Electrolux Reports Declined Q2 Profit Jul 19, 2006

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Sweden-based appliance maker Electrolux reported second-quarter profit declined 2.6 percent because of the spinoff of its outdoor products unit, Husqvarna. Electrolux said it earned 1.17 billion kronor (approx. U.S. $159 million) in the 3 months ending June 30, down from 1.20 billion kronor (approx. $163 million) in the same period last year.

Net sales excluding Husqvarna rose 4.5 percent to 25.32 billion kronor ($3.45 billion), supported by strong demand, especially in North and South America, the AP reported.

Excluding Husqvarna, which was listed as a separate company in June, Electrolux said its profit grew 24 percent to 541 million kronor ($73.6 million) from 436 million kronor (approx. $59.2 million) as demand for appliances grew.

Net profit at Husqvarna fell to 624 million kronor (approx. $84.9 million) in April and May from 760 million kronor (approx. $103 million) for the full April to June quarter in the previous year.

Electrolux took a 43 million kronor (approx. $5.9 million) charge in the second quarter for the closure of a factory in Torsvik, Sweden. In North America, the company said lower production costs at its new plant in Juarez, Mexico, were offset by startup costs and higher costs of raw materials.

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