Electrolux: warns of non-recurring items in third-quarter
(CercleFinance.com) - Electrolux said on Wednesday that it may write down as much as 400 million Swedish kronor (about 38 million euros) of non-recurring items in the third quarter from the restructuring measures that it announced today.
The Swedish home appliance maker today decided to initiate an efficiency-drive plan throughout the group, which will lead to restructuring charges of approximately 1.6 billion Swedish kronor in the third quarter (approximately 150 million euros).
The plan will also impact approximately 875 non-production positions globally, it said.
After reviewing its manufacturing operations in Hungary, Electrolux has decided to outsource production of vacuum cleaners, which will lead to approximately 800 layoffs.
Electrolux will also report a negative non-recurring item of approximately 200 million Swedish kronor due to a legal settlement in the United States.
However, these amounts should be partly outweighed by a favorable court ruling in Brazil that will enable Electrolux to recover overpaid tax for 2002-2014, leading to a positive non-recurring item of approximately 1.4 billion Swedish kronor (130 million euros), the group said.
Electrolux shares were up 0.6% in Stockholm after all these announcements were made.
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