North American strengths buoys Electrolux Q1
Electrolux reported net sales decreased 2% to $25.3 million compared with the same period last year. On an organic basis, adjusted for acquisitions, divestments and changes in exchange rates, sales increased 3.8% compared with the same period last year.
Despite weak market conditions in Europe, the company’s North American appliance business generated strong sales and earnings growth. Sales in North America were $1.2 billion, a 12% increase from first quarter of last year. This performance was primarily driven by higher sales volume of core appliances, room air conditioners, and consumable products.
“As we have discussed in the past, Electrolux has globally diversified its revenue base, whereas 70% of sales are generated from regions outside Europe. Nevertheless, we are unquestionably impacted by the challenging market trend we are seeing in all of our product categories in Europe (Major Appliances, Professional Products and Small Appliances). Results in Europe were impacted by a negative country mix as demand in Southern Europe, France, Germany and the Benelux countries weakened during the quarter,” said Electrolux president and CEO Keith McLoughlin.
McLoughlin believes that demand in Europe will eventually rebound and the company’s sales will be bolstered by the stronger North American market as well as continued strong growth in the company’s emerging markets.