Electrolux Profits Up Big On Major Cost Cutting Scott Olson/Getty Images

Electrolux Profits Up Big On Major Cost Cutting

The company had struggled to turn a profit for 18 months before its cost-cutting program -- including about 2,000 layoffs -- turned results around in the third quarter last year.

STOCKHOLM - Swedish white goods maker Electrolux said Wednesday its profits tripled in 2014 as it looks to North America for growth with the acquisition of General Electrics' appliance division.

Electrolux's annual earnings soared to 2.24 billion kronor ($273 million dollars, 240 million euros).

The company had struggled to turn a profit for 18 months before its cost-cutting program -- including about 2,000 layoffs -- turned results around in the third quarter last year.

"The initiatives to restore profitability in our operations in Europe continue to show good results." Chief executive Keith McLoughlin.

"The initiatives to restore profitability in our operations in Europe continue to show good results," chief executive Keith McLoughlin said in a statement.

With its purchase of GE Appliances, the Swedish is looking to get a bigger share of the US market, where it recorded an 8-percent rise in demand for white goods in the fourth quarter of 2014.

Electrolux predicted it will grow faster in North America than in Europe this year.

Annual turnover increased by 3 percent to 112.1 billion kronor.

In mid-morning trading, Electrolux's shares jumped 9.6 percent on the Stockholm Stock Exchange.

Copyright Agence France-Presse, 2015

 

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish