Alexa

Electrolux posts 11 pct rise in 3Q profits

Electrolux posts 11 pct rise in 3Q profits

Swedish appliance maker Electrolux AB reported an 11 percent rise in third-quarter net profit Monday, citing falling costs primarily in Europe.
The company said net profit for the period increased to 847 million kronor ($107 million) from 762 million in the third quarter 2007. However, sales for the quarter nudged down to 26.35 billion kronor ($3.31 billion) from 26.37 billion a year earlier.
Chief executive, Hans Straberg said the financial crisis has "without a doubt affected the consumption levels of appliances."
"Many consumers are postponing their purchases or choosing less expensive products. And there's no evidence that the weak market developments will turn around in the near future," he said in a statement.
However, he said the company is starting to see results of cost-cutting measures in Europe and has recognized an even bigger potential to reduce costs in that area.
Electrolux kept its outlook for the full year unchanged, saying it expects an operating income of between 3.3 billion and 3.9 billion kronor ($415 million and $490 million).
Straberg also said the company's launch of a new premium appliance line in North America was a "great success."
The rollout of the new brand has weighed heavily on the profits on previous quarters, but Straberg said those products are now sold in more than 3,000 retail outlets across North America.
Electrolux has previously only sold large appliances in North America under the Frigidaire and Electrolux Icon brands.


Updated : 2021-04-13 03:10 GMT+08:00