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Electrolux CEO upbeat despite profits fall

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Electrolux CEO upbeat despite profits fall
10:01 CEST+02:00
Swedish home appliance maker Electrolux reported a 15 percent slump in third quarter profits on Wednesday, due to lower sales in Europe and the United States and exchange rate losses.

"Substantial increases in raw material costs and increased investments in marketing account for somewhat lower earnings than last year," said Electrolux CEO Hans Stråberg in a statement on the report.

Despite the dip in profits Stråberg was upbeat over the firm's six percent operating margin for the first three quarters.

"This result strengthens my conviction that our goal of a six percent operating margin for the full-year 2010 is within reach," he said.

In the July to September quarter Electrolux posted profits of 1.38 billion kronor (€148 million) against 1.63 billion kronor a year earlier, while sales fell five percent to 26.33 billion kronor.

Dow Jones Newswires had forecast net profits of less than 1.12 billion kronor and sales of 27.33 billion.

"Strong sales growth in Asia/Pacific and Latin America partly offset lower sales volumes in Europe and North America," the firm said in a statement.

Hans Stråberg confirmed in his comments that he is to leave the firm at the end of 2010, after 27 years employment. Stråberg is set to be replaced by American Keith McLoughlin next year.

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