Electrolux North America had a series of price hikes helped offset the impact of soaring inflation and limited inventory. This helped them report good sales and profits in the first quarter or this year.
In Electrolux’s North American released first-quarter financial report where the company posted a 10.4 percent increase in net sales and a 53 percent jump in operating income year over year. This included $70 million settlement from a case from the Commerce Department tariffs on washers imported from Mexico
Elextrolux credits positive results to a greater mix of higher-priced products and some cost increases. Both of the helped the company counter labor shortages, inflation, supply chain constraints which both incurred higher costs.
First-quarter gains came even with 4 percent decline in U.S.shipments of core laundry and kitchen appliances industrywide, which Electrolux, and separately Whirlpool, attributed to inventory constraints.
Jonas Samuelson, President/CEO said that global supply pains persist, prompting Electrolux to lower its full-year outlook for North American wholesale volume, although tightness should ease somewhat in the back half. The company is collaborating with their suppliers to mitigate these constraints. They estimate that the second quarter will be as challenging as the first quarter, with significant risks of disruptions relating to the resurgence of the coronavirus in China.
The Stockholm-based company halted operations in Russia, Belarus and Ukraine at the start of the war and have resumed limited operations at its Ukrainian facilities.
