Le quarterly of the great ones household appliance manufacturers are full of "minus" signs but above all they announce prospects worrying on the year-end closing. All forecast drops in sales, profits and investments, with further cuts in costs, employees and production activities, with the obvious exception of the Chinese giants, which announce growth in almost all markets, even if more modest than the rates of the last decade. Due to the heavy duties imposed on Asian imports by Trump, the giant Chinese factories are directing their surpluses towards Europe.
Private labels are back and Made in China is spreading.
To create further confusion on the markets and alarm among European companies, the use of private label by distribution chains and groups, on appliances purchased directly from Chinese factories and sold at very low prices and with increasingly frequent promotions. The first was Euronics which will sell small appliances under the Higo brand in its 425 stores. "We don't rule out," he declared. Serena Zilio, Marketing Director of Euronics Italy, “that, in the future, the range could expand into new areas such as home and personal care, wireless devices, or accessories related to the world of IT and telephony.” Furthermore, the opening of factories by major manufacturers in Egypt and North Africa, as well as the recourse to purchases of entry-level appliances in China, continue and will continue to reduce the volumes of European sites, to the point of unforeseen closures.
Arçelik: revenues decline in the third quarter
Arçelik Anonim Şirketi he announced that the third quarter closed with revenues consolidated down 11,4% year-over-year. Revenue for the nine months was 379.269,28 million Turkish lira (TRY), compared to 401.698,16 million TRY the previous year. Net loss was 6.435,81 million TRY, compared to a net profit of 18.999,65 million TRY the previous year. Electrolux saw the negative profit curve confirmed, despite an increase in revenues thanks to sales in North America and despite the tariffs. But the perspectives for the whole year have been revised to fall, despite new hiring to cope with production peaks. Several Swedish Electrolux retailers have, among other things, recently declared bankruptcy. As for Whirlpool, recorded modest sales growth thanks to its subsidiary KitchenAid's small appliances. Margins remain under pressure, and the outlook for the full year is bleak.
Growing Asian Manufacturers: Haier, Midea, and Samsung
Haier posted a 9,5% increase in the third quarter, with less stellar results in North America. Net profit rose 12,7%, and cash flow for the nine months reached RMB 17,49 billion. Midea Group said its revenue rose 10 percent year-on-year to 111,9 billion yuan ($15,76 billion) in the third quarter, with net profit attributable to shareholders rising 9 percent to 11,87 billion yuan. Samsung Electronics announced its third-quarter financial results with consolidated revenue of KRW 86,1 trillion, up 15,4% from the previous quarter. However, no one is making optimistic predictions about the full-year results.
Global sales trend of household appliances and televisions
As for the data on the world market, the home appliance sales would negative, but since they are counted together with those of the air conditioners, growth shows a positive sign, with a +4,5%, while sales of tv They saw a decline (-2,1%), especially in Europe, North America, and Japan. In Italy, sales rose by approximately 2%, benefiting Asian brands and causing prices to plummet. Thus, for the third consecutive year, the decline in European factories continues.
Beko Italy, investments and production: alarm bells ringing
One year after the acquisition (April 2024), what happened to the restructuring plan? First of all, the announced investments of around 300 million euros have largely stopped. “Crisis Beko, production is at a standstill. The workers: "We're navigating by sight." From September 22nd to October, the plant will be shut down and workers will be laid off." This was the headline on September 8th Courier Adriatico as regards the Marche factory of i Melano. Worryingly, the Turkish top management had announced several times the decision to immediately invest in the Melano site to make it the European Cooking centre of the group. This is not true, because Beko, in presenting to a section of the press on 26 September Cassinetta, in the Varese area, an innovative oven, made this sensational announcement: "Here the world cooking hub, volumes will grow." In Cassinetta or Melano? Goodbye to the project for the Marche factory? In fact, while in Melano the investments promised and flaunted by Minister Urso, of 62 million, do not arrive, in Cassinetta instead they are 130 million.
No layoffs?
The Spanish Minister Urso In Fabriano he had triumphantly said: "No one will be fired, investments of 300 million are ready." The form is different, but the dismissals and resignations under the heading "redundancies" involved 1.284 people, apart from the redundancy fund, which now affects all sites. In reality it is a question of cuts disguised as redundanciesAs for the 300 million, they were meant to increase the central role of Beko's presence in Europe. The mistake may have been to give too much weight to the government's promises and not to insist on the Golden Power.
