Advantageous exchange rates have helped Electrolux to an excellent fourth quarter in 2014. It managed an 8.7 % turnover increase for the previous quarter, while it expects a 3 - 5 % market growth in America and a 1 - 2 % growth in Europe for the full year.
Exchange rate boosts turnover
Swedish household appliance manufacturer Electrolux, which commercializes the Electrolux, AEG and Frigidaire brands, managed a 31.4 billion krona (3.4 billion euro) turnover in its fourth quarter, up 8.7 % compared to the same quarter last year.
It achieved 2 % autonomous growth, while 0.2 % came through acquisitions, but the bulk of the increase was because of advantageous exchange rates.
The full year turnover, thanks to its strong fourth quarter, reached 112.143 billion krona (12.1 billion euro), up 2.7 % compared to 2013.
Cheap production leads to growing profit
Higher sales and the fact that 70 % of its production was moved into countries with cheap labour, have also helped the company quite a bit. This combination actually means the company has taken advantage of the situation twice.
Fourth quarter operational profit reached 1.472 billion krona (158 million euro), 20 % above 2013's levels. For the full year, it is 4.78 billion krona (514 million euro), 18 % better than in 2013. Operational margins grew from 3.7 % in 2013 to 4.3 % in 2014, even reaching 4.7 % in its most recent quarter.