Electrolux Posts 3rd Quarter Profit Increase Oct 23, 2007

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Electrolux AB said that third-quarter net profit rose 73% on strong sales, but warned that the weakening U.S. market and cost overruns in Europe added uncertainty to its full-year outlook. 

Net profit for the quarter ended Sept. 30 came to 762 million kronor (approx. US$119 million). Sales totaled 26.4 billion kronor ($4.1 billion), up from 26.1 billion kronor. 

The company reiterated its outlook that operating income in 2007 is expected to be somewhat higher than in 2006. Yet, it said the risk for further decline in the U.S. appliance market, continued increases in the cost of raw materials, and cost pressures on its European margins add uncertainty to the forecast. 

"Recently, market conditions in the U.S. market have weakened," said President and CEO Hans Straberg. "We still expect raw material costs to have an adverse effect on the group's operating income in the fourth quarter. At the same time, the group's recent product launches in Europe, which have been well received, have incurred higher than anticipated costs."

 

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