By Christina Zander
STOCKHOLM--Swedish home appliance maker Electrolux on Friday
reported a 21% fall in first-quarter net profit as a poor
performance at the company's North American major appliances unit
weighed on earnings.
The company said net profit for the three months ended March 31
fell to 339 million Swedish kronor ($39 million), compared with a
profit of 431 million kronor in the same period a year earlier.
On April 8, the company issued a profit warning saying
first-quarter results in its North American major appliances
business would come in "significantly lower" than expected. The
unit reported an operating loss of 57 million kronor for the period
as a transition of the product range to new energy requirements and
ramp up of a new production facility hampered performance.
The weak result in North America comes as Electrolux prepares to
integrate General Electric Co.'s appliances business, which it
agreed to buy last year in a $3.3 billion move that will almost
double the company's U.S. footprint and put Electrolux on a par
with Whirlpool, the largest appliance maker in the U.S.
Sales in the first quarter totaled 29.09 billion kronor, up 14%
from 25.63 billion kronor a year earlier because of currency
translations. Operating profit came in at 516 million kronor,
compared with 731 million kronor in the prior-year period.
The company said demand for its products increased during the
first quarter in all markets except Australia, Russia and
Brazil.
Write to Christina Zander at christina.zander@wsj.com
Access Investor Kit for Electrolux AB
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=SE0000103814
Access Investor Kit for Electrolux AB
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US0101982082
Access Investor Kit for General Electric Co.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US3696041033
Subscribe to WSJ: http://online.wsj.com?mod=djnwires