Electrolux 2009 Annual Report Download - page 51

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US market has started recovering
8
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20082006 20092007
Demand development
Demand for appliances is dependent primarily on general business
conditions. As Electrolux is a producer of consumer goods, sales are
affected at an early stage in the economic cycle. Lower market demand
can lead not only to lower sales volumes, but also to a shift in demand
to products with lower prices, which frequently have lower margins. In
addition, utilization of production capacity declines in the short term. In
2009, demand continued to decline in Europe, North America,
Asia and Australia. Demand in the US increased in the fourth
quarter 2009 after 13 consecutive quarters of decline. In
Europe, the decrease was somewhat less in the fourth quar-
ter than previously. In Latin America, growth was strong in
Brazil but declined in the rest of the region.
At the same time, specific segments such
as frost-free refrigerators and induction
hobs show continued strong growth.
Governmental incentives for stimulating
consumer purchasing of energy- and
water-efficient household products have
been implemented by governments in sev-
eral countries, including Brazil, the US and
Australia. Electrolux has a leading position for
such products, and can benefit from increased
demand.
Units,year-over-year,%
47