Electrolux North America Prospers in Fiscal Year, Q4
Posted on January 31, 2014 by
STOCKHOLM-With demand for major appliances swinging sharply upward, Electrolux North America posted a 52 percent increase in operating income for the fiscal year ending on Dec. 31, to $327.4 million.
Net income for the fourth quarter totaled $69.4 million, up 37 percent from the fourth quarter of fiscal 2012. Net sales for the North American operation were up 7 percent in the quarter, to $1.2 billion, marking the eighth consecutive quarter of profitable sales growth, according to an Electrolux spokesman. For the year, net sales totaled $4.9 billion, up 7 percent from the prior year.
Keith McLoughlin, president and CEO of parent Electrolux, cited the North American appliance business as an area of particular strength for the parent company. "North America recorded another quarter of strong organic sales growth of close to 8 percent," McLoughlin said. "Earnings in the quarter remained on a high level."
McLoughlin also noted that small appliances posted strong fourth-quarter results throughout the world, the result of "successful product launches, cost reductions and the strong sales momentum in emerging markets."
For the company as a whole, fourth-quarter net income was SEK1.1 billion ($166.9 million), down 4 percent from last year's fourth quarter, bringing the total for the year to SEK2.8 billion ($430.6 million), down 14 percent. Net sales for the quarter slipped 1 percent to SEK28.9 billion ($4.4 billion), while for the year net sales were SEK109.2 billion ($16.7 billion) down 1 percent.
"Our ambition to increase our rate of new product launches and expand our market coverage, combined with our consumer insight work, is paying off in terms of both sales growth and market share," McLoughlin said. "Our strategy has paid off over the past two years with a growth trajectory that hasn't been seen in (the company) for many years."