Stockholm: Swedish appliance maker Electrolux AB said on Thursday its net profit more than quadrupled in the second-quarter, despite a weak market for home appliances, thanks to cost cuts and favorable currency rates.
The Stockholm-based group said net profit was 658 million kronor ($84.4 million), up from 99 million kronor in the same period a year ago, and sharply beating analysts’ expectations of a profit of 198 million kronor.
The company said the result was boosted by cost reductions, lower raw material prices and price increases on its products.
Sales for the three-month period increased by 7.4% to 27.5 billion kronor ($3.5 billion) from 25.6 billion a year earlier. However, the company said sales in local currencies fell by 8.4% due to the continued sharp downturn in its main markets.
Electrolux, which last year was forced to lay off 3,000 staff because of falling demand amid the financial crisis, said the market development continues to be very weak.
“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 statement.