Electrolux says costs cuts on track at North America plants
FILE PHOTO: The Electrolux logo is seen during the IFA Electronics show in Berlin, Germany September 4, 2014. REUTERS/Hannibal Hanschke WHR -0.78% Add to/Remove from Watchlist Add to Watchlist Add Position
Position added successfully to:
Please name your holdings portfolio Type: BUY SELL Date: Amount: Price Point Value: Leverage: 1:1 1:10 1:25 1:50 1:100 1:200 1:400 1:500 1:1000 Commission: Create New Watchlist Create Create a new holdings portfolio Add Create + Add another position Close
STOCKHOLM (Reuters) – Electrolux, Europe’s biggest appliances maker, said on Monday it was on track to slash costs at underperforming plants in North America as part of its ongoing efficiency programme in the region.
“Cost per unit in the Anderson and Springfield factories will significantly improve near-term, reaching competitive cost levels,” the Swedish group said in a statement ahead of presentations to investors later in the day.
“Another key earnings contributor for business area North America is commercial growth in higher value categories, which the investments in new and innovative modular product architectures enable,” it said.
Electrolux has invested heavily in its North American plants in recent years, but the pandemic and component shortages have delayed the ramp-up of local production.
The group ahead of the capital markets day in Stockholm reiterated a business and market outlook given in February, and its financial targets.
It last month predicted lower sales volumes in 2023 due to weaker consumer confidence and demand across Europe, North America and Latin America and said it may not be able to fully pass on higher energy and labour costs.
The rival to Whirlpool (NYSE:WHR) repeated it had “a clear path to reach” a target that the aftermarket segment will account for 10% of group sales in 2025.