Oct 20, 2014 7:09 AM
Electrolux buoyed by US growth
The Associated Press
STOCKHOLM (AP) Growth in the U.S. and efficiency gains in Europe helped Swedish home-appliance maker Electrolux post a 42 percent jump in third-quarter profits.
The company said Monday that it made a net profit in the July to September period of 933 million kronor ($130 million) as revenue swelled 6 percent to 28.8 billion kronor.
Electrolux CEO Keith McLoughlin told The Associated Press said he was "quite pleased with the result in what could be characterized as challenging macro conditions."
Last month, Electrolux ranked as the world's second-largest appliance maker after U.S rival Whirlpool announced a $3.3 billion acquisition of the appliances business of General Electric. That deal is expected to close next year.
Headquartered in Louisville, Kentucky, GE Appliances' products include refrigerators, freezers, cooking products, washers and dryers and air conditioners. The division, which has 12,000 workers at nine factories, earned $381 million on $8.3 billion in sales last year.
McLoughlin said the acquisition would result in "substantial synergies," but declined to comment on possible layoffs.
"Most of the synergies are going to be primarily in the sourcing and purchasing side," he said. "It's mostly about what we buy, so that's where the vast majority of our synergies are going to come from."
Electrolux has more than 60,000 employees, including 10,000 in North America where its regional headquarters are in Charlotte, North Carolina.
Other than its own brand, Electrolux sells under the Zanussi, AEG, Frigidaire and Eureka trademarks.