Electrolux Net Falls 64 Percent in Fourth Quarter

STOCKHOLM-Fourth-quarter net income for Electrolux took a 64 percent dive to $34 million, as the company continued to struggle in a weak and highly competitive appliance market worldwide.

Net sales for the final quarter of its fiscal year (using the average value of the U.S. dollar versus the Swedish krona for 2011 and 2010) increased 14 percent to $4.4 billion. However, the company saw its gross margin slashed by 355 basis points to 18.2 percent, driven downward by higher raw-materials costs. Operating expenses increased by 7 percent in dollar terms and 61 basis points as a percentage of sales, to 16.1 percent.

For the fiscal year as a whole, Electrolux's bottom line plummeted 43 percent to $317.9 million, despite a net sales gain of 5.9 percent to $15.6 billion.

Keith McLoughlin, president and CEO, said, "The headwinds of price pressure, higher raw-material costs and weak demand grew stronger as the year progressed." McLoughlin added that Electrolux is taking action to "increase prices, take out costs, acquire companies in emerging markets and change the organization to strengthen the company's position as we enter 2012."

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.


  • Patti Carpenter Talks Color and its Importance in the Home

    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 August 2017 cover


    August 2017

    COVER STORY: Sharpening the Focus on Millennials

    Find out what makes Millennials tick when it comes to home decorating, shopping and at-home entertaining with HFN's annual consumer study. Turns out, Millennials favor the in-store shopping experience.


    • Power of the People - Crowdfunding campaigns provide needed capital, feedback for home and housewares product launches.
    •  Omnichannel Retailing: Visual Search Takes Off - Learn how voice and visual search are revolutionizing product discovery.