Electrolux sees rise in Q2 profits, but drop in sales

Electrolux, which has its North American headquarters in Charlotte, has reported a 77 percent rise in second-quarter net earnings thanks to strong sales in Europe and North America, but its overall revenue disappointed, dropping over 4 percent.

The drop in sales was worse than expected, prompting investors to push the Swedish company’s share price down over 6 percent to 225.00 kronor in Stockholm.

Net profit was 1.1 billion kronor ($125 million), from 608 million kronor a year earlier. Revenue fell to 29.9 billion kronor due to the effects of a strong dollar and a 36-percent drop in South American sales.

The company, the world’s second-largest maker of household appliances, expects growth to continue in Europe and North America, but cautioned that the outlook for Britain and its currency was uncertain after the British referendum to leave the EU.

In North America, net sales declined about 2 percent, while operating income climbed 85 percent as the company said it improved cost efficiencies and sold a better mix of products.

In January, Electrolux said it was canceling plans for a major expansion at its North American headquarters in Charlotte, where it employs about 850, after its failed attempt to purchase General Electric's appliance unit. It also named a new leader, Alan Shaw, to run the Charlotte-based unit. Staff writer Rick Rothacker contributed.

This story was originally published July 20, 2016 at 10:49 AM with the headline "Electrolux sees rise in Q2 profits, but drop in sales."