The US remains a burden for Electrolux. The ramp-up of the production of refrigerators/freezers in the new facility (Anderson) is taking longer than expected with a negative impact on volume. Furthermore, Electrolux is affected by the destocking at a big customer which is reorganising itself. Consequently, Q4 19 will be affected by higher costs ($-70m vs $-25m estimated previously) and the full effect of the cost savings is postponed to 2021 (vs 2020 previously).
16 Dec 2019
Adverse items in the US
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Adverse items in the US
Electrolux AB Class B (ELXC:FRA) | 0 0 (-0.4%) | Mkt Cap: 82,602m
- Published:
16 Dec 2019 -
Author:
Hélène Coumes -
Pages:
2
The US remains a burden for Electrolux. The ramp-up of the production of refrigerators/freezers in the new facility (Anderson) is taking longer than expected with a negative impact on volume. Furthermore, Electrolux is affected by the destocking at a big customer which is reorganising itself. Consequently, Q4 19 will be affected by higher costs ($-70m vs $-25m estimated previously) and the full effect of the cost savings is postponed to 2021 (vs 2020 previously).