Chasing DOJ deal, Electrolux lifts sales, profits

GMT 16:23 2015 Friday ,23 October

Arab Today, arab today Chasing DOJ deal, Electrolux lifts sales, profits

Operating profit rose by 8.1 percent to 1.5 billion kronor euros
Stockholm - AFP

Swedish appliances manufacturer Electrolux on Friday posted higher than expected third quarter operating profit on strong North American and European sales propelled by currency movements.

Operating profit rose by 8.1 percent to 1.5 billion kronor euros (160 million euros, $180 million), the company said in a statement. Analysts polled by Bloomberg had forecast nearer 1.2 billion kronor.

Major appliance sales for the period soared 43 percent in North America and came in 25 percent ahead for Europe, the Mideast and Africa, together worth around 65 percent of global sales, while performance was weaker in Brazil and China.

A raft of exceptional items brought a net loss of 229 million kronor down from 2.1 billion kronor a year earlier.

Overall sales for the quarter were 31.26 billion kronor, up from 28.78 billion year-on-year.

Electrolux is seeking to snap up General Electric's appliance business for some 3.3 billion dollars which would lift it into the orbit of market leader Whirlpool. It needs approval from the US  Department of Justice which must lay aside concerns a deal would create a duopoly and hand Electrolux a US market share of some 40 percent.

In July the DOJ said it would sue to block the deal with the case due to be heard from November 9.

"We continue to explore the possibility of a reasonable settlement with the U.S. Department of Justice regarding the pending acquisition of GE Appliances," Electrolux director general Keith McLoughlin said, adding: "We are confident of the merits of our case".

Shares in Electrolux were up 0.7 percent in early afternoon trading in Stockholm.

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