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Bloomberg
Electrolux AB, the Swedish maker of Frigidaire appliances, said it will incur a bigger-than-expected financial hit from merging fridge-and-freezer factories in the US amid delivery disruptions.
The upgrade, combined with destocking at a key US customer and accounting adjustments, will shave $70 million off fourth-quarter operating income compared with a previous estimate of $25 million, according to a statement Sunday. Electrolux also said that cost-savings targeted for next year will take until 2021 to materialize. Shares slumped as much as 12% at the start of trading in Stockholm.
Electrolux is investing $250 million in automation and digitisation of a plant in Anderson, South Carolina, to replace one nearby and another slated for closure in St Cloud, Minnesota. The transition led to temporary capacity constraints that affected deliveries to customers.