Bloomberg News

Electrolux Profit Misses Estimates as Appliance Demand Struggles

February 03, 2012

Feb. 2 (Bloomberg) -- Electrolux AB, the world’s second- biggest appliance maker, reported fourth-quarter earnings that missed analysts’ estimates as demand remains sluggish and the company booked costs for restructuring.

Net income fell to 220 million kronor ($32 million) from 677 billion kronor a year earlier, Stockholm-based Electrolux said in a statement today. Thirteen analysts on average estimated profit of 581 million kronor in a Bloomberg survey. Sales rose 3 percent to 28.4 billion kronor. Electrolux booked 825 million kronor in charges in the quarter.

“While we expect the trend going forward to shift in a more positive direction in the form of gradual improvements in prices, mix and lower costs, we do not anticipate that demand in mature markets will recover in the first half,” Chief Executive Officer Keith McLoughlin said in a separate release. “There could be a certain degree of improvement in the U.S. market by the end of 2012, supported by a modest growth in the housing market.”

The maker of Frigidaire refrigerators and AEG vacuum cleaners has suffered from the decline in consumer confidence in mature markets and high raw-material costs. Electrolux, which has about 35 plants, will close several of them, mainly in North America and Europe, McLoughlin, an American who took over a year ago, said in November.

Whirlpool Corp., the world’s biggest appliance maker, yesterday projected full-year earnings that exceeded analysts’ estimates. Cost reductions and price increases “positively impacted” the results last quarter, the Benton Harbor, Michigan-based company said.

--Editors: Andrew Noel, Robert Valpuesta

To contact the reporter on this story: Ola Kinnander in Stockholm at okinnander@bloomberg.net

To contact the editor responsible for this story: Benedikt Kammel at bkammel@bloomberg.net


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