Electrolux 1997 Annual Report Download - page 23

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Electrolux is the world’s leading
producer of chainsaws, with a global
market share of about 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
Husqvarna and Flymo, with production
units in Europe, and Frigidaire Home
Products in the US.
Husqvarna’s global sales operations
comprise a complete range of outdoor
products focused on the high end of
the market, such as chainsaws for pro-
fessional 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 equipment, lawn
mowers, trimmers and other portable
products, and in light-duty chainsaws
for the hobby segment. In 1997 the
US operation accounted for more than
half of sales in this business area.
Operations in 1997
Demand for professional chainsaws
was higher than in the previous year.
Husqvarna continued to report strong
growth in sales volume and sustained
its market position. Operating income
improved over the high level of 1996.
Higher demand was also shown in
North America for hobby chainsaws,
lawn trimmers and blowers. The Group
achieved a strong increase in sales
on the basis of several new products.
Income improved for the North
American operation.
Demand for garden equipment in
Europe was largely unchanged. There
was some improvement in the UK
market, however, and Flymo reported
somewhat higher sales. O perating
income for the European operation in
garden equipment improved, mainly
as a result of the structural changes
made in 1996.
Total operating income and
profitability for the Outdoor Products
business area were higher than in the
previous year.
19
Electrolux Annual Report 1997
16.0%
9793 94 95 96
93 94 95 96
Net sales
0
6,000
9,000
12,000
15,000
18,000
3,000
SEKm
0
600
900
1,200
1,500
1,800
300
SEKm
0
9.0
13.5
18.0
22.5
27.0
4.5
%
Share of total Group sales
97*
Operating income, SEKm
Return on net assets, %
*Excluding costs for restructuring program
Operating income
and return on net assets
Key data 19971) 1996 1995 1994 1993
Net sales, SEKm 18,087 15,061 15,902 15,237 13,638
Operating income, SEKm 1,613 1,295 1,436 1,540 1,317
Operating margin, % 8.9 8.6 9.0 10.1 9.7
Net assets, SEKm 7,034 7,367 7,474 7,460 6,945
Return on net assets, % 21.7 17.8 17.9 19.3 18.7
Average number of employees 9,839 9,396 10,157 9,874 9,170
Capital expenditure, SEKm 637 405 504 467 351
1997 Share 1996 Share
Net sales by product line SEKm % SEKm %
Forestry and garden equipment 17,820 98.5 14,817 98.4
Agricultural implements 267 1.5 244 1.6
Total 18,087 100.0 15,061 100.0
1) Excluding costs referring to the current restructuring program.
Husqvarna has developed the world’s first hedge
trimmer with an exhaust-gas cleaner.