Electrolux Had a Strong Quarter, but Progress in North America Needed

Dow Jones07-30

1042 GMT - Electrolux reported a stronger-than-expected second quarter thanks to strong organic sales growth and operating margin improvement in most regions, while North America remains challenging, AlphaValue analyst Helene Coumes writes. The Swedish appliance maker's earnings were supported by significant cost savings, while non-recurring costs related to the company's Midea Group partnership impacted reported results, Coumes adds. Electrolux and Midea formed a long-term strategic partnership in North America to cut costs, optimize manufacturing and boost product development. "The share price reacted positively, but further upside will depend on the successful execution of this partnership and the recovery of the North American operations." Shares fall 2.4% after rising 22% Wednesday.

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