Don't miss

Replay


LATEST SHOWS

THE INTERVIEW

Australian FM Bishop: In the fight against IS group, 'we are dealing with non-state actors'

Read more

BUSINESS DAILY

Are state-subsidised jobs the solution to France's rising unemployment?

Read more

EYE ON AFRICA

Nigeria currency scam: Anti-corruption agency arrests 20 bankers

Read more

THE OBSERVERS

Women bare their legs in Algeria, and a suicide bomber attacks Shiites in Saudi Arabia

Read more

THE OBSERVERS

Chinese tour guide goes on angry rant, and bees die en masse in Morocco

Read more

IN THE PAPERS

'Will snoop for food'

Read more

DEBATE

NSA: Access Denied (part 2)

Read more

MEDIAWATCH

US Patriot Act partly expires as France strengthens surveillance

Read more

DEBATE

NSA: Access Denied (part 1)

Read more

Business

Despite growing profits, Electrolux will close two US plants

Latest update : 2009-10-26

The Swedish appliance maker Electrolux has announced it is going to close two plants in the United States. The company has also reported a 92 percent rise in profits for the third quarter.

AFP - Swedish appliance maker Electrolux announced on Monday better-than-expected third quarter results but said it would also close two US factories in a continued cost-cutting drive.
  
Electrolux, which on Friday announced the closure of a Spanish plant with the loss of 450 jobs, said it would shutter two washing machine factories in Iowa which employ 950.
  
It said it earned in the three months to September a net profit of 1.63 billion kronor (160 million euros, 240 million dollars), up 92 percent from a year earlier on the back of low raw material costs and previous cost-cutting measures.
  
Analysts surveyed by Dow Jones Newswires had forecast third quarter net profit at 782 million kronor.
  
"Almost everything went our way this quarter. (A) cyclical trough in commodity prices and maintained prices have been decisive for our earnings improvement. Other contributing factors are a better product mix and significant cost reductions," said the company, ranked as the world's second largest home appliance manufacturer.
  
At the same time, it cautioned that "demand continues to be weak, although the rate of decline has slowed down."
  
Electrolux, after carrying out several reorganisations in recent years in a bid to cut costs, announced the elimination of 3,000 jobs in December in response to the global economic slowdown.

Date created : 2009-10-26

COMMENT(S)