President and CEO Hans Stråberg's comments on the second-quarter results of 2010

President and CEO Hans Stråberg's comments on the second-quarter results
of 2010

We are on track and presenting a record Q2 result 

We are on track and can today present a margin of 6.5% for the latest
12-month period. All business areas show improved profitability. We are
selling more advanced products and are step by step improving our
position in the important premium segment. Cash flow continues to be
strong, which has further strengthened our balance sheet.

We are implementing our strategy, based on innovative products, a strong
Electrolux brand and low production costs. In North America, we have
improved our product mix due to the fact that we have successfully
increased sales and gained market shares under our own strong Electrolux
and Frigidaire brands. I am especially satisfied with the performance in
North America considering the fact that we had extra costs amounting to
about SEK 200m in the quarter related to the re-launch of Frigidaire and
the consolidation of the Group's North Ame­rican headquarters to
Charlotte.

 The US government rebates to stimulate sales of energy-efficient
products have contributed to strong growth, especially in the month of
April. I think there is a learning for other countries on how to reduce
energy-consump­tion in an efficient way. I also believe we will see a
continued growth in North America in the coming years, as many American
consumers need to replace their old appliances, which are beginning to
reach the end of their life cycles. 

In Europe as well, we improved our product mix and continued to sell
more in the very important built-in seg­ment. We will continue to
introduce new products to the European market, and in order to secure
the success of the product launches, we will increase marketing
investments in the second half of 2010. 

The operations in Latin America, Asia Pacific and for Professional
Products succeeded in nearly doubling their earnings compared to the
second quarter of 2009. Asia Pacific showed its best result ever, and
margin increased to 10%. In spite of a very tough period, Professional
Products reached an operating margin of 12%. This is also a record. 

We continue to generate a very strong cash flow, which has further
strengthened our balance sheet. This gives us opportunities to continue
to deliver a strong return to our shareholders. 

Although there is still great uncertainty and many things can happen in
the remaining part of the year, I still think 2010 could be the year we
approach our goal of an operating margin of 6% with continued improved
capital efficiency.

 Stockholm, July 19, 2010 

Hans Stråberg
President and Chief Executive Officer