Electrolux Profit Up 77% on Strong Sales

STOCKHOLM—Swedish household-appliance maker Electrolux AB on Wednesday posted a significant rise in second-quarter net profit, propelled by strong sales in Europe and North America, but warned on the impact of Brexit.

Electrolux's net profit for the three-month period rose 77% to 1.08 billion ($0.126 billion) Swedish kronor, from 608 million kronor a year earlier, in line with analysts' expectations.

Revenue was slightly below expectations at 29.98 billion Swedish kronor, 4% less than 31.36 billion kronor in the corresponding period a year earlier. Electrolux said the decline largely stemmed from the negative impact of a strong U.S. dollar.

Electrolux said sales of major appliances in Europe, the Middle East and Africa, as well as North America, which account for nearly 70% of the company's total revenue, were on the rise. Major appliances include washing machines, air-conditioners, as well as refrigerators and other large kitchen equipment.

The Swedish company, which also makes appliances under brand names such as AEG, Zanussi, Molteni and Frigidaire, raised its European demand forecast for appliances to between 2% and 4% growth in 2016. But while it said growth was particularly strong in Spain, the Nordics and the U.K., it warned on the effects of the British vote to leave the European Union.

The positive trend in earnings offset currency headwinds related to the weakening of the British pound in the second quarter, but Electrolux said future results might be more heavily impacted.

"Following the Brexit referendum, the outlook for U.K. demand and the British pound is uncertain," said Electrolux CEO Jonas Samuelson.

Electrolux's sales of small appliances, mostly vacuum cleaners, were down 15% in the quarter, while demand for appliances in Latin America remained weak, the company said.

Write to Matthias Verbergt at [e-mail]

(END) Dow Jones Newswires

July 20, 2016 04:15 ET (08:15 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.