Electrolux President and CEO Keith McLoughlin’s comments on the results for the second quarter of 2014

Continued earnings recovery in our major markets
The improvement in our European operations continued in the second quarter and
operating income increased significantly over last year. At the same time, the
development in North America continues to show a solid trend. We also managed to
show good performance in Latin America, in weakened market conditions. In total,
the Group’s operating income increased to SEK 1,167 million with a strong cash
flow of SEK 3.3bn.

A positive impact from the ongoing cost-reduction program in Europe, combined
with an improved product mix in such areas as built-in kitchen products, led to
a significant improvement in our operating income in EMEA. Market development in
Europe continued to show a dispersed pattern, with growth increasing in the
Iberian countries and in the UK in the second quarter, while there was a
weakening in France and the Nordic countries. We reconfirm our view that
European market demand will increase by 1-3% in 2014.

As previously communicated, we have concluded a review of our manufacturing
operations in Italy. In May, we reached an agreement with the Italian trade
unions and authorities, which entails significant cost reductions. The agreement
will contribute to our efforts to restore long-term profitability for Major
Appliances EMEA.

As expected, the mix continued to improve in our North American operations. We
have a strong focus on growing in premium segments, such as cooking products and
multi-door refrigeration. Volumes of core appliances continued to increase.
However, we saw deterioration in our overall sales volumes, mainly as a result
of lower sales within room air-conditioning. Sales volumes in the quarter were
also negatively affected by a fire at one of our suppliers of components within
the refrigeration and laundry segments. The US appliance market continues to
recover, driven by both replacement demand and housing, with a total expected
growth of 4% in 2014.

Our sales volumes in Latin America began to slow already in the second half of
2013.  As the macro-economic environment deteriorated further during the spring,
we had a significant decline in sales volumes during the second quarter. The
slowdown was further fueled by a temporary negative impact on sales related to
the FIFA World Cup. In order to mitigate the weakened market, we have taken
actions to adapt and reduce costs. We were also able to increase prices to
compensate for currency headwinds and inflation. Although we remain confident
that Latin America will continue to grow in the medium to longer term,
visibility in the near term is low.

The Group’s overall profitability shows a recovery both in the second quarter,
and in the first half of the year compared with the same period in 2013. We will
continue to launch new, innovative products in parallel with optimizing global
production with a strong focus on cost efficiency. This will enable us to
continue to generate a solid cash flow and shareholder value.

Stockholm, July 18, 2014

Keith McLoughlin
President and CEO
For further information, contact Electrolux Press Hotline, +46 8 657 65 07.

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 07.51 CET on July 18, 2014
Electrolux is a global leader in home appliances, based on deep consumer insight
and developed in close collaboration with professional users. We offer
thoughtfully designed, innovative solutions for households and businesses, with
products such as refrigerators, dishwashers, washing machines, cookers, vacuum
cleaners, air conditioners and small domestic appliances. Under esteemed brands
including Electrolux, AEG, Zanussi, Frigidaire and Electrolux Grand Cuisine, the
Group sells more than 50 million products to customers in more than 150 markets
every year. In 2013, Electrolux had sales of SEK 109 billion and 61,000
employees. For more information go to http://group.electrolux.com.