OZ Electrolux Sales Contribute To Return To Profits Claims CEO
Net income for the Swedish Appliance Company was A$147 million kronor for the three months, ended Dec. 31, compared with a year-ago loss of A $140 million.
The strong result comes as Electrolux prepares to integrate the General Electric appliances business into Electrolux following the $3 Billion dollar acquisition of the US appliance maker late last year.
Chief Executive Keith McLoughlin said in a statement that cost savings, combined with higher efficiency in production and active product portfolio management, led to a significant improvement in operating income.
He also said that an increase in sales in Australia had contributed to the Company’s bottom line.
“Demand in Australia was up during the fourth quarter but Southeast Asia and China continued to decline” he said.
Market demand in Europe increased by 2% in the fourth quarter and Mr. McLoughlin said it is expected to grow by 1% to 2% in 2015.
“As in the third quarter, earnings were negatively impacted by the major transition required to meet new energy standards which affect refrigeration and freezers. We expect continued impact from this transition process also in the first half of 2015,” Mr. McLoughlin said.