Swedish appliance maker Electrolux today reported better than expected third quarter results but said it would also close two US factories in a continued cost-cutting drive.
Electrolux, which on Friday announced the closure of a Spanish plant with the loss of 450 jobs, said it would shut two washing machine factories in Iowa which employ 950.
It said it earned in the three months to September a net profit of 1.63 billion kronor (€160m), up 92% from a year earlier on the back of low raw material costs and previous cost cutting measures. Analysts had forecast third quarter net profit at 782 million kronor.
'Almost everything went our way this quarter. A cyclical trough in commodity prices and maintained prices have been decisive for our earnings improvement. Other contributing factors are a better product mix and significant cost reductions,' the company said.
It is ranked as the world's second largest home appliance manufacturer.
At the same time, it cautioned that 'demand continues to be weak, although the rate of decline has slowed down.'
Electrolux, after carrying out several reorganisations in recent years in a bid to cut costs, announced the elimination of 3,000 jobs in December in response to the global economic slowdown.
