STOCKHOLM: Electrolux, the world's second biggest home appliances maker, said on Thursday, Sept 23 chief executive Hans Straberg is to step down at the end of the year to pursue new interests after nearly a decade at the helm.
Electrolux said Straberg, 53, would be replaced by Keith McLoughlin, who is currently head of R&D, manufacturing and purchasing at the group, the second largest in the sector globally behind US company Whirlpool.
The changing of the guard was unexpected in the light of the acclaim Straberg had received for reshaping the group in recent years but analysts said McLoughlin, 54, a former North America head, was the obvious choice as his successor.
"We feel Keith McLoughlin is a good, dedicated person, and his track record from his three years in North America speak in his favour," Nordea analyst Johan Trocme said.
"Of course there is always a measure of uncertainty related to changing CEO in a large organisation, but in this case they are keeping a good measure of continuity."
Straberg said in a statement that he wanted to do something new after spending 27 years working at the company, which makes appliances under brands including Frigidaire, Zanussi and AEG-Electrolux.
"This was not an easy decision to make, but I consider my mission accomplished," he said.
Electrolux shares edged 0.1% lower to 161.8 Swedish kroner (RM72.93) at 0757 GMT, exactly in line with the Stockholm bourse's blue chip index.
Straberg spent much of the past decade restructuring a group squeezed by cutthroat competition from lower-cost rivals, shifting a growing slice of Electrolux's production to emerging markets to tap into lower labour costs.
A new focus on premium white goods helped Electrolux boost its profitability despite a sharp fall in demand due to US housing market woes and ensuing global financial crisis, winning Straberg acclaim from industry analysts.
In July, Electrolux just missed earnings forecasts in the second quarter but repeated its outlook for demand to grow this year in its main markets though Europe was expected to see a slow recovery.
Chairman Marcus Wallenberg said he was sorry to see Straberg go and noted the market value of the company had doubled under his nine years as top executive.
"The Board is pleased that Keith McLoughlin will take the baton," Wallenberg said.
"His focus will be to continue executing the Electrolux strategy. Keith has been deeply involved in developing and implementing the strategy, has turned around the Electrolux North American major appliances operations and has already today a major global responsibility." ' Reuters
Electrolux said Straberg, 53, would be replaced by Keith McLoughlin, who is currently head of R&D, manufacturing and purchasing at the group, the second largest in the sector globally behind US company Whirlpool.
The changing of the guard was unexpected in the light of the acclaim Straberg had received for reshaping the group in recent years but analysts said McLoughlin, 54, a former North America head, was the obvious choice as his successor.
"We feel Keith McLoughlin is a good, dedicated person, and his track record from his three years in North America speak in his favour," Nordea analyst Johan Trocme said.
"Of course there is always a measure of uncertainty related to changing CEO in a large organisation, but in this case they are keeping a good measure of continuity."
Straberg said in a statement that he wanted to do something new after spending 27 years working at the company, which makes appliances under brands including Frigidaire, Zanussi and AEG-Electrolux.
"This was not an easy decision to make, but I consider my mission accomplished," he said.
Electrolux shares edged 0.1% lower to 161.8 Swedish kroner (RM72.93) at 0757 GMT, exactly in line with the Stockholm bourse's blue chip index.
Straberg spent much of the past decade restructuring a group squeezed by cutthroat competition from lower-cost rivals, shifting a growing slice of Electrolux's production to emerging markets to tap into lower labour costs.
A new focus on premium white goods helped Electrolux boost its profitability despite a sharp fall in demand due to US housing market woes and ensuing global financial crisis, winning Straberg acclaim from industry analysts.
In July, Electrolux just missed earnings forecasts in the second quarter but repeated its outlook for demand to grow this year in its main markets though Europe was expected to see a slow recovery.
Chairman Marcus Wallenberg said he was sorry to see Straberg go and noted the market value of the company had doubled under his nine years as top executive.
"The Board is pleased that Keith McLoughlin will take the baton," Wallenberg said.
"His focus will be to continue executing the Electrolux strategy. Keith has been deeply involved in developing and implementing the strategy, has turned around the Electrolux North American major appliances operations and has already today a major global responsibility." ' Reuters
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