Electrolux: President and CEO Keith McLoughlin’s Comments on the Results for the Third Quarter 2015

Organic growth and cost efficiency contributed to earnings


Electrolux (STO:ELUXA) (STO:ELUXB) operating income amounted to SEK 1.5
billion in the third quarter of 2015, an increase of 8% year-over-year.
Our largest business areas, Major Appliances EMEA and Major Appliances
North America, which together comprise 65% of the Group’s sales,
achieved good organic growth and strong improvement in earnings.
Professional Products continued to perform well. The weak macro-economic
environment in Brazil had a negative impact on Major Appliances Latin
America. The Group had a strong cash generation of SEK 3.2 billion in
the quarter.

Demand for appliances continued to improve in almost all markets in
Europe. In Western Europe, there has been positive growth for seven
consecutive quarters. In this market, Major Appliances EMEA continued to
actively manage the product portfolio and gained market share in
profitable segments such as built-in kitchen. Our ongoing cost savings
programs continued to contribute to earnings. We expect the total
European market to grow by 1–2% in 2015, including deterioration in
demand in Russia and Ukraine.

Major Appliances North America achieved good organic growth in the
quarter and volumes increased in almost all categories within core
appliances. Profitability within food preservations is now being
restored. Earnings in this segment have in previous quarters been
impacted by the transition of the product ranges, following the new
energy requirements imposed in the second half of 2014. Actions are
underway to ramp up the cooking plant in Memphis, which has been slower
than anticipated. The US market for appliances continued to be solid and
we now expect growth in the range of 4-6% for the full year.

The market environment in Brazil continued to be challenging. Demand for
appliances weakened significantly in the quarter which affected sales
volumes and earnings. To mitigate the weak market we have taken cost
reduction actions, and we also implemented price increases to compensate
for currency headwinds. The decline in operating income in Brazil was to
some extent mitigated by stronger financial performance in Argentina and
Chile. The macro-economic outlook in Brazil remains weak.

Our operations in Major Appliances Asia/Pacific were impacted by lower
sales in China, as we are reducing the business scope in the Chinese
market, while profitability in Australia and Southeast Asia remained
good. Professional Products continued to perform well and the business
area achieved its highest operating margin ever in a quarter.

As previously announced, we continue to explore the possibility of a
reasonable settlement with the U.S. Department of Justice regarding the
pending acquisition of GE Appliances. At the same time, we are also
preparing to defend ourselves in court in November and we are confident
of the merits of our case. We believe that the appliance industry is
more competitive than ever and we remain confident that the acquisition
will enhance our ability to deliver even more innovative products at a
better value to consumers, builders and retailers. The acquisition is
expected to strongly contribute to the achievement of the Electrolux
vision of being the best appliance company in the world as measured by
our customers, employees and shareholders.

Stockholm, October 23, 2015

Keith McLoughlin

President and CEO

Electrolux is a global leader in home appliances, based on deep consumer
insight and developed in close collaboration with professional users. We
offer thoughtfully designed, innovative solutions for households and
businesses, with products such as refrigerators, dishwashers, washing
machines, cookers, vacuum cleaners, air conditioners and small domestic
appliances. Under esteemed brands including Electrolux, AEG, Zanussi,
Frigidaire and Electrolux Grand Cuisine, the Group sells more than 50
million products to customers in more than 150 markets every year. In
2014, Electrolux had sales of SEK 112 billion and 60,000 employees. For
more information go to www.electroluxgroup.com.

Electrolux discloses the information provided herein pursuant to the
Securities Market Act and/or the Financial Instruments Trading Act. The
information was submitted for publication at 08.01 CET on October 23,

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Catarina Ihre, 46 (0)8-738-60-87
Vice President,
Investor Relations
Electrolux Press Hotline, 46-8-657-65-07