STOCKHOLM, Sweden (AP) - Swedish appliance maker Electrolux on Thursday posted a 59 percent increase in second-quarter net profit but said it expects to see flat demand in the second half of the year.

Net profit for the three months ended June 30 rose to 1.85 billion kronor (dlrs 201 million) from 1.16 billion kronor a year earlier.

Sales fell slightly to 37.22 billion kronor (dlrs 4.1 billion) from 37.46 billion kronor. Group operating margin rose to 7.3 percent in the second quarter from 5.4 percent in the same quarter of 2001.

Electrolux chief executive Hans Straaberg said the major part of the improvement in operating profit during the first half of the year was due to increased demand in the United States.

"The U.S. market showed a somewhat stronger upturn than expected, while demand in Europe was slightly weaker and in line with our expectations," he said in a statement.

Operating profit for consumer durables in North America in the second quarter rose to 1.34 billion kronor (dlrs 146 million) from 685 million kronor a year earlier.