Electrolux, the second largest appliance manufacturer in the world has posted better than expected third quarter results yesterday, but is shuttering two plants in the US, put its Spanish plant under evaluation and laying off 1, 400 workers as it continues to restructure to save on costs.
Stockholm-based Electrolux posted a net profit of 1.63 billion kronor (€160 million) for the quarter ended September, a 92 per cent increase compared to the same period last year due to cost cutting measures initiated late last year as well as low raw material costs.
Net sales declined by 3 per cent due to continued market downturn in its main markets, but showed improved results in all regions due to price containment and an improved mix of products.
But despite improved quarterly results, the appliance maker is closing two plants at Iowa in the US by spring 2011 and has decided to launch an investigation into the future viability of the cooker production in Motala, Sweden, which has approximately 240 employees.
The two plants at Iowa are the Webster City plant, which employs about 900 workers and produces top-loading washing machines and the Jefferson plant, which employs bout 50 people making components for the washing machines.
The company will maintain about 75 workers at its technology center in Iowa.