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Electrolux raises European outlook after Q4 profit beat

Electrolux sells under brands such as AEG and Zanussi as well as its own name
Electrolux sells under brands such as AEG and Zanussi as well as its own name

Global home appliances maker Electrolux has forecast decent market growth on both sides of the North Atlantic this year after cost cuts powered it to a bigger than expected rise in fourth quarter earnings. 

Electrolux sells under brands such as AEG and Zanussi as well as its own name.

It comes off a year where cost cuts from years of plant closures kicked in to fortify earnings amid tepid demand outside a firmly expanding US market. 

The company's chief executive Keith McLoughlin struck an modestly upbeat note for demand in 2015, saying the European market should grow 1-2%, up from a previous outlook for 0-1%.

He also confirmed a forecast for 3-5% growth in North America. 

Electrolux, vying for market leadership with US Whirlpool and China's Haier, said adjusted operating earnings rose to 1.47 billion crowns ($179.5m) from a year-ago 1.22 billion, just beating a mean forecast of 1.43 billion in a Reuters poll of analysts.

The Swedish group is benefiting from falling prices on raw materials such as steel while a bigger share of costs than sales in dollars has meant the steady gains for the greenback versus other currencies have become a growing headache. 

Electrolux is also awaiting approval for its biggest ever deal, the $3.3 billion purchase of General Electric's appliances business agreed last year which would double its US sales and tap into that market's rosier growth outlook.