Electrolux 1996 Annual Report Download - page 21

Outdoor Products
• Husqvarna shows continued good
growth in chainsaws
• Improved operating income for garden
equipment in North America, despite
lower demand
• Marked drop in operating income
for Flymo in the European operation
Electrolux is the world’s leading producer
of chainsaws, with a global market share of
almost 40%. The Group is also the world’s
largest producer of lawn mowers, garden
tractors and portable garden equipment
such as lawn trimmers and leaf blowers.
Operations are run through the Hus-
qvarna and Flymo subsidiaries, with pro-
duction units in Europe. The US operation
in American Yard Products and Poulan/
Weed Eater has been merged as of 1997
with the US white-goods operation in a
new company, Frigidaire Home Products.
Husqvarna serves the global market
with a complete range of outdoor products
that focus on the high end of the market,
e.g. chainsaws for professional users. Flymo
concentrates on electric-powered garden
equipment for the European market and
is the market leader in the UK.
In the US, the Group is the market leader
in garden tractors, lawn mowers, trimmers
and other portable products, as well as
in light-duty chainsaws for the hobby
segment. In 1996, the American operation
accounted for more than half of this
business area’s sales.
Operations in 1996
Demand for professional chainsaws was
largely unchanged from the previous year.
The markets in Eastern Europe and North
America showed growth, while the West-
ern European market declined. Husqvarna
achieved higher sales and strengthened
its market position. Operating income
remained at a high level.
The market for garden equipment in
the US showed lower volume in virtually
all product areas. However, the Group
achieved good sales growth as well as
higher market share for such products as
garden tractors, lawn mowers and hobby
chainsaws. The US operation reported
improved operating income.
Demand in the European market was
also lower than in 1995. Flymo reported
a marked drop in operating income as a
result of a substantial market downturn in
the UK and non-recurring costs, including
those for organizational changes in several
countries.
17
Electrolux Annual Report 1996
Key data 1996 1995 1994 1993 1992
Sales, SEKm 15,061 15,902 15,237 13,638 9,333
Operating income after depreciation, SEKm 1,295 1,436 1,540 1,317 678
Operating margin, %1) 8.6 9.0 10.1 9.7 7.3
Net assets, SEKm1) 7,367 7,474 7,460 6,945 5,376
Return on net assets, %1) 17.8 17.9 19.3 18.7 12.0
Capital expenditure, SEKm 405 504 467 351 321
Average number of employees 9,396 10,157 9,874 9,170 8,900
1) For a definition of this item, see page 48 1996 1995
Sales by product line SEKm % SEKm %
Forestry and garden equipment 14,817 98.4 15,678 98.6
Agricultural implements 244 1.6 224 1.4
Total 15,061 100.0 15,902 100.0
9692 93 94 95
9692 93 94 95
0
2,500
5,000
7,500
10,000
12,500
15,000
0
250
500
750
1,000
1,250
1,500
13.7%
Sales, SEKm
Share of total Group sales
Operating income after depreciation, SEKm
1. Flymo’s new light-weight trimmer features a wrist
support and can be operated with one-hand.
2. The Group is the world’s largest producer of chain-
saws, with a global market share of almost 40%.
3. Poulan/Weed Eater celebrated its 50th year of
operations in 1996, and by year-end had produced
more than 1 million chainsaws at its plant in
Nashville, Tennessee.
4. The Group is the main supplier of forestry and
garden equipment to Sears, the US department store
chain.
5. In 1996 Flymo launched the Micro Compact 300
Plus, a lighter hover mower with a built-in grass-
collecting system.