Electrolux shares fell 11% after a Swedish home appliance manufacturer warned of a more significant than expected fourth-quarter profit fall in its North American division, which affected some shipments.
Electrolux said its investment program will continue to provide annual cost savings of around 3.5 billion Swiss francs.
Looking ahead: Last year, Electrolux shares were on the rise as the company tried to increase profitability amid concerns about tariffs that undermine the competitiveness of American business. Shares were trading almost 11% lower on Monday, to SKR223.50 by mid-morning in Stockholm, but still 20% higher than this year.
Jonas Samuelson, chief executive of Electrolux, tried to calm investors’ nerves by calling the profit warning “a temporary decline” and said the company expects Anderson’s capacity limits to be removed in the first half of next year. Last week, the company announced a leadership change, replacing Alan Shaw with Nolan Pike as the new head of North America. But a negative impact on earnings forecasts next year will affect stocks.