The reforms that Electrolux wants to do in the US will cost the goods manufacturer more money than was initially taken into account. Among other things, the Swedish company wants to merge cooling and freezing factories. The adjustments suppress the operating result in the current quarter to $ 70 million. That is considerably more than the 25 million dollars that were previously communicated. In addition to the extra costs, the reduction of stocks at a large American customer also puts pressure on the profit.
Electrolux, which recently announced a major reorganization, said it is investing $ 250 million in automation and digitization of a plant in South Carolina. In addition, a factory in Minnesota is closed. The transition temporarily limits capacity, with certain deliveries to customers being delayed. The problems must be solved in the first half of 2020.
Investors were shocked by the message. The stock lost 10 percent in value on Monday in early trading.
Lesley Woutersen, one of the co-founders of the EconomicInform gives away all of his free time to the project. He is interested in stock exchange and digital assets. Lesley can be reached by lesley.woutersen@economicinform.com.
