Electrolux Q2 profit beats expectations despite North American weakness

Key facts

• Electrolux reported a Q2 operating profit of 1.2 billion Swedish crowns.
• This profit exceeded analyst expectations of 617 million Swedish crowns.
• Organic sales grew by 2% in the second quarter.
• The company highlighted weakening conditions in its North American market.
• Electrolux conducted a 9 billion Swedish crown rights issue in June.

Electrolux reported a second-quarter operating profit of 1.2 billion Swedish crowns ($124 million), surpassing analyst expectations of 617 million crowns. The Swedish appliance maker, known for brands like Frigidaire and AEG, saw organic sales grow by 2% in the April-June period. However, the company indicated that conditions weakened in North America, a crucial market that represents about a third of its sales and has struggled to achieve operating profit. Electrolux has been contending with weak demand and price competition for years. In June, the company completed a 9 billion Swedish crown rights issue to fund a partnership with Chinese rival Midea in North America, restructure its global operations, and reduce debt.