Electrolux Net Plummets 50 Percent in First Quarter
STOCKHOLM-First quarter net income for Electrolux totaled $70.4 million, about 50 percent down from the company's net from last year's first quarter, according to a preliminary statement on the period.
Net sales for the quarter, which ended on March 31, declined 7 percent to $3.6 billion. Keith McLoughlin, president and CEO, said Electrolux's profitability in North America was hurt by rising raw materials costs and pressure on prices. "Our ambition is to gradually compensate for the increase in costs through price increases, improvements in product mix and cost savings," McLoughlin said.
Net sales in Electrolux's newly formed Small Appliances unit (consisting of small domestic appliances and floor-care products) were flat in the first quarter, while operating income--again, because of spikes in costs and pricing pressures in several markets--dropped 46 percent. McLoughlin cited this segment as one that has strong potential for growth down the road.