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WHITE CONSOLIDATED/ELECTROLUX 'F-1' CP RATING AFFIRMED BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Oct. 7 /PRNewswire/ -- White Consolidated Industries, Inc.'s `F-1' commercial paper rating is affirmed by Fitch. AB Electrolux, White's parent company, unconditionally guarantees due and punctual payment of the commercial paper notes. White may issue up to $300 million of commercial paper, primarily to finance its seasonal working capital needs. Outstandings are fully supported by unused bank facilities, and approximately $150 million was recently outstanding.
 The affirmation accounts for Electrolux Group's strong global market shares, product, and market diversification, fixed asset quality, and sound liquidity. These strengths mitigate concerns arising from the cyclicality the major appliance (white goods) business, currently weak earnings, and comparatively high debt leverage.
 Electrolux has completed restructuring its acquired companies, giving it flexible manufacturing, lower costs, and scale economies. With lower and more manageable capital expenditures, the group is now, and should continue to be, essentially cash flow break-even. Going forward, management will concentrate on growing unit volume, strengthening brand equity, and managing working capital more intensively.
 While the group's competitive position and liquidity remain sound, tough market conditions in North America and Europe, keen white goods price competition, and new facility start-up costs have depressed earnings. However, the group has maintained its market shares, and is poised to show gradual improvement in volume, earnings, and cash flow.
 Electrolux's consolidated financial leverage is high, with total debt-to-capital in the 60 percent range. This reflects borrowings related to past acquisitions, white goods financing, and some interest arbitrage. However, liquid assets and receivables together consistently exceed short-term debt and trade payables. With improved working capital management, improving cash flow, and level capital expenditures, debt leverage is likely to ease gradually. The group also has strong bank relationships and support from strong core shareholders.
 White, a wholly owned subsidiary of AB Electrolux since 1986, is the holding company for the group's operations in North America. AB Electrolux, the group's parent company, is one of Sweden's largest industrial enterprises. Electrolux is among the world's leading white goods producers, and nearly 75 percent of its sales are in products where it is the largest or second-largest global factor.
 -0- 10/7/93
 /CONTACT: Mary Anne Sudol of Fitch, 212-908-0562/


CO: White Consolidated Industries, Inc.; AB Electrolux ST: IN: SU: RTG

CK -- NY042 -- 9736 10/07/93 11:40 EDT
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Publication:PR Newswire
Date:Oct 7, 1993
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