Electrolux says costs cuts on track at North America plants
Reuters
Published Mar 20, 2023 04:33AM ET
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.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.