Electrolux Pushed to Loss by Failed GE Deal Costs -- Update

By Christina Zander 

STOCKHOLM--Swedish household appliance maker Electrolux AB on Thursday announced the appointment of two key executives as its failed bid for General Electric Co.'s appliance business pushed it to a fourth-quarter loss.

Europe's largest appliance maker by sales named Daniel Arler as head of its major appliances business in Europe, Middle East and Africa, and Alan Shaw as the new head of its major appliances business in North America. The two units make up about 65% of the company's sales.

The appointments are part of a boardroom shake-up launched following the collapse of the GE deal, in which Jonas Samuelson, currently head of the European major appliances unit, will take over as chief executive from Keith McLoughlin on Feb 1.

Electrolux posted a net loss of 393 million Swedish kronor ($46.2 million) for the three months to Dec. 31, down from a net profit of 970 million kronor in the same period last year. It booked charges of 1.66 billion kronor related to the failed GE deal.

Mr. McLoughlin announced he was leaving Electrolux after GE in December last year pulled the plug on a $3.3 billion agreement to sell its appliances business to the Swedish company, a deal that would have created a white-goods giant capable of rivaling Chinese players and Whirlpool Corp. of the U.S.

The company said its major appliances business in Europe, the Middle East and Africa, and major appliances in North America, both grew organically during the quarter, while sales in Latin America and Asia were hit by weak market trends.

Electrolux said demand measured by unit sales for its core appliances in Western Europe increased by 3% in the fourth quarter, while Eastern Europe declined by 24%, because of continued weakness in Russia. In total, European market demand increased by 3% excluding Russia. Market demand of core appliances in North America increased by 8%.

Market demand for core appliances in Australia and China increased, while it declined in Southeast Asia. Demand for appliances in Brazil continued to deteriorate and is expected to remain weak in 2016.

Write to Christina Zander at [e-mail]

(END) Dow Jones Newswires

January 28, 2016 03:42 ET (08:42 GMT)

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