200m in the quarter related to the re-launch of Frigidaire and the consolidation of the Group’s North American headquarters to Charlotte.”
Electrolux, which is the world’s second largest manufacturer of ”white goods” is optimistic, but Hans Stråberg hedges that “there is still great uncertainty and many things can happen in the remaining part of the year.” He still hopes to “approach our goal of an operating margin of 6 percent with continued improved capital efficiency” in 2010.
When it comes to the U.S. results, part of the explanation is the Obama government’s rebate program. “The US government rebates to stimulate sales of energy-efficient products have contributed to strong growth, especially in the month of April. I think there is a learning for other countries on how to reduce energy-consumption in an efficient way. I also believe we will see a continued growth in North America in the coming years, as many American consumers need to replace their old appliances, which are beginning to reach the end of their life cycles,” he said.
Currents Magazine No. 2-3/2009 interviewed Henrik Sundström, head of CSR and Environmental Affairs at Electrolux.
Click here to read the interrview!
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