UPDATE 2-Electrolux shares soar as long-awaited European demand returns

viernes 25 de abril de 2014 08:00 GYT
 

* Adjusted EBIT 749 mln SEK vs forecast 541 mln

* Sees European market growth of 1-3 pct in 2014, higher than pvs forecast

* Sticks by forecast for U.S. appliance market growth of 4 pct (Adds CEO, analyst comment, Whirlpool results)

By Simon Johnson and Helena Soderpalm

STOCKHOLM, April 25 (Reuters) - Electrolux, the world's second-biggest home appliances maker, said on Friday its European markets were finally growing again and that a recovery in the United States would continue, sending its shares up nearly 10 percent.

Electrolux, a smaller rival to America's Whirlpool, delighted investors who have watched it suffer from weak economies and currencies in Europe and Brazil that cost cuts and improvement in the North American market could not offset.

"You will see 8-10 percent earnings upgrades on this," Daniel Cunliffe, analyst at Nomura, said on Friday.

Electrolux said markets such as Germany, France and Italy had picked up and forecast demand would increase 1-3 percent this year in Europe - which accounts for around one third of sales - rather than the 0-2 percent it previously expected.

Helped by cost cuts, operating income in Europe rose to 142 million Swedish crowns ($21.59 million) in the quarter from 11 million in the year ago period.   Continuación...