UPDATE 1-Electrolux sets new savings plan, shares fall

STOCKHOLM, Nov 12 (Reuters) - Electrolux, the world's second largest home appliance maker, said on Friday it expected to make more cost cuts in the next few years and target a growth rate of 4 percent a year. The comments failed to impress some investors and the company's shares fell in opening trade. The statement was released as part of a capital markets day investor presentation. "The initiatives are expected to generate annual cost savings of approximately 2.0-2.5 billion Swedish crowns ($297-$371 million), with full effect as of 2015, and will contribute to maintaining the competitiveness of Electrolux," the white goods maker said in a statement. "Costs for the global initiatives are estimated at approximately 500 million crowns per year for 2011 and 2012." Electrolux shares fell 3 percent in opening trade. By 0830 GMT, they were 2 percent lower while the benchmark OMXS30 index was down 1.2 percent. Electrolux in 2004 launched a restructuring programme which resulted in factory closures and job losses. The aim was by the end of the programme in 2011 to have more than half of its production in low cost countries, with savings of about 3 billion crowns a year. Electrolux and bigger rival and world leader Whirlpool both reported third quarter results last month which beat market expectations, but warned of weak demand in top markets like the United States. Austerity measures in several important European Union nations are also expected to dampen demand, leaving the consumer goods giant relying on emerging markets for growth. Electrolux said in its capital markets day statement that it would also focus on cost efficiency and objectives for achieving a growth rate of more than 4 percent per year. ($1=6.733 Swedish crown) (Editing by Hans Peters) Keywords: ELECTROLUX/ (Stockholm newsroom, [e-mail], [e-mail], [phone]) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved.

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