Electrolux profit rises on North American turnaround

Electrolux AB reported a higher second-quarter profit as its North American business returned to profitability, offsetting weaker performance in Europe.

The Swedish home-appliance maker said Friday that its operating income for the quarter rose to 797 million Swedish kronor from 419 million kronor a year earlier.

The North American unit, which had posted losses in previous periods, recorded a positive operating income, which the company attributed to price increases that offset costs from new U.S. tariffs.

Group net sales fell to 31.3 billion Swedish kronor from 33.8 billion kronor, though organic sales grew 1.8% on strength in the Americas.

Sales declined slightly in its Europe, Asia-Pacific, Middle East and Africa business area, where the company noted consumers were shifting to lower-priced products.

The quarter's operating income included a one-time gain of 180 million kronor from the sale of its Kelvinator trademark portfolio in India.

Net income for the period was 178 million kronor, compared with a loss of 80 million kronor in the same quarter last year.

Operating cash flow was negative, impacted by an increase in working capital and the payment of a previously announced French antitrust fine, the company said.

"The second quarter results demonstrate our commitment to deliver on our strategic priorities amid challenging market conditions," said President and CEO Yannick Fierling.