President and CEO Keith McLoughlin’s comments on the results for the second quarter of 2012

Strong sales and earnings improvement

Electrolux generated a record-high organic sales growth during the second
quarter and improved its earnings significantly compared to the same period of
last year. Our operations in Latin America and Asia showed strong volume growth
and earnings in North America were up significantly. An important factor for the
positive development in North America was price increases. In Europe, Electrolux
continued to gain market share, but results were negatively impacted by the weak
market development.
In the second quarter, organic growth accounted for approximately 6%, which is a
historic record for the Electrolux appliance business, with both volume and
price contributing positively.

Sales volumes in our Latin American operations were up substantially, partly
driven by government tax incentives in Brazil, and our operations in Chile and
Argentina, originating from the CTI acquisition, continue to outperform the
market.

The Electrolux appliance business in North America significantly improved its
operating income compared with the same period in 2011. The most important
factors for the strong result were price increases and operational efficiency.
As we go forward, we expect the North American appliance market to show modest
growth as the housing market gradually recovers.

Four out of our six business areas delivered an EBIT margin at or above our 6%
target. Small Appliances showed a lower margin, but we anticipate that the
seasonally stronger second half will restore earnings in line with our targets.
The soft performance for Major Appliances Europe is primarily related to the
weak consumer confidence that is spreading throughout Europe and impacting the
appliance market negatively through weak demand. In spite of a difficult
environment, Electrolux continues to capture share in strategically important
areas within the premium segments, such as built-in kitchen appliances.

We continue to generate solid cash flow primarily due to the healthy trend in
our working capital, which is attributable to our ongoing structural efforts in
capital efficiency. This strong cash flow has further strengthened our balance
sheet, enabling us to be prepared for both uncertainty and the profitable growth
opportunities that we see ahead of us.

We still expect raw-material costs for 2012 to exceed the 2011 level by a
maximum of SEK 500m. With today’s market prices for our most important raw
materials, we anticipate a more positive development for 2013.

Our revenues from emerging markets have increased from 15% to 35% only in a few
years time. We anticipate that we will be able to maintain the strong organic
growth in Latin America and Southeast Asia, recover sales growth in our Northern
African and Middle Eastern businesses and get leverage from launching new
products in the Chinese market. This diversification of our revenue base is an
important part of our portfolio growth strategy.


Stockholm, July 19, 2012


Keith McLoughlin

President and Chief Executive Officer