Vacuum Cleaners Discussions |
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CarmineD
Joined: Dec 31, 2007
Points: 5894
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Re: Research . . .
Reply #32 Aug 18, 2009 8:05 am |
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About Electrolux sales/profits for Q2 2009 from the Wall Street Journal 7/17/09. Carmine D. Electrolux Reaps Benefit of Year-Ago Cost Cutting STOCKHOLM -- Appliance maker Electrolux AB reported a sharp rise in second-quarter net profit Thursday, after restructuring costs weighed on year-earlier results, and said the U.S. market was showing early signs of recovery. Net profit jumped to 658 million Swedish kronor ($84.8 million) from 99 million kronor a year earlier, when it booked restructuring costs of 539 million kronor. Savings initiatives and lower raw-material costs helped push up its bottom line. Higher prices for Electrolux's products and the weakness of the Swedish krona against the dollar and euro, meanwhile, helped lift revenue 7.4% to 27.48 billion kronor from 25.59 billion kronor. The company reaped benefits from a shift in production to lower-cost countries, where it has increased efficiencies and lowered its purchasing and product costs. Electrolux launched a restructuring program in 2004 that aims to save 3 billion kronor in annual costs. In December, it said it would lay off more than 3,000 staff, or about 5% of its work force. Electrolux, known for its vacuums, shown on display in Sweden, is seeing signs of a market bottom in North America. The company reaped benefits from a shift in production to lower-cost countries, where it has increased efficiencies and lowered its purchasing and product costs. Electrolux launched a restructuring program in 2004 that aims to save 3 billion kronor in annual costs. In December, it said it would lay off more than 3,000 staff, or about 5% of its work force. Most of the company's main markets for appliances continued to show a decline in the second quarter of 2009, Electrolux said. "There are no indications of an immediate improvement in any of the group's main markets, and, therefore, market demand for appliances around the world is expected to decline further in 2009," the company said in a statement. Still, Electrolux said it had gained market share in North America, Latin America and Australia. "In North America we see certain early signs that we are beginning to reach the bottom," Chief Executive Hans Straaberg said in a statement. Even though the number of refrigerators, dishwashers, vacuum cleaners and other products the company delivered in North America fell 14% in the second quarter, the decline was an improvement on the 16% drop recorded in the first quarter. Electrolux -- one of the world's largest manufacturers of household appliances after Whirlpool Corp. -- owns the Electrolux, AEG-Electrolux, Zanussi, Eureka and Frigidaire brands. Shipments to North America have fallen for 12 consecutive quarters, and in Europe for six quarters. The two markets account for almost three-quarters of Electrolux's sales. The Swedish appliance maker's cautiously optimistic comments on the U.S. offer further evidence that the worst of the recession in the world's biggest economy might be over. That sentiment was echoed by Finland's handset maker Nokia Corp., which Thursday said a slump in demand appeared to "bottoming out." Investors cheered the results, despite the cautious outlook, and shares were up 9.4% in afternoon trading in Stockholm. The value of the stock has more than doubled in the past six months to trade at its highest level since October 2007. Write to Ian Edmondson at ian.edmondson@dowjones.com Printed in The Wall Street Journal, page B4
This message was modified Aug 18, 2009 by CarmineD
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CarmineD
Joined: Dec 31, 2007
Points: 5894
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Re: Research . . .
Reply #34 Aug 18, 2009 12:25 pm |
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Good morning Carmine,
Wow, this is a very informative article.
Thanks.
Venson
My pleasure Venson. Gives some excellent insight from the management into the status of vacuum sales globally and what's being done to cut costs/expenses to improve the bottom line with sales/profits waning. Other companies, whether they are publicly traded like Electrolux [whose stock price has done well over the past 6 months], or not, have to do the same cost containment when faced with these economic conditions. It is a huge myth perpetrated by those who don't know better to say privately owned companies are spared the cost paring done by publicly traded ones. If you are in any business good times/bad, privately and/or publicly owned, if you are not constantly cutting excess superfluos costs and expenses [especially in prolonged bad times; read sales/profits falling year over year] then you will not be in business long.
