Electrolux: Fall 6.6% after profit warning for North America
2015-04-08 15:45
(SIX) white goods group Electrolux falling 6.6 percent to 235.80 was on the Stockholm Stock Exchange after the company, in the afternoon, warned that profits in Major Appliances North America will be significantly lower than expected during the first quarter. "The major adjustments are implemented to meet the new Energy requirements for refrigerating appliances continues to affect the Group business negatively. The new energy requirements were introduced in the second half 2014. Earnings development is also affected by the start-up of cooking manufacturing in the new factory in Memphis has been slower than estimated. The operating result will therefore be negative for the first quarter of 2015, "the company wrote. Also in the fourth quarter of 2014 was impacted by Electrolux above mentioned things and the margin in the business area Major Appliances North America was then well below what analysts consensus had expected. The operating margin came in at 1.5 percent, compared with expectations of 5.1 percent. In an interview with SIX News Post closing assessed the company's CEO Keith McLoughlin business area Major Appliances North America had the opportunity reach the same operating margin in 2015 as in 2014, but it would be difficult given a tough first half. "I think Q1 will be similar to Q4 and then it gets better in Q2 and after first half we through it, "said Rooney. He said that 2015 will be a mirror image of what it looked like in 2014, when the company achieved an operating margin of 5 percent, after a strong first six months, but weak end of the year. According to the latest estimates from the Financial Inquiry was expected Electrolux North America division account for 44 percent of full-year profit 2015 of 5.6 billion, in terms of operating profit excluding recurring items. Jonathan Axelsson +46 8586163 77 mailto: jonathan.axelsson@six-group.se www.blogg.six.seSIXNews SIX News
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