Electrolux today announced that results for the business area Major Appliances North America will be significantly lower than anticipated in the first quarter.
Electrolux operations continue to be negatively impacted by the transition of the product ranges within refrigeration and freezers. This transition is a consequence of the new energy requirements imposed during the second half of 2014. Earnings are also affected by the ramp up of the cooking plant in Memphis, which has been slower than anticipated. Results for the business area in the first quarter 2015 will therefore be negative. Electrolux will publish its full report for the first quarter of 2015 on April 24 at 0800 CET.
A program to restore profitability and increase efficiency is under way. It will require most of 2015 before these actions will show full effect.
The preparation work for the integration of GE Appliances is progressing well and Electrolux remains confident that the transaction will be closed in 2015. During the integration planning, additional synergies of USD 50 million have been identified, in excess of the previously communicated USD 300 million. Total cost synergies are now estimated to USD 350 million.
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Contact Electrolux Press Hotline, +46 8 657 65 07.
Electrolux discloses the information provided herein pursuant to the Securities Market Act and/or the Financial Instruments Trading Act. The information was submitted for publication at 15.00 CET on April 8, 2015.