Stockholm - Electrolux AB, Europe’s biggest maker of home appliances, reported first-quarter profit that beat analysts’ estimates after price increases offset a negative impact on results from currency movements.
Operating income fell 29 percent to 516 million kronor ($60 million), the Stockholm-based company said in a statement on Friday. The average of analyst estimates compiled by Bloomberg was for 336 million kronor. Net sales increased to 29.1 billion kronor from 25.6 billion kronor.
The maker of Frigidaire appliances had warned that new energy regulations for refrigerators and freezers as well as a slower than planned ramp-up of its cooking plant in Memphis, Tennessee would lead to a loss for its North American business in the first quarter. Actions to restore profitability and increase efficiency will take most of 2015 to show full effect, Electrolux said April 8.
The North American market for home appliances will show growth toward the lower end of the company’s previously communicated range of 3 percent to 5 percent, Electrolux said, and reiterated that the European market is expected to grow by as much as 2 percent.
The Swedish company last year announced plans to acquire General Electric’s appliances unit after Electrolux spent a decade restructuring and moving production to low-cost countries. Earlier this month, Electrolux raised its forecast for total cost savings from the deal, anticipated to close this year, by 17 percent to $350 million.
Bloomberg