Electrolux swings a profit a year after failed GE deal

Electrolux, which has its North American headquarters in Charlotte, reported Wednesday that its financial health is on the mend just over a year after its planned purchase of General Electric’s appliance unit was called off.

Stockholm-based Electrolux said in a statement that its operating income rose to 1.62 billion Swedish krona ($185 million) in the fourth quarter, up from a loss of 202 million Swedish krona ($23.1 million) in the same quarter a year ago. Fourth quarter profit was nearly in line with the mean forecast of 1.67 billion Swedish krona in a Reuters survey.

Net sales for the quarter totaled 32.14 billion Swedish krona ($3.67 billion) – up about 1.1 percent from the same period a year ago. The company said that acquisitions and currency translation boosted net sales, though organic sales declined by 3 percent for the quarter.

Also weighing on sales and earnings, Electrolux said, was “significantly weaker” market demand in its Latin American major appliances unit.

Electrolux said it is making “good progress” in its effort to restore profitability in its small appliances unit. As part of that effort, in December the appliance maker sold its North American vacuum cleaner brand Eureka to Midea Group, a Chinese appliance manufacturer.

Electrolux said the $175 million termination fee from the failed GE Appliances deal cut into its fourth-quarter earnings. After that deal fell through, Electrolux said last January it was canceling plans for a major expansion at its North American headquarters in Charlotte.

Electrolux employs about 850 people in the University City area.

This story was originally published February 1, 2017 at 10:16 AM with the headline "Electrolux swings a profit a year after failed GE deal."