Thursday, July 16, 2009

Electrolux Posts Surprise 2Q Rise

. Thursday, July 16, 2009

By stockOzone team

Electrolux AB (ELUXb.ST), the world's second biggest home appliances maker, posted a surprise rise in second-quarter core profit on Thursday but said it still expected market demand to fall this year.

Swedish appliance maker said Thursday that its second-quarter net income jumped to 658 million Swedish krona, from 99 million krona a year ago. Sales rose 7.4% to 27.5 billion krona. Last year, the firm's result were hit by 780 million krona of charges, in part related to the launch of operations in North America.

Electrolux repeated it saw demand for appliances continuing to fall this year in the worst global economic downturn in decades.

"There are no indications of an immediate improvement in any of the group's main markets, and, therefore, market demand for appliances around the world is expected to decline further in 2009," the company said.

"Market development continues to be weak, although in North America we see certain early signs that we are beginning to reach the bottom," Chief Executive Hans Straberg said in a separate statement.

Disclosure: Author does not own any of the stocks discussed here.

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