Electrolux Net Jumps 32.1 Percent in Fourth Quarter, 25.9 Percent for Year

STOCKHOLM-Improvements in the sales mix along with a watchful eye on expenses bolstered Electrolux's bottom line in the fourth quarter ending on Dec. 31.

The multinational manufacturer posted a 32.1 percent gain in net income to SK292 million. Translated to U.S. dollars, Electrolux's bottom line totaled $43.2 million, up 30.4 percent. For all of 2012, net income gained 25.9 percent to SK2.6 billion--$400.3 million, up 31 percent in U.S. dollars.

The company accomplished this despite a tepid sales gain of 2.9 percent to SK29.2 billion ($4.3 billion, up 1.5 percent). Reflecting the gain in price/mix, gross margin in the quarter rose 319 basis points to 21.4 percent. Selling, general and administrative expenses rose 1.1 percent in the Swedish currency but dropped 27 basis points as a percentage of sales, to 15.8 percent.

Keith McLoughlin, Electrolux's president and CEO, cited the North American market as a strong contributor in terms of sales and price/mix. "Operations in North America reported yet another quarter of volume growth, thereby yielding an improved market share for the full year 2012," McLoughlin said. He added that, at present, the Americas now account for more than 50 percent of the company's total sales, up from 35 percent five years ago.

For the year as a whole, net sales increased 8.3 percent to SK110 billion. In U.S. dollars, sales were up 12.7 percent to $16.9 billion.

McLoughlin said North America should continue to strengthen as a market for Electrolux products. "We anticipate growth in the North American market in 2013, supported by a gradual recovery in the housing market," he 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.

Videos

  • 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

    HFN's DIGITAL EDITION

    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.


    ALSO IN THIS ISSUE:

    • 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.