Electrolux Net Falls 33 Percent in Third Quarter

STOCKHOLM--Third-quarter net income for Electrolux dropped 33 percent on a dollar basis, to $127.7 million, according to a preliminary report from the appliances giant.

The bottom line tinged redder in spite of a sales gain of 9.4 percent in dollars to $4 billion. Keith McLoughlin, Electrolux's president and CEO, cited rising costs for raw materials and reduced product prices. "Aside from continuing to improve price and mix, we must accelerate our efforts to adapt our cost structure," McLoughlin said.

He added that Electrolux "has been tangibly affected by the decline in consumer confidence in the mature markets," most notably in North America and Western Europe. The company expects unit volume sales of 35 million appliances in North America this year, down 25 percent from the peak year in unit sales of 2005.

Looking ahead, the company is hoping that its efforts to reduce costs and improve efficiencies "will start generating a positive impact in an escalating pace," McLoughlin said.

HFN Staff | News & Commentary

HFN provides detailed information on the key home classifications: Housewares, Tabletop, Floor Covering & Rugs, Furniture, Home Textiles, Lighting, Home Decor, Mattresses & Bedding, Gifts, Major Appliances and Consumer Electronics as well as Business, Finance and Retail.


  • Von Tobel Cites Brass Textures Among Top Trends

    Camera Icon   More Videos

Subscribe to
HFN Omnichannel
Receive the news you need to know about the trends in the industry delivered right to your inbox.

Current Issue

  • HFN cover for September 2017


    September 2017


    2017 State of the Industry Report
    Cautious Optimism, Mixed Results

    Many expected 2016 would be a banner year, but the political and economic climate softened consumer confidence. It was also a year consumers spent more lavishly on home remodeling rather than decorating.


    •  TJX Unveils First U.S. Homesense Store - In a time when retailers are reducing store counts, TJX continues to get physical.
    •   Ikea’s Fluid Spaces - The retailer’s new intros reflect multifunctional rooms.
    •  N.Y. Home Fashions Market Preview - Textile textures get soft and cozy, colors warmer.