Electrolux Announces Job Cuts
Friday, February 9th 2001, 12:00 am
News On 6
STOCKHOLM, Sweden (AP) â€” Home appliance maker Electrolux plans to cut about 2,000 jobs, or 2.3 percent of its work force, in a restructuring this year after posting an 11 percent decline in fourth quarter earnings.
Electrolux president and chief executive Michael Treschow said Friday the company was cautious about overall prospects for this year.
``I believe it'll be a questionable year because the biggest question mark is what's going to happen in the U.S,'' he said at a news conference. ``I still believe we'll do relatively well but how far and by how much we don't know yet.''
The company which makes appliances ranging from microwave ovens to refrigerators and washing machines has set aside 883 million kronor ($91.5 million) for the restructuring program that will include a realignment of its European and North American organizations.
It employs more than 86,000 people worldwide. Treschow said many of the employees affected by the cutbacks had already left the company.
Electrolux earned 1.4 billion kronor ($145 million) for the three months ending Dec. 31, down from 1.6 billion kronor in the same period the previous year. Sales rose 3.5 percent to 29.4 billion kronor ($3.1 billion) for the quarter.
The company blamed higher price pressure and costs for materials for the decline. It also said demand increased in most markets during the first half of the year but later dropped.
The results were in line with analyst expectations as the company had warned last October that they might not match the level of the same period in 1999. Shares were up 6.4 percent in afternoon trading on the Stockholm Stock Exchange.
Net income for the year was up 10 percent to 6.9 billion kronor ($723 million) from 6.4 billion kronor in 1999. Sales for the year rose 4 percent to 124.5 billion kronor ($13.2 billion).
Sales and operating income for consumer durables increased last year in North America, Asia and Latin America, the company said. Sales in Europe were largely unchanged, although operating income declined.
On the Net:
Electrolux site: http://www.electrolux.com