Vacuum Cleaners Discussions

Sweden's Electrolux AB named Chief Operating Officer Keith McLoughlin, a 54 year old American, to succeed President and Chief Executive Officer Hans Straberg.  Mr. Straberg, 53, joined Electrolux in 1983 and was appointed CEO in 2002.  It reported first half 2010 net profit of $1.03 billion Swedish kroner ($150.4 million), up from 658 million kroner a year earlier.

McLoughlin currently is responsible for R&D, manufacturing and purchasing for Electrolux Major Appliances and previously was head of Electrolux Major Appliances North America.  He joined the company in 2003 after 22 years withy Dupont.  McLoughlin's appointment is effective Jan 1, 2011.

Straberg is credited with making Electrolux into a global consumer driven company.  Electrolux makes vacuum cleaners, refrigerators and dishwashers and made it through the recent economic downturn by cutting jobs and moving factories to low-cost countries.  Straberg says that he wants to develop his boardroom assignments and currently is a director of Finnish pulp and paper maker Stora Enso.

Carmine D.

Here is a short read of an article about 3rd quarter sales and earnings for Whirlpool and Electrolux.  Unfortunately you have to have a WSJ subscription to view the entire article.  Worse markets for both brands' appliance sales: Europe and North America. 

http://online.wsj.com/article/SB10001424052702304173704575578510128685620.html?ru=yahoo

Perhaps the reason for the recent announcement that Electrolux AB CEO is leaving?  In part, IMHO.

Recent announcements by US retailers indicate that sales, promotions, and price discounts have already started rather than waiting for the traditional holiday season which kicks off the day after Thanksgiving.

Carmine D.

CarmineD wrote:



Hi Carmine,

Are we gong poor and the rest of the world getting rich? Save for oil rich nations, I can't help but feel that the American market is the only place in the world that ambitious European marketers can count on for splurgers. (No offense good friend vacmanuk and M00seUK.) We are largely known for excess.

Here, Electrolux AB has the same problem many new "outsiders" have at least in regard to the American market. They are continually trying to stun the public with cute ideas -- naw, that's really not polite -- let's say "nice" ideas that really shouldn't have to cost all that much just like Miele, Bosch -- ya da, ya da, ya da.

Yeah, it would be great to own an automatic dishwasher with a stainless steel tub and double leak protection AND a concealed heat source (that actually works) but should it cost 15-hundred bucks to have one?

As far as the name games goes Miele, now long established in the U.S. as far back in the days when when all we had to say was, "Put it on my card," has earned its over-priced place across the board in that, most often, you get something worth the expense.

The Electrolux line has a long way to go in endearing itself to the public this side of the sea.

That said, I get the feeling Electrolux is only getting by with vacuum sales as much of the American public believes the vacs are new-fangled renditions of our old Electrolux maker. Much to my surprise I have often had to inform people that the Electrolux we once knew is know in the hands of a company called Aerus and NOT the folks bearing that oh so familiar name.

Venson

Hi Venson:

According to official spokespeople from both the brands the consensus is that consumers are not using their credit cards as much for major new appliance purchases; the major appliances nowadays are lasting longer than in the recent past years; the home market collapse eliminated a major source of sales for new major appliances AND the prices of new major appliances are down in comparison to the same time last year.  Both have revised sales and earnings estimates for 2010 downward.  Not good indicators for a turnaround any time soon.  Most economists have revised their estimates for a turnaround in the housing market and therefore economy and jobs.  From late 2010 and 2011 to 2012 and 2013. 

Aerus should have asked for a percentage on the profits of the Electrolux vacuum sales after selling its name off for many years into the future, exactly for the reason you said.

Carmine D.

I really do hope Electrolux in the UK get better floorcare ranges instead of rebadging everything with AEG .