Electrolux issues profit warning for North America unit, citing new energy requirements
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 Wednesday 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.