Electrolux, the world's second biggest home appliances maker, posted a core profit that just missed expectations and forecast only a modest improvement in demand this year.
Earnings before interest and tax rose to 2.02 billion Swedish crowns ($277.7 million), excluding extraordinary items, from a 389 million crown loss a year ago.
The firm, which has struggled with sluggish demand due to the global downturn, said price stability and significant cost reductions were behind the improved results.
The white goods giant proposed a dividend of 4.00 crowns per share, compared with no dividend in 2008 and beating expectations for a 3.10 crown dividend in a Reuters poll.
Sales for the quarter landed in line with market forecasts at 28.2 billion crowns.
However, the company was cautious about the outlook for 2010.
"There are no indications of a strong recovery in any of the group's main markets, and therefore we only expect a modest improvement from the currently low level of market demand for appliances in 2010," the company said in a statement.
Electrolux, whose brands include AEG-Electrolux and Frigidaire, said the prices of many raw materials had begun to rise and anticipated costs for its most important raw materials would increase further as the global economy recovered.
Whirlpool, the world's biggest appliance maker, earlier this week reported a quarterly profit of more than double the previous year due to cost cuts and improving sales. It forecast 2010 earnings above Wall Street expectations.
Reuters