Electrolux Net Falls 15 Percent in Q3
STOCKHOLM-Net income for AB Electrolux was $189.7 million in the third quarter, down 15 percent from the manufacturer's bottom line in the 2009 third quarter after currency conversion.
Net sales for the global consumer-products manufacturer totaled $3.6 billion in the quarter, off 4.6 percent from last year's third quarter. This included a 4 percent decline in net sales for the company's consumer durables in North America. In addition, North American operating profit fell 38 percent, driven down by higher raw-materials costs, price promotions and decreased sales and operating income for the company's floor-care products in North America.
Hans Straberg, the company's president and chief executive officer, said Electrolux's performance in North America in the third quarter came off a "very strong" second quarter, which occurred thanks to government sponsored rebate programs for energy-efficient appliance purchases. This brought a drop in demand in North America in the third quarter, Straberg said.
Globally, Electrolux's third-quarter results included a 114 basis-point improvement in gross margin to 23 percent. Selling expenses rose 13 percent, while administrative expenses slipped 2.9 percent.