Carmine D.
This message was modified Aug 18, 2009 by CarmineD
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CarmineD
Joined: Dec 31, 2007
Points: 5894
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Re: Research . . .
Reply #35 Sep 30, 2009 7:44 am |
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How's the US economy and appliance sales doing? According to the Association of Home Appliance Manufacturers: In 2005, the USA sales of "large" household appliances was a record breaking 47 MILLION. After 2005, sales declined and since sagged to 39.7 MILLION in 2008 So far this year sales are down 14 percent. Outlook for 2009 Holiday sales season: dismal. Carmine D.
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CarmineD
Joined: Dec 31, 2007
Points: 5894
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Re: Research . . .
Reply #36 Oct 1, 2009 9:06 am |
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Consultancy Retail Forward last week forecast that 2009 holiday sales, including electronics, [read retailers like BEST BUY, Wal*Mart, SEARS HOLDINGS, and Radio Shack] would be the second worst in 42 [forty two] years. Stephen Baker of market researcher NPD Group says that ...."The fact that with most of these products [electronics], people already have one. In this enrironment, retailers are scuffling trying to get customers to buy another." Read: Retailers will try to maintain year over year holiday sales and profits with promotions such as buy-one-get-one-free specials and pushing add-ons such as free home installation services. BTW, Forbes released its latest top 400 USA wealthiest people. The cut off now is $950,000,000. The dollar threshold has gone down from ONE BILLION $ to make the Forbes list. Carmine D.
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Venson
Joined: Jul 23, 2007
Points: 1900
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Re: Research . . .
Reply #38 Oct 30, 2009 9:46 am |
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Electrolux, as in Eureka-Lux, issued 3 rd quarter 2009 financial results and forecasts for rest of the year and future. WSJ covered the story. Do a search on internet to read if interested. Banner quarter primarily due to increased sales, including vacuums, and reduced costs for raw materials and labor, due to outsourcing. For vacuums too. Remember this was the Oxy cann maker which was reluctant to make good on a warranty defect for burnt out wand contacts but finally replaced the entire unit for the customer. Tried to push the problem off on the big box retailer which sold it and an indy that repairs them. Both pushed the problem and customer back to the source: Eureka Lux.</p><p>Carmine D.
Thanks Carmine, You're doing so much of a better job at this than I. Regarding the the bad design issue -- it's my assumption that had there been broader public knowledge of the wand problem "Eureka-Lux's" good news story, vacuumwise, might have been different. Do you think the problem should have warranted a recall? Best, Venson
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dusty
Joined: Feb 8, 2008
Points: 264
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Re: Research . . .
Reply #39 Oct 30, 2009 10:11 am |
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Remember this was the Oxy cann maker which was reluctant to make good on a warranty defect for burnt out wand contacts but finally replaced the entire unit for the customer. Tried to push the problem off on the big box retailer which sold it and an indy that repairs them. Both pushed the problem and customer back to the source: Eureka Lux. Carmine D. I'm confused. Was it not the authorized warranty center that refused to repair the vacuum even though Electrolux told the customer it would be covered under warranty? If the warranty center had simply done the repair there would have been no issue. Customer is happy, warranty center gets paid. In defense of the box store, they did what they always do..sell product...in defense of Electrolux (gag) they were willing to cover the problem. The way I read it, it's the warranty center that dropped the ball (sadly) If it were up to me, I'd remove the dealer as a warranty center. Your original quote of the story follows... Owner paid $281 for the Oxygen from a big box retailer. Contacts failed under warranty. Owner calls Electrolux and it assures him its covered under warranty. Owner brings into an Indy, who says H-E-double hockey sticks NO WAY. Bring it back where you bought it. THE BIG BOX RIP OFF STORE. BBS says SORRY. Owner goes to Channel 7 Investigation Reports for remedy. Indy says NO WAY NO HOW I didn't sell it and I ain't warrantying it. Channel 7 goes to ELECTROLUX-EUREKA LUX who sent owner a new Oxygen. HAPPY CUSTOMER. The end until it happens again.Dusty
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