Electrolux Net Dives 28.9 Percent in Q3
October 28, 2013,
STOCKHOLM-Although the company made progress in cutting expenses, Electrolux's third-quarter net income fell 28.9 percent to SEK656 million ($100.1 million).
Gross margin for the housewares giant dropped by 185 basis points to 19.4 percent. In addition, net sales in the quarter, which ended on Sept. 30, rose by a meager 0.3 percent to SEK27.3 billion ($4.2 billion). Operating expenses did fall 3.3 percent in Swedish krona and 57 basis points as a percentage of sales, to 15.4 percent.
Electrolux North America turned in a strong third quarter. Driven by volume growth in core appliances, sales in North America rose 8 percent. Keith McLoughlin, president and CEO, said sales in North America benefited from favorable market development, new distribution channels and a positive product mix. "The housing market recovery continues to stimulate appliance demand, and we are therefore raising our estimate for demand in the U.S. to increase by 7-9 percent for the full year of 2013," McLoughlin said.
"The difficult measures ... combined with our strategic focus on growth in emerging markets and increased consumer-relevant product innovations make us convinced that Electrolux is well positioned to meet and exceed our long-term key financial targets," McLoughlin said.