* Sees moderate growth in main markets 2017
* Expects cost efficiency boost of 1.6 bln SEK
* Shares up 2.9 pct, top gainer in sector
(Adds analysts, updates shares)
STOCKHOLM, Dec 9 Electrolux expects
slower growth on both sides of the North Atlantic next year but
the home appliance maker said its cost efficiency drive would
help boost earnings.
The Swedish maker of Electrolux, Frigidaire, AEG and a
string of other household appliance brands, forecast market
demand would grow 1 percent next year in Europe and 2-3 percent
in North America.
"Market demand in Electrolux's largest markets, Europe and
North America, is expected to grow moderately," it said in a
statement providing its first outlook for 2017.
Electrolux, a rival of Whirlpool of the U.S. and
Asian firms such as LG Electronics and Haier Group
, said market demand had been positive in Europe this
year though it had seen recent signs of slower activity in some
markets, including Britain.
Facing modest market growth next year, Electrolux said it
expected improved cost efficiency to boost earnings by 1.6
billion crowns ($175 million) next year, excluding the impact of
raw materials and currency swings.
Shares in the company were up 2.9 percent by 0837 GMT, the
biggest gainer in the STOXX Europe 600 Personal & Household
Goods Index, with analysts attributing the gain to the
outlook for cost savings.
"All in all, most of the expectations are in-line to
slightly weaker than we had expected. However, the net cost
efficiency of SEK 1.6 billion is substantially higher than
expected," Pareto Securities said in a note.
In October, Electrolux stuck to a forecast for 2-4 percent
growth in Europe this year, but said signs of weakness in
markets such as Britain, which voted in June to leave the
European Union, meant growth was likely to come in at the lower
end of that range.
It also forecast market demand for appliances in North
America to grow by 3-4 percent in 2016.
The company said on Friday it expected market demand in
Argentina and Brazil combined, which represent the majority of
its business in Latin America, to fall by about 5 percent in
It also said raw material costs were expected to increase by
approximately 900 million crowns in 2017.
($1 = 9.1430 Swedish crowns)
(Reporting by Johannes Hellstrom; editing by Keith Weir and