Sep 10, 2019   SOURCE: PR NewsWire

Breakdown of Non-recurring Items Expected in Electrolux Q3 Results

STOCKHOLM, Sept. 10, 2019 /PRNewswire/ -- Electrolux today decided on efficiency measures which will lead to restructuring charges of SEK 1.6 billion (announced separately). In addition to these charges, the third quarter results will be impacted by developments in two administrative cases:

    --  As communicated in the interim report for Q4 2018, Electrolux during the
        quarter received a final and non-appealable court decision in Brazil
        that Electrolux has the right to recover overpaid tax for 2002-2014. In
        the quarter, Electrolux filed a claim with the Brazilian tax authority
        for the recovery of the overpaid tax. The full amount will now be
        recognized as an asset as per September 30, 2019. This will lead to a
        positive non-recurring item of approximately SEK 1.4 billion (BRL 581
        million) impacting the operating income of the business area Latin
        America.
    --  Electrolux will also report a negative non-recurring item of
        approximately SEK 200 million, impacting the operating income of the
        business area North America. These are costs related to a legal
        settlement in the United States.

This means that the net total of non-recurring items will negatively impact operating income with approximately SEK 400 million. The net impact on cash flow will be neutral. The report for the third quarter will be published on October 25, 2019.

Breakdown and net impact of charges:


                Cause of non-
                 recurring item              Impact on operating income            Area impacted


     Efficiency                                                         Group Common Cost and all
      measures and                                                       business areas
      outsourcing
      project                   
     SEK -1.6 billion


     Tax claim                  
     SEK +1.4 billion                      Business Area Latin
                                                                         America


     Legal                      
     SEK -200 million                      Business Area North
      settlement                                                         America


                Net total of
                 non-recurring
                 items          
     SEK -400 million

For further information, please contact:

Sophie Arnius, Head of Investor Relations, +46-70-590-80-72

Daniel Frykholm, Electrolux Press Hotline, +46-8-657-65-07

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/electrolux/r/breakdown-of-non-recurring-items-expected-in-electrolux-q3-results,c2899660

The following files are available for download:



     
     https://mb.cision.com/Main/1853/2899660/1103223.pdf 
     Release

View original content:http://www.prnewswire.com/news-releases/breakdown-of-non-recurring-items-expected-in-electrolux-q3-results-300914883.html

SOURCE Electrolux