(CercleFinance.com) – Electrolux announced on Monday that it is maintaining its objective of an operating margin of more than 6% in the medium term, which it intends to achieve in particular by improving its performance in North America.
At an investor day today, the Swedish appliance maker’s chief executive, Jonas Samuelson, stressed that the turnaround of the North American subsidiary remains a ‘key’ component of its strategic plan .
To this end, the group has planned to launch a cost reduction program which should generate savings of four to five billion Swedish crowns (360-450 million euros) this year, then seven billion crowns in 2024 (630 millions of euros).
Electrolux expects these initiatives to enable its North American operations to generate positive free cash flow (FCF) as early as fiscal 2023.
Beyond a more ‘competitive’ cost structure, the group also says it is betting a lot on upgrading its offer in the region, through investments in ‘modular’ and ‘innovative’ product architectures. ‘.
The title took 2.2% in the afternoon on the Stockholm Stock Exchange, compared to a 0.9% increase in the index of its star stocks, the OMX C25.
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