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Electrolux Loss Less Than Expected

Published tisdag 14 februari 2006 kl 11.52
Electrolux strikers in Nuremburg

Electrolux, the world’s biggest home appliance maker, reported a near halving of net profit Tuesday, because of heavy restructuring costs.

But the 44.5 percent drop to 224 million dollars in net profit was still above forecasts, and shares in the maker of vacuum cleaners, washing machines, refrigerators and freezers rose more than 5 percent after the report.

Meanwhile, the company’s labor conflict in Germany has escalated. After CEO Hans Stråberg said in a newspaper interview during the weekend that the strike at the AEG factory in Nuremburg may mean Electrolux will close the plant earlier that previously announced, the IG Metall union has broken off negotiations.

Workers are striking to protest the company’s plans to move production to Poland.

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