ELUXY AB Electrolux (PK)

STOCKHOLM—Shares in Electrolux AB surged Thursday after the Swedish household-appliance maker posted a strong rise in first-quarter net profit, propelled by increasing demand in Europe and North America and beating expectations.

Electrolux's quarterly net profit more than doubled to 875 million Swedish kronor ($108.23 million), from 339 million kronor a year earlier. Analysts polled by FactSet had estimated a net profit of 675 million kronor.

Shares were up 7.9% in morning trading Thursday.

First-quarter revenue came in at 28.11 billion kroner, slightly below expectations, compared with 29.09 billion kroner in the first quarter of 2015.

Demand in the first quarter for core appliances increased 3% Western Europe increased and by 8% in North America, Electrolux said.

Operating income for major appliances, which include washing machines, refrigerators and other large kitchen equipment, was up 49% in Europe, the Middle East and Africa, while sales of major appliances recovered in North America.

"The appliance market continued to grow in Western Europe and was particularly strong in Italy, Germany and the U.K.," said Chief Executive and President Jonas Samuelson. "Major Appliances North America achieved a significant turnaround compared with the weak first quarter 2015."

Mr. Samuelson said he expected the U.S. market demand for appliances to grow 4% to 5% in 2016.

By contrast, sales of small appliances, mostly vacuum cleaners, declined in Europe, North America and Brazil, while sales of professional equipment rose. Mr. Samuelson said its Russian business appeared to have stabilized at low levels following a significant downturn last year.

Changes in exchange rates hit operating income to the tune of 720 million kronor, Electrolux said.

Electrolux's first-quarter results come a few months after Europe's largest appliance maker by sales saw a protracted $3.3 billion deal to acquire General Electric Co.'s home-appliance business collapse.

Late last year, GE and Electrolux canceled the agreement after legal wrangles with U.S. antitrust regulators, which resulted in the resignation of Electrolux Chief Executive Keith McLoughlin, a management reshuffle and the payment of a termination fee of $175 million by Electrolux to GE, causing a fourth-quarter loss.

Electrolux said first-quarter earnings per share were at 3.04 Swedish kronor.

Write to Matthias Verbergt at Matthias.Verbergt@wsj.com

(END) Dow Jones Newswires

April 28, 2016 04:25 ET (08:25 GMT)

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