Electrolux sees extra U.S. costs hitting fourth quarter earnings

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Appliance maker Electrolux AB said on Sunday its North American business would t...

FILE PHOTO: The Electrolux logo is seen during the IFA Electronics show in Berlin, Germany September 4, 2014. REUTERS/Hannibal Hanschk

The company is investing about $250 million in new product platforms at a new facility in Anderson, South Carolina. The plant will replace manufacturing in St Cloud, Minnesota and manufacturing at another facility in Anderson. The company, which previously forecast a negative impact of $25 million on fourth quarter earnings from the factory plan, said it expected the capacity constraints in Anderson to be gradually resolved in the first half of 2020.

Electrolux said its new investment program and streamlining measures were on track to generate about 3.5 billion crowns of annual cost savings, with full effect from 2024. But it slashed the forecast for 2020 to 200 million crowns from 800 million crowns.

 

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I didn’t know they were still in business.

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 /  🏆 2. in JP

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