* Says liquidity position has improved in recent months
* Sees no need for external financing in 2009 (Adds details, quotes)
STOCKHOLM, March 31 (Reuters) - Electrolux's liquidity has improved in recent months and there is no need for an external capital boost, its chief executive said on Tuesday.
"We have during the first two months of this year further improved our liquidity and don't see any need for external financing in 2009," Electrolux Chief Executive Hans Straberg told the annual shareholders meeting of the world's second-largest appliance maker by sales.
He also said that during the same period -- January to February this year -- the European market for the company's products shrank by 20 percent.
Electrolux does not expect to invest in any new capacity for the rest of the year and aims to reduce its total investments by 30 percent, he added.
"We see no need to invest in new capacity in the foreseeable future. We expect to reduce investments by at least 30 percent in 2009," Straberg said.
He also reiterated the company's long-term profitability expectations.
"When the market improves, I am convinced that we will to reach our goal of an (operating) margin of 6 percent," he said.
(Reporting by Sven Nordenstam; Editing by Erica Billingham)