Electrolux sales driven by improved product mix in Q1

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The Swedish home appliances group Electrolux reports strong organic sales growth in the first quarter of 2014, mainly driven by improved product mix, said the company in a statement on Friday.

Electrolux achieved organic sales growth totaling 4.5 percent for the quarter, following a long period of decline, according to the statement.

During the first quarter this year, the results for the European operations recovered, driven by an improved product mix and lower costs while the market has stabilized and demand increased in several major markets, such as Germany, France and Italy.

Besides, the company expects the European market's demand to increase by one to three percent in 2014.

Meanwhile, the organic sales growth of the company in Latin America reached close to 15 percent in the first quarter, primarily driven by price increases and mix improvements, which compensated for continued currency headwinds.

Furthermore, despite the negative impact on the volumes by severe weather in North America in the first quarter, the company's mix is expected to continue to improve with a strong focus on the premium segments, while market demand for appliances in the United State is expected to grow by four percent in 2014.

"Through price and mix improvements, we continue to mitigate currency headwinds. In parallel, efforts to reduce costs and optimize our global production structure continue," said Keith McLoughlin, President and CEO of Electrolux in the statement.

"Combined with our work to further speed-up the pace of innovative product launches in the market, this provides us with the foundation for profitable growth," McLoughlin added.

Electrolux Group, headquartered in Stockholm, sells more than 50 million products to customers in more than 150 markets every year.

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