Electrolux: new heads of Major Appliances EMEA and Major Appliances North America

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Daniel Arler, new Head of Major Appliances EMEA and Executive Vice President of AB Electrolux.
Daniel Arler, new Head of Major Appliances EMEA and Executive Vice President of AB Electrolux.

Electrolux has communicated that Daniel Arler has been appointed new Head of Major Appliances EMEA and Executive Vice President of AB Electrolux. He is currently Senior Vice President of the Kitchen product line with the business area. Besides, Alan Shaw has been appointed new Head of Major Appliances North America and Executive Vice President of AB Electrolux. His most recent position was President of Husqvarna AB’s Consumer Brands division. “We’re very pleased to welcome two such strong leaders with records of proven success to key positions in Group Management – said Jonas Samuelson, new President and CEO of Electrolux -. Dan has been instrumental in developing and implementing our strategy to focus on profitable, built-in kitchen products and reducing complexity in EMEA’s product portfolio. Alan’s strong track record with leading consumer durables brands in North America makes him the right person to drive the continued profitable growth of the business area”.

Alan Shaw, new Head of Major Appliances North America and Executive Vice President of AB Electrolux.
Alan Shaw, new Head of Major Appliances North America and Executive Vice President of AB Electrolux.

The new appointments follow the presentation of Q4 2015 results. “Demand for appliances – explained the company – continued to grow in all markets in Western Europe and was particularly strong in the Nordics, Spain and the UK. Most markets in Eastern Europe, outside of Russia and Ukraine, also showed positive growth. In this market, Major Appliances EMEA showed good organic growth and managed to profitably grow its market share. Segments within built-in kitchen and laundry contributed positively and the operating margin was 7.4% for the quarter, the highest level since 2010. We expect the Western European market to grow by 2-3% in 2016 and the market in Eastern Europe by approximately 2%, although the development in Russia and Ukraine remains uncertain. Our operations in North America continued to recover strongly in the quarter. Positive volume growth in most categories and an improved mix contributed to results. Profitability in refrigeration and freezers has been restored and the work to ramp up and increase efficiency in the new cooking plant in Memphis is making progress. Volume growth in the US market ended the year strongly. We expect the market to continue to be solid in 2016 and forecast demand for appliances to grow by 3-4%. Earnings in Major Appliances Latin America were significantly affected by the weak market situation in Brazil. As a consequence, sales volumes decreased in the quarter. To mitigate the weak market and currency headwinds we have continued to increase prices and reduce structural costs. Other markets in Latin America, including Argentina, showed positive growth, which partly compensated for the weakness in Brazil. We expect the Brazilian market to remain weak in 2016”.
“In the quarter – Electrolux added – a cost reduction program was initiated within the business area Small Appliances with the aim of restoring profitability. Operations have been negatively impacted by lower volumes in several key markets and have also been negatively impacted by currency headwinds. We expect these actions to reach full effect from end of 2016, with estimated annual cost savings of SEK 120m”.