North American Head of Electrolux Quits After Poor Q1 Report

Electrolux Oven Photo credit: Dean Beeler
Electrolux Oven Photo credit: Dean Beeler

Jack Truong, Head of the North American major appliance division of Electrolux, and a vice president, resigned on Wednesday after the Swedish company released a profit warning for the unit.

According to the company, data from the first quarter of 2015 demonstrates that profits would be significantly lower than what had been predicted for their refrigeration and freezer-manufacturing business. They said that the reduced profits are due to new US energy-efficiency requirements in addition to a lagging production increase in its Memphis, Tennessee factory, where ovens are produced.

The company added that it will most likely need almost the rest of 2015 to return to its past profitability level as well as improve efficiency to profitable levels.

Electrolux’s troubles in North America started last year during the third quarter last year. Despite the company developing a plan for improvement, Electrolux has still suffered from slow growth. They are hopeful that things at the company will begin to show improvement during the second quarter of this year.

“If you look at how the company has communicated this, it is clear that they have not had full insight into the developments in North America,” said Mr. Rinta of the Swedish bank Handelsbanken.

Alison Meadows

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Alison Meadows has a PHD in Economic Trends in Modern Times and is a known writer who focuses on hedge fund investments. Meadows, her husband, and three kids live in Boston, where she grew up and attended college. Contact Alison at alison[at]businessdistrict.com