Electrolux faces costs from manufacturing reshuffle
Moving into a new facility in South Carolina will cost the company around $70 million
Stocks impacted: Electrolux AB (ELUXb)
Swedish home-appliance maker said its business in North America will incur costs of $70 million in fourth quarter due to spending on moving into a new facility in South Carolina. The estimate is substantially higher than the previous one which came in at $25 million. The company is investing around $250 million in automation, digitalization and new food-preservation product platforms at its new facility in South Carolina. This transition resulted in some capacity constraints, affecting deliveries to some customers during this quarter. Electrolux also said its operating income will be hurt by de-stocking at a key U.S. customer and accounting adjustments from prior period. The full scope of the company’s investment program and streamlining measures are expected to generate around $372 million of annual cost savings.
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