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Electrolux sees steel tariffs sucking profit
https://www.businesslive.co.za/bd/companies/retail-and-consumer/2018-07-19-electrolux-sees-steel-tariffs-sucking-profit/Stockholm — Home appliance maker Electrolux cut its full-year forecast for sales growth in North America, its biggest market, after higher US steel tariffs forced it to increase prices for its products.
The Swedish company said on Wednesday it expected demand in North America to grow by 0% to 2% in 2018, lagging its previous forecast of 2%-3% growth, while it also lowered its outlook for the smaller Latin American and Australian markets.
CEO Jonas Samuelson said Electrolux had raised prices in North America by 2% after US tariffs inflated prices of locally sourced steel and that it would lift prices further to offset any additional inflation due to the trade conflict.
"Steel tariffs and fuel cost inflation are affecting the market as a whole and we are passing that through as an industry, and ourselves, as a price increase, and that has a negative effect on demand," Samuelson said. "Everything is interrelated."
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