President and CEO Hans Stråberg's comments on the first quarter results

President and CEO Hans Stråberg's comments on the first quarter results

Cost reductions generate results in a continued difficult market 

Thanks to successful cost-reduction programs, we have managed to achieve a
positive result for the first quarter in spite of continued dramatic decreases
in demand. Moreover, our strong cash flow leaves us in a sound financial
position, an important factor in this period of great uncertainty. We continue
with our forceful efforts to be able to take advantage of all opportunities when
demand does pick up again.

Although currency changes and decreased demand for our products have affected us
negatively, we managed to generate a positive operating income for the first
quarter, much thanks to the cost-saving measures that are being implemented
within the Electrolux operations. Moving production to low-cost countries,
decreasing the number of employees and reducing product costs have particularly
impacted the result positively. In addition investments in new products is
paying off, as evidenced by an improved product mix and successful price
increases in many markets. 

Our work to improve cash flow has paid off. Even though demand has dropped
dramatically, affecting the underlying result negatively, our cash flow was
substantially better this quarter than in the same period last year. This is the
result of many years of work to drive the business operations with a strong
focus on cash flow. In these times, this is more important than ever. We have
been very careful when it comes to delivering to customers who might have
difficulties paying. By decreasing and temporarily cutting production, we have
adapted our inventory to current demand levels. We have also decreased capital
expenditure. We estimate that capital expenditure will decrease by over 30% this
year. In addition, we have implemented savings and reduced our costs. All in
all, our strong cash flow gives us a solid financial position and thus good
conditions under which we can take advantage of the business opportunities that
will re-emerge when the market turns around.
In the current demand situation, we are constantly balancing between reducing
costs and at the same time making investments in apparent opportunities. 

In China, we are closing our refrigerator factory in Changsha at the same time
as we are concentrating our distribution to gain a strong position in the
premium segment.

In the US, we have drastically reduced the cost levels at the same time as we
are continuing to market the new product range under the Electrolux brand and
invest in a new, exciting range of products under the Frigidaire brand. 

In Europe, we are reducing the number of employees and production capacity at
the same time as we are preparing for a comprehensive introduction of a new
product range this summer at all IKEA stores in Europe.

The developments on the market are dramatic. In North America, we've experienced
eleven consecutive quarters of weakening demand. Even if the decrease is
expected to continue in the coming quarters, we see some early signs that we are
beginning to reach the bottom. The volumes in Europe have decreased for five
consecutive quarters, with the first quarter of 2009 showing the most dramatic
drop. Unfortunately, this will not improve in the near future. The challenge for
us right now is to strike the right balance between the brakes and the gas pedal
in order to stand strong when demand turns around.



Stockholm, April 22, 2009

Hans Stråberg
President and Chief Executive Officer



Electrolux discloses the information provided herein pursuant to the Securities
Market Act and/or the Financial Instruments Trading Act. The information was
submitted for publication at 08.00 CET on April 22, 2009.