Feb. 1 (Bloomberg) -- Electrolux AB, the world’s second- biggest appliance maker, was the top gainer on the OMX Stockholm 30 Index after U.S. competitor Whirlpool Corp. predicted a higher-than-expected full-year profit.
Electrolux, which trails Whirlpool in sales, rose as much as 4.6 percent and was up 4.3 percent at 130 kronor as of 4:00 p.m. local time. Shares in Stockholm-based Electrolux have climbed 16 percent this year, outperforming the 5.5 percent increase for the OMX Stockholm 30 Index and valuing the company at 40.3 billion kronor ($5.98 billion).
“It’s very significant that Whirlpool is talking about a positive development,” James Moore, an analyst at Redburn Partners LLP in London who recommends investors buy Electrolux’s stock, said by phone today. “It looks increasingly likely there’s a real consumer recovery in the U.S.”
Whirlpool, based in Benton Harbor, Michigan, advanced in New York after the company projected full-year earnings that exceeded analysts’ estimates. The share increased 10 percent to $59.92. Cost reductions and price increases “positively impacted” the results last quarter, the company said today in a statement.
Whirlpool predicted full-year profit of as much as $7 a share, excluding restructuring expenses and Brazilian tax credits. Analysts projected $5.80, the average of estimates compiled by Bloomberg. Net income in the quarter ended Dec. 31 rose to $205 million, or $2.62 a share, from $171 million, or $2.19 a year earlier.
--Editors: Kim McLaughlin, Toby Alder
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