Electrolux has seen a 22 percent increase in first-quarter net profit to 560 million kronor (£52 million) thanks to strong sales and increased impact in emerging markets.
Electrolux’s revenues grew by a record 10 percent in the first three months of 2012 to 25.8 billion kronor, from 23.4 billion kronor in the same period a year earlier. Net profit in the first quarter of 2011 was 457 million kronor.
Shares bounced up by more than 7 percent to 148.10 kronor ($21.94) on the Stockholm Stock Exchange on the news.
Electrolux boss, Keith McLoughlin the CEO, offered a positive outlook, saying the second quarter was expected to be even better and that the second half of the year would be stronger than the first half of the year.
Electrolux reported “strong organic growth” in Latin America, the introduction of higher prices in North America as well as growth in market share in Europe after several quarters of decline.
“We continued to improve our cash flow as a result of our ongoing efforts to improve working capital,” said McLoughlin, “In the first quarter, net sales grew by more than 10 percent, which is a record total sales figure for our appliance business.”
But he cautioned that the price of raw materials would increase over 2011 and that Electrolux does not expect that demand in mature markets will recover in the first half of the year, having fallen 2 percent in Western Europe and 9 percent in North America in the first quarter.
Electrolux is more commonly known for the brands it sells in the UK such as AEG, Zanussi, Trcity Bendix and John Lewis own brand products.