Electrolux issues profit warning for North America unit

AP News
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Posted: Apr 08, 2015 9:47 AM

STOCKHOLM (AP) — 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.

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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.