Electrolux to incur $70 million charge for U.S. overhaul

 Electrolux to incur  million charge for U.S. overhaul

(Reuters) - Swedish appliance maker Electrolux AB on Sunday said its North American business will incur costs of about $70 million (54.56 million pounds)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 (283.39 million pounds) 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.

(Reporting by Shubham Kalia in Bengaluru, editing by Louise Heavens)

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Updated Date: Dec 16, 2019 01:06:15 IST