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Electrolux: cost savings more than offset declining sales.

(CercleFinance.com) - Electrolux reported higher quarterly earnings on Friday as the Swedish home appliances maker managed to keep costs under tight control, which sent its shares up over 5% in morning trading.

The company reported third-quarter operating income of 1.96 billion Swedish kronor, up from 1.83 billion kronor a year ago, giving a margin of 6.7%, compared to 5.9% last year.

The group said product mix improvements and higher cost efficiency contributed to the "favorable earnings trend" during the quarter.

As net sales declined by 5% to 29.3 billion euros, the cost of goods sold has also decreased, reaching 23.2 billion, compared with 24.2 billion kronor a year ago.

In organic terms, net sales declined by 3.2%, mainly due to North America.

After this report, Electrolux B shares jumped 5.5% to 294.1 Swedish kronor, outperforming the benchmark OMXS30 index, which was up only 0.2%.

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