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STOCKHOLM, Feb 1 (Reuters) - Home appliance maker Electrolux reported a fourth-quarter profit within market expectations on Wednesday, saying that its operating margin increased slightly to 5 percent as it sought profitability in weak markets.
The Swedish rival of U.S. Whirlpool Corp and maker of Electrolux, Frigidaire, AEG and other household appliance brands said it continued to expect market demand in North America to grow between 2-3 percent this year.
The company has focused squarely on turning its back on weak profitability in its North American business.
The company said operating earnings rose to 1.62 billion Swedish crowns ($184.98 million)from a year-ago 202 million loss - roughly in line with a mean forecast of 1.67 billion in a Reuters poll of analysts..
Last year's loss was weighed down by the failed acquisition of GM appliances after the deal was blocked by US regulators.
Electrolux said its operating margin came in at 5 percent in the fourth quarter compared with 4.6 percent in the same quarter last year as it focused primarily on driving sales of its most profitable product ranges. Last year's margin excluded the cost of the failed GE acquisition.
Electrolux also kept its 1 percent growth outlook for its European markets, reporting healthy profits and margins for its Major Appliances in Europe Middle East and Africa despite severe currency headwinds.
Competitor Whirlpool, the world's largest maker of home appliances, reported lower-than-expected fourth-quarter earnings, hurt by a decline in sales in the United Kingdom following the vote in June to leave the European Union.
Electrolux, which also competes with Asian firms such as LG Electronics and Haier Group, has benefited from decent overall demand in Europe over the last year.
($1 = 8.7579 Swedish crowns) (Reporting by Helena Soderpalm and Alistair Scrutton)