Business

Electrolux reports better-than-expected earnings but says North American demand will soften

The Electrolux Capital Markets Day in Charlotte, Thursday, Nov. 20, 2014.
The Electrolux Capital Markets Day in Charlotte, Thursday, Nov. 20, 2014. dhinshaw@charlotteobserver.com

Electrolux, which has its North American headquarters in Charlotte, reported earnings Friday that topped Wall Street expectations thanks to a focus on higher margin appliances. But the Swedish appliance maker lowered its outlook for its North American business.

For the third quarter, Electrolux said in a statement that operating earnings rose to 1.83 billion crowns ($201.7 million) from 1.51 billion, above the 1.73 billion expected by analysts surveyed by Reuters.

Electrolux, maker of Frigidaire and Molteni cookers, said its North American business had an organic sales decline of nearly 5 percent for the quarter thanks to lower sales and lower volumes of private label products. Increased price pressure in the market, the company said, continues to drag on sales.

The manufacturer lowered its North American demand growth to 3-4 percent from the year, down from the 5-6 percent the company said this past summer. Rival Whirlpool, based in Michigan, also lowered its demand for North American demand growth, Reuters noted.

Earlier this year, Electrolux announced it was canceling plans for a major expansion at its North American headquarters in Charlotte after its failed attempt to purchase General Electric’s appliance unit.

Electrolux employs about 850 people at its North American headquarters in the University City area.

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