Electrolux AB (ELUXB), the world’s second- biggest maker of home appliances, reported first-quarter profit that missed estimates as weaker market conditions in Europe failed to offset strong North American sales growth.
Net income was 361 million kronor ($54.7 million) in the three months ended March, down from 501 million kronor a year earlier, the Stockholm-based company said today in a statement. The average estimate of 15 analysts surveyed by Bloomberg was profit of 517.5 million kronor.
In Europe, “all of our operations continued to suffer from weak consumer confidence, resulting in falling volumes and negative price and mix development,” Chief Executive Officer Keith McLoughlin said in the statement.
The maker of AEG vacuum cleaners and Frigidaire freezers is selling new products and cutting costs to counteract weakness in its European markets where cash-strapped consumers have reined in spending. Electrolux is also vying to capture growth in emerging markets, while moving production to low-cost countries.
The electrical goods maker reiterated its forecast for demand for core appliances in Europe, which is expected to decline this year, while demand in North America is expected to increase.
Sales fell to 25.3 billion kronor from 25.9 billion kronor a year earlier, missing the average estimate of 25.5 billion kronor.
Whirlpool Corp. (WHR), the world’s largest home appliances maker, yesterday reiterated its full-year forecast as it posted first- quarter adjusted earnings per share that beat analysts’ estimates while sales fell shy.
To contact the reporter on this story: Katarina Gustafsson in Stockholm at firstname.lastname@example.org
To contact the editor responsible for this story: Celeste Perri at email@example.com