Electrolux: warns of higher costs in the US, shares hit
(CercleFinance.com) - Electrolux warned of higher costs at its US operations this quarter, as the Swedish household appliance maker consolidating its manufacturing operations, sending its shares down over 11% on Monday morning.
The company said it expects costs related to the transition to new product platforms, volume effects and other matters to have a combined impact of approximately 70 million dollars in the fourth quarter.
The impact on operating income in the fourth quarter was previously estimated to be at around 25 million dollars.
Electrolux is currently investing 250 million dollars in automation, digitalization and new food preservation product platforms at a new facility in South Carolina, replacing a factory in Minnesota that closed this quarter.
Looking ahead, Electrolux expects capacity constraints to be gradually resolved in the first half of 2020.
Its shares, listed on the Nasdaq Nordic market, were down 11.8% after this announcement.
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