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.