Affected by price pressure and increased costs for raw materials, the income of the Swedish multinational appliance manufacturer Electrolux fell by 48 percent last year compared to 2010, the company said in its fiscal report Thursday.
The net income of the company in 2011 amounted to 2.78 billion Swedish kronor (about $412 million), while net sales amounted to 101.59 billion Swedish kronor (about $15,057.1 million), reported Xinhua.
In the fourth quarter of 2011, the company’s net sales had a slight increase of three percent, amounting to 28.37 billion Swedish kronor (about $4.2 million), while the net income plummeted by 65 percent compared to the same period in 2010.
Price pressure, high raw materials costs with the weak demand could account for the dramatic fall in the company’s income of 2011, said Electrolux’s president and CEO Keith McLoughlin.
“We have taken actions to increase prices…acquire companies in emerging markets and change the organization to strengthen the company’s position as we entered 2012,” said McLoughlin who described the market as a “tough environment”.
According to the report, Electrolux markets in Latin America, Southeast Asia and Eastern Europe contributed 35 percent of the total sales in 2011 with strong growth.