Stockholm, Oct 26 (DPA) Swedish home appliance maker Electrolux topped analyst projections Monday, reporting nearly-doubled third-quarter earnings.
The group posted a pre-tax profit of 2.2 billion kronor ($324 million), compared to 1.2 billion kronor in the corresponding business period 2008. The year-on-year net profit grew from 847 million to 1.6 billion kronor.
Net sales were up 4.8 percent to 27.7 billion kronor in the quarter.
Chief Executive Hans Straberg said in a statement that markets remained “weak” and although the North American was stabilising, “the European market has not yet hit bottom”.
The group noted that while the North American market has declined for 13 consecutive quarters the decline was lower than previously. Europe experienced its eighth straight quarter of decline.
The group was to continue its cost-cutting measures, and was to close two plants in the US and Spain, impacting some 1,400 jobs. A plant in Sweden with some 240 employees was also under review.
Year-on-year raw material costs fell but Straberg said there were signs the costs were beginning to rise. Main raw materials used by the group are steel, plastics, copper and aluminium.
In recent years, the group has moved production from plants in countries like Germany, Britain and Sweden to Poland, and from the US to Mexico.
Electrolux had some 49,800 employees at the end of September, compared to some 55,000 employees at the end of 2008.
