Electrolux 2000 Annual Report Download - page 10

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We continued to achieve good growth in sales and income in all product
areas in North America, where we enlarged our market shares. I am also glad
to report that Consumer Durables outside Europe and North America achieved
positive operating income, after a considerable loss in the previous year.
The performance of white goods in Europe was a disappointment, however,
with lower income and margin despite good volume growth. This resulted partly
from increased pressure on prices and higher costs for materials, mainly during
the second half, and also from a less favorable mix in terms of products, coun-
tries and customers. The costs of establishing a new pan-European organization
also had an unfavorable effect.
The downturn in operating income for Professional Indoor Products
was primarily a result of divestments, and lower volumes for laundry equipment
resulting mainly from production delays related to the launch of a new product
range. A substantial downturn in income for compressors in China and Egypt
during the second half of the year also had an adverse effect.
Professional Outdoor Products achieved continued high growth
in sales as well as income, and also reported a somewhat better margin.
Contributing factors included the strong dollar and a large volume of exports
of chainsaws from Sweden to North America.
Both Consumer Durables in Europe and Professional Indoor Products
reported lower value creation in the second half of the year than in 1999.
… higher income for Consumer Durables
and Professional Outdoor.
Value creation by business
area, 1998 –2000
–500
0
500
1,000
1,500
2,000
SEKm
Consumer Durables
Professional
Indoor Products
Professional
Outdoor Products
1998 1999 2000
8REPORT BY THE PRESIDENT AND CEO
Consumer Durables generated the largest
increase in value creation for the period
1998–2000, which mainly refers to North
America and Rest of the world.