Electrolux 2002 Annual Report Download - page 23
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B P P
16%
Share of total Group sales
SEKm
98 99 00 01 02
0
6,000
12,000
18,000
24,000
30,000
Net sales
SEKm
98 99 00 01 02
%
Operating income, SEKm
Operating margin, %
0
2
4
6
8
10
12
0
500
1,000
1,500
2,000
2,500
3,000
Operating income
and margin
SEKm
98 99 00 01 02
%
0
500
1,000
1,500
2,000
0
10
20
30
40
Value creation, SEKm
Return on net assets, %
Value creation and
return on net assets
cutbacks of approximately 730 and is expected to generate
savings of approximately SEK 45m in 2003, and approximately
SEK 60m annually as of year-end 2005.
In 2001, a charge of SEK 1,710m was taken against operating
income for restructuring of this product line. Of this amount,
approximately 80% referred to write-down of assets.As of
year-end 2002, SEK 1,668m of this charge had been utilized
and all projects had been completed.These included shutdown
of a compressor plant in the US, divestment of a Mexican
compressor plant, reduction of capacity in Italy and Spain,
and write-down of assets in joint ventures in Egypt and China.
The Group’s operation in Professional Outdoor Products
comprises mainly high-performance chainsaws, clearing saws
and turf-care equipment.The majority of these products are
sold under the Husqvarna brand.
This business area also includes power cutters, diamond tools
and related equipment for cutting of, e.g., cement and stone.
M
Husqvarna and Jonsered are among the top three worldwide
brands for professional chainsaws, with a total global market
share of about 40% in the professional segment. Following the
Outdoor Products
•Lower demand for chainsaws and diamond tools
•Good growth in income and margin overall
•Higher sales of chainsaws and garden equipment, mainly through new distribution
channels in the US
•Acquisition of Diamant Boart, a world-leader in diamond tools for the construction
and stone industries
The restructuring involved a reduction in the workforce of
about 1,150, and generated savings of SEK 291m in 2002.The
program is expected to generate savings of SEK 365m in 2003.
Divestments
During 2002, the Group divested its European motor opera-
tion and its metallurgical plant in Italy.These operations, in-
cluding the above mentioned Mexican compressor plant, had
annual sales of approximately SEK 1,730m, and were part of
the components product line.
acquisition of Diamant Boart, the Group is the world’s largest
producer of diamond tools and related equipment for the
construction and stone industries, with annual sales of approx-
imately SEK 3.5 billion.The Group is one of the world’s
largest producers of power cutters.
O
Demand for professional chainsaws declined, particularly in
North America and Western Europe. Group sales of chainsaws
increased in volume, mainly on the basis of new distribution
channels in North America.