© Reuters. Interiors of Electrolux R&D facility are pictured at their plant in Pordenone

(Reuters) – Swedish appliance maker Electrolux AB (ST:) on Sunday said its North American business will incur costs of about $70 million in fourth quarter as part of costs incurred to move into a new facility in South Carolina.

Electrolux is investing about $250 million in new product platforms at a facility in Anderson, South Carolina, and the plant will replace manufacturing in St Cloud, Minnesota, and manufacturing at another facility in Anderson, it said.

The company also expects a negative impact to its operating income due to accounting adjustments from previous quarters and a reduction in inventory by a U.S. customer.

The new investment program and streamlining measures is on track to generate about 3.5 billion crowns ($363.59 million) of annual cost savings, with full effect from 2024, the Swedish company said.

The capacity issues in Anderson are expected to be gradually resolved during the first half of 2020, it added.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link