Electrolux benefits from exchange rates | RetailDetail

Electrolux benefits from exchange rates

Electrolux benefits from exchange rates

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.

Questions or comments? Please feel free to contact the editors


Ceconomy sells its Russian division

21/06/2018

Ceconomy, MediaMarkt's parent company, has sold its onerous Russian division to local electronics chain M.video. The German electronics giant does not quit Russia altogether however, as it continues as shareholder of M.video.

LVMH's Bernard Arnault invests in refurbished phones

14/06/2018

BackMarket, a French start-up that wants to be a marketplace for refurbished smart phones, tablets and laptops, has secured a 41 million euro investment. The most famous new investor is Bernard Arnault, CEO of luxury group LVMH.

Coolblue closes hundreds of web shops

11/06/2018

Dutch e-commerce group Coolblue has terminated hundreds of its web shops, instead preferring one central web shop at coolblue.be/nl. This may be the precursor to an international expansion, the company says.

Xiaomi's European conquest goes through Paris

23/05/2018

Chinese smartphone manufacturer Xiaomi just opened a physical store in Paris, part of its ambitious European expansion plan. The brand is also dreaming of an American launch.

Fnac Darty and MediaMarkt Saturn enter purchase alliance

16/05/2018

French electronics retailer Fnac Darty has set up a purchase alliance with competitor MediaMarkt Saturn. Both companies will buy together when it comes to the European retail market.

Amazon looking to outbid Walmart in Flipkart deal

03/05/2018

The battle for dominance on the Indian e-commerce market seems to be stepping up a notch: Amazon may be looking to buy a majority stake in Flipkart, trying to better Walmart which already started negociations with the Indian online retailer.