Electrolux to raise prices as costs surge
Stockholm, June 13, 2011
Electrolux, the world's second-biggest home appliances maker, plans to raise prices on all its products in Europe to offset the rising costs of raw materials, such as steel, and transportation.
The firm said on Monday it had experienced increased price pressure, especially in the first part of 2011, and aimed to implement 5 to 7 percent price rises from October 1.
"Over the past 18 months, the average costs for some of Electrolux most important raw materials have increased between 40 and 90 percent, while costs for transportation have also increased significantly," the company said.
"The trend is now stabilising, but there are no signs of a broad based major downward correction towards the prior cost levels."
Both Electrolux and market leader Whirpool Corp have been raising prices to offset costs for materials such as steel and plastics, and are seeking growth in emerging markets.
In April, Electrolux reported first-quarter profit which just beat forecasts and kept an outlook for modest growth in demand in Europe and North America.
It had previously said it would raise prices in the region, as well as in Latin America, to offset earlier promotions and price cuts in the competitive industry. Price rises in North America have averaged 4 percent. - Reuters