Electrolux 2000 Annual Report Download - page 31

ELECTROLUX ANNUAL REPORT 2000 29
ITEMS AFFECTING COMPARABILITY
Items affecting comparability in 2000
amounted to SEK –448m and comprised
the items listed in the table below.
Items affecting comparability in 1999
amounted to SEK –216m and included a
capital gain of SEK 1,625m on divest-
ment of operations, as well as a provision
of SEK –1,841m referring to a court
decision in pension litigation in the US.
Items affecting comparability
in 2000, SEKm
Capital gain from divestment of
professional refrigeration in Q1 241
Restructuring, Professional Indoor
Products in Q1, referring to imple-
mentation of new organization –241
Restructuring, Consumer Durables –883
Allocation of SPP pension surplus 435
Total –448
Provision in the fourth quarter
for cost adjustments
In the fourth quarter of 2000 the Group
made a provision of SEK 883m for adjust-
ments which will be implemented during
2001, see table above right.
FINANCIAL ITEMS
The economic environment in the US
and Europe was favorable for a large part
of 2000, which resulted in higher market
interest rates.The increase was about
1 percentage point in the US and about
2 percentage points in Europe. Indications
of a slowdown in the US economy
towards the close of the year resulted in
declining market interest rates, which was
also reflected in Europe.
Net financial items amounted to SEK
–1,072m (–1,062), which corresponds to
–0.9% (–0.9) of sales. Major factors
affecting the financial net in 2000 were
higher interest rates in the amount of
approximately SEK –60m and financing
of share buy-backs amounting to approxi-
mately SEK –60m, while lower average
net borrowings had a positive impact of
approximately SEK 70m.
In 1999, financial items were impacted
by non-recurring items amounting to
SEK –105m, which was a net of SEK
–240m referring to unauthorized trading
by an employee in Germany and SEK
135m from the discontinuation of the
Group’s hedging of equity in euro.
TAXES
Total taxes for 2000 amounted to SEK
2,121m (2,005), which corresponds to
32.5% (32.6) of income after financial
items.
Exclusive of items affecting compara-
bility, the actual tax rate was 32.4%
(34.5).The improvement refers mainly to
comprehensive rationalization of the
Group’s legal structure.
EFFECTS OF CHANGES IN EXCHANGE RATES
Changes in exchange rates in terms of
both transactions and translations had a
net positive effect on income after finan-
cial items in the amount of approximately
SEK 375m (330). Of this sum, SEK 190m
(70) referred to translation of income
statements in subsidiaries.
These effects are traceable largely to the
strengthening of the dollar and the British
pound.The weakening of the euro also had
a positive impact in view of the Group’s
large production base within the EU.
For key ratios in which liquidity, net
assets, inventories and accounts receivable
are given in relation to net sales, the
effects of changes in exchange rates have
been eliminated by translating net sales at
year-end rates.
For additional information on the
effects of changes in exchange rates, see
the section on Currency risk, page 34.
EARNINGS AND FINANCIAL
POSITION ACCORDING TO US GAAP
The table below summarizes the Group’s
net income and financial position accord-
ing to US accounting principles (US
GAAP). For additional information and a
description of the significant differences
between US and Swedish accounting
principles, see Note 27, page 56.
The Group also submits an annual
Form 20-F report to the SEC (Securities
and Exchange Commission).
Approximate values according to US GAAP, SEKm 2000 1999
Net income 4,864 4,053
Net income per share, SEK1) 13.55 11.05
Equity 26,110 25,213
Total assets 87,988 84,935
1) No. of shares 359,083,955 (366,169,580).
Value creation, SEKm 2000 1999 Change
Consumer Durables
Europe 986 1,224 –238
North America 1,669 1,036 633
Rest of the world –1,056 –1,398 342
Total Consumer Durables 1,599 862 737
Professional Products
Indoor 713 896 –183
Outdoor 756 663 93
Total Professional Products 1,469 1,559 –90
Common Group costs, etc. –645 –639 –6
Total 2,423 1,782 641
Restructuring actions, Approx. Approx.
Consumer Durables, SEKm amount savings, 2001
Alignment of pan-European organization,
Electrolux Home Products, Europe 350 160
Alignment of organization and logistics structure,
Electrolux Home Products, North America 200 230
Consolidation of production structure,
floor-care products 200 20
Rationalization of IT-structure, and other items 130 30