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 The Stockholm-headquartered group said net profit slipped to 1.4
billion kronor ($210 million) from 1.6 billion kronor in the same
three months a year ago.
Group CEO Hans Straberg, who last month announced his resignation,
said that aside from spending more money on branding, raw material
costs in the quarter rose by almost 500 million kronor compared with
last year. He also warned that expenses were likely to increase next
year as prices have begun to rise for raw materials, including
steel, plastic and some metals such as copper and aluminum.
Electrolux spokesman Tobias Hagglov said especially the price for
copper has increased on the broader market this year due mainly to
higher demand, affecting the white-goods industry as a whole.
Despite this, Straberg reiterated his forecast that Electrolux will
reach its goal of a full-year operating margin of 6 percent, saying
he believes it "is within reach."
The Electrolux share fell 1.3 percent to 167.60 kronor ($25.12) in
trading on the Stockholm stock exchange.
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Electrolux, which makes refrigerators and vacuum cleaners, recorded
quarterly revenues of 26.3 billion kronor, down from 27.6 billion in
the same period in 2009. The number was mainly weighed down by
weaker demand in Europe and North America as well as negative
effects from changes in exchange rates.
Straberg said the company's operations in Asia and the Pacific
reported record earnings. "This is a result of their taking advantage of strong
growth in Southeast Asia, turning around the negative trend in China and
successfully maneuvering in a tough Australian market," he said.
Straberg will be replaced by Vice President Keith McLoughlin on Jan.
1.
[Associated
Press; By LOUISE NORDSTROM]
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