HUSKVARNA, Sweden, Sept 24 (Reuters) – Sweden’s Electrolux the world’s biggest home appliances maker, said on Wednesday it was gaining market share in its key North American market despite pressure on prices.
Chief Executive Hans Straberg told an investment conference in southern Sweden that the North American market in white goods such as refrigerators and washing machines had shown stability in the year to date and had picked up in recent months.
“In the last two months the market has been turning up, which supports our view of a flat or slightly growing market this year,” Straberg said. “We are outpacing the market now in North America and we hope to continue to do so.”
Electrolux, which says it has 23-24 percent market share in North America, is the third biggest player after arch rivals Whirlpool (nyse: WHR – news – people) and GE Appliances (nyse: WHR – news – people). Its North American white goods unit contributes around 35 percent to annual global sales of 133 billion Swedish crowns ($17 billion).
Electrolux’s globally-sold vacuum cleaners, dishwashers and refrigerators make it an indicator for big ticket consumer items in the U.S. and European markets and a pointer to the overall economic cycle.
On Tuesday Electrolux’s North American chief Keith McLoughlin said its U.S. market should grow 4-6 percent in 2004. Europe remained tough but could deliver moderate growth and stable profits in 2003, he said.
Electrolux’s biggest competitor Whirlpool has forecast continued price pressure in all major markets this year, but said two months ago it had begun to see a moderate pick-up in U.S. and European demand for major appliances.
Straberg said the North American market share gains had been achieved in the face of tough competition which sparked price deflation of around three percent.
“We have seen a little more price pressure in the U.S. this year, perhaps three percent down against last year’s two percent, but we have taken market share,” he said.
Electrolux shares were up 0.6 percent at 178.50 crowns by 0957 GMT in a stronger Swedish market whose blue chip OMX index was up one percent.