Both Whirlpool and Electrolux have forecast a strong rebound in demand from Europe, suggesting consumer confidence may be turning the corner after being battered by a debt crisis and austerity measures.
Whirlpool profits have surged by 75% in the second quarter on rising sales in all of its markets, especially Europe and the United States, where a recovery in the housing sector is said to have boosted demand for appliances.
Electrolux posted a slight drop in earnings due in part to currency effects, but reported the first rise in total industry shipments of appliances in Europe in six quarters.
Electrolux Chief Executive Keith McLoughlin said he believed Europe’s darkest days were behind it.
“While Southern Europe continues to lag, there are some positive trends in Germany, the Nordics in particular and the UK,” he said in an interview with Reuters.
Electrolux’s prediction of a rebound in demand for its products in Europe in 2014, and its raised forecast for U.S. sales, sent its shares up 5.3 percent in European trading.
Whirlpool’s gains were led by big unit sales increases in Europe and Latin America, where revenue rose nearly 6%, and the USA where revenue was up 5.1%.
“We are seeing, we think, sustainable, profound demand recovery in the U.S. marketplace,” Jeff Fettig, Whirlpool’s chairman and CEO, told analysts on a conference call. “We’re very pleased with where we are.”
Marc Bitzer, Whirlpool’s North American president, told Reuters that the improving picture in the United States was driven by housing, including both new construction and existing home sales.
The company believes the uptick in consumer sentiment driving the housing rebound is sustainable, he said. “We expect continued growth as we progress throughout the year.”
Whether these forecasts and predictions are seen to be true or, whether they are merely wishful thinking remains to be seen but for now, profits and unit sales do appear to be on the rise.
