Electrolux Net Jumps 23 Percent in Second Quarter
STOCKHOLM-Sales gains and an increase in operating margin helped Electrolux to a strong 23 percent pickup in net income in its second quarter.
The company's bottom line totaled $109.9 million when converting its figures to U.S. dollars using the conversion rate for the quarter as a whole. Net sales rose 3.8 percent to $4 billion, and the company's operating margin rose 100 basis points to 4.1 percent.
Keith McLoughlin, Electrolux's president and CEO, said the company enjoyed healthy earnings growth in North America, driven by price increases across the product board and operational efficiencies. "As we go forward, we expect the North American appliance market to show modest growth as the housing market gradually recovers," McLoughlin said. Looking at the rest of the world, Electrolux's performance in Latin America was up substantially, while Europe continued to lag due to the overall economic weakness on that continent.
McLoughlin added that Electrolux's small-appliance sector came in with operating margins below its 6 percent target, "but we anticipate that the seasonally stronger second half will restore earnings in line with our targets," he added. He also said Electrolux continues to capture share in strategically important categories such as built-in kitchen appliances.