Electrolux cites new energy rules in N.A. profit warning
by The Associated Press
The Swedish appliance maker blames new energy requirements imposed in 2014 for poor Q1 results
STOCKHOLM—Home appliance maker Electrolux has issued a profit warning for its North American division, saying its first-quarter results will be worse than anticipated.
The Swedish company said April 7 that its Major Appliances North America unit would post a loss in the quarter.
Electrolux blamed changes to its product ranges in refrigerators and freezers due to new energy requirements imposed in the second half of 2014. It also cited a “slower than anticipated” ramp-up of a cooking plant in Memphis.
Electrolux will release its first quarter report on April 24.
The company announced last year it was buying the appliance business of General Electric for $3.3 billion in a deal it expects to close in 2015.
Based in Stockholm, the company sells appliances under the Electrolux, AEG, Zanussi and Frigidaire brands.
