Electrolux profit beats forecast

STOCKHOLM: Home appliance maker Electrolux reported its best quarterly operating margin in almost seven years boosted by strong progress in its biggest market, North America, sending its shares up 6 percent to a record high.

The maker of white goods under brands such as Frigidaire, AEG and Zanussi as well as its own name has been squarely focused on boosting profitability since CEO Jonas Samuelson took charge early last year.

Efforts to boost margins include exiting unprofitable lines to focus on more lucrative business in areas such as kitchen and laundry products.

Operating earnings rose to 1.94 billion crowns ($234 million) from 1.56 billion a year ago, the Swedish company said.

That was ahead of a mean forecast of 1.73 billion in a Reuters poll of analysts. Its operating margin of 6.2 percent was its highest since the third quarter of 2010, and also marked the first time since that it had hit its 6 percent profitability target.

Analysts had forecast an operating margin of 5.5 percent in the quarter. Profitability in North America accounted for the main positive surprise with margins reaching 8.4 percent despite continued price pressure and declining private label sales.