Stockholm. 27 Oct. INTERFAX – Swedish Electrolux AB, one of the world’s largest manufacturers of home appliances, increased its net profit by 12% in the third quarter figures beat market expectations.
According to a press release, its net profit in the June-September amounted to 1.42 billion Swedish kronor ($175,2 million), compared to 1.27 billion kronor in the same period last year.
Revenue down 5% – up to 29,31 billion crowns, due to weak sales of large equipment in North America, price competition and updating of the product range.
Experts polled by FactSet, on average, had estimated net profit at the level of 1.34 billion crowns on revenue of 30.89 billion crowns.
The profitability of Electrolux’s operating profit margin increased to 6.7% compared with 5.9% in the third quarter of 2016.
The company expects sales growth in Europe by 1% by the end of 2017, in North America by 3-4%. Meanwhile, the cost of raw materials in the current year may increase by SEK 1.4 billion compared with the previous year.
Electrolux shares rise in price by 1.3% in Friday trading.