Electrolux 1998 Annual Report Download - page 4

Download and view the complete annual report

Please find page 4 of the 1998 Electrolux annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 72

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72

The ongoing restructuring program that was
started in June 1997 has proceeded according to
plan. By year-end 1998 the number of Group
employees had been reduced by 9,200, while 18
factories and 30 warehouses had been shut down
or divested.The program will be largely completed during the first half of 1999.
2
Electrolux Annual Report 1998
Highlights of the year
Exclusive of items affecting comparability, operating
income improved by 33% to SEK 6,064m,
corresponding to 5.2% of sales, as against 4.0% in
1997.The goal is to achieve an operating margin
of 6.5-7% by the time the restructuring program
has generated full effect.
Streamlining of the Group continued with the divestment of operations in
agricultural implements, items for interior decoration, kitchen and bathroom
cabinets, heavy-duty laundry equipment, professional cleaning equipment and
recycling. An agreement has also been reached for divestment of AB Lux, the
operation within direct sales.The divested units, including Lux, had total annual
sales of approximately SEK 7,400m and about 11,600 employees.
In the course of the year a new joint venture in
refrigerators, washing machines and compressors was
established with Voltas Ltd in India. Electrolux has thus
become the largest manufacturer of refrigerators in the
Indian market.The Group
’
s annual sales of white goods
in India will be doubled, to approximately SEK 1,500m.
The Board of Directors will propose an increased dividend for 1998 of SEK 3.00
per share at the Annual General Meeting.
Restructuring 1997-98 Target
Employees 9,200 12,000
Plants 18 25
Warehouses 30 50
Margin
7
6
5
4
3
2
1
95 96 97 98
Target 6.5-7%
Operating margin