Electrolux Posts Q2 Gains in North America
STOCKHOLM-Electrolux's North American business set a record in second-quarter profit of $101 million, up 41 percent over the second quarter of last year.
North American net sales totaled $1.3 billion, up 3 percent, in the quarter which ended on June 30. An Electrolux statement attributed the North American performance to improvements in price and product mix, organic growth and increased efficiency in operations.
Keith McLoughlin, Electrolux's president and CEO, said the top and bottom lines benefited from the fact that "we now have access to all major distribution channels." The recovering housing market in North America led to an increase in demand for appliances, and McLoughlin said the housing market should continue to gain momentum going forward.
"As a result, we now believe that demand for appliances in the U.S. will increase by 5-7 percent in 2013," he said. McLoughlin noted that demand in North America is still 23 percent below its peak in 2006, which should also provide plenty of room for growth through the rest of this year.
Overall, Electrolux's net income fell 8 percent in the second quarter, to SEK642 million ($97.6 million). Net sales were flat at SEK27.7 billion ($4.2 billion). The difficulty in the company's European market put a damper on both income and sales, offsetting to some extent the North American gains and a strong performance in Latin America.