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Electrolux warned Wednesday that US tariffs would cost the Swedish company about $ 10 million in the second half of 2018. Bloomberg report and Reuters.
Last week, the United States wrote an additional list of products imported into China, worth $ 200 billion, which threatens to bill them in September. The new list of products includes food, chemicals, minerals, tobacco, electronics, stationery
Washington's decision comes after the United States and China, the first two economies of the world. world, introduced tariffs the first week of July for imports of 34 billion dollars, Beijing accusing Washington of triggering the worst trade war in history.
"They have not yet entered into force, so it's pretty hard to estimate the impact," said the general manager of Europe's largest home appliance maker, Jonas Samuelson
Electrolux imports coins from China, which appear on the billing list in September
The company also explained the imposition of tariffs on steel and aluminum imported to the United States will lead to higher raw material costs because it buys in the United States the steel that it uses to manufacture
In the United States, Electrolux owns two factories in Tennessee and South Carolina.
In January, Electrolux announced that it would invest $ 250 million to expand and modernize its plant in North America. Springfield, Tennessee, but in March postponed investment because of tariffs, according to media reports.
The company also expects a cost of 1.8 billion Swedish kroner ($ 200 million) in 2018 due to the rise in raw material prices compared to the previous estimate of 1.6-1.8 billion Swedish kroner.
Electrolux, Frigidaire, AEG and Anova are expecting 2% growth in North America in 2018, compared to the previous forecast of a 2-3% lead
Electrolux, competing with Whirlpool, LG Electronics and Haier Group, will reduce expenses to offset the cost Samuelson accounted for inflation and rethought investment in North America
In the second quarter of 2018, adjusted operating income fell to 1.65 billion Swedish kronor, compared to 1.92 billion Swedish kroner. similar in 2017, but slightly above analysts' estimates of SEK 1.61 billion
In recent quarters, the Swedish company has faced rising raw material costs, particularly steel. , which puts pressure on profit margins
Electrolux, a company that sells washing machines, refrigerators and stoves under the brands Electrolux, AEG, Zanussi and Frigidaire, has been present in Romania since 1995 through the commercial division and Bucharest marketing and Satu cooker factory (1966), the largest (99.52% share)
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