Electrolux 2002 Annual Report Download - page 34

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    
Cash flow
•Operating cash flow improved by 31% to SEK 7,665m (5,834)
•Working capital was reduced to SEK 2,216m (6,659)
•Capital expenditure declined by 21% to SEK 3,335m (4,195)
For definitions, see page 65.
0
1,500
3,000
4,500
6,000
7,500
9,000
Operating cash flow,
SEKm
0201009998
SEKm
0
1,000
2,000
3,000
4,000
5,000
6,000
Capital expenditure,
SEKm
02010099989796959493
SEKm %
0
1
2
3
4
5
6
As % of net sales
Approximately 40% of total capital expenditure during the
year referred to new products. Major projects included devel-
opment of platforms and new products within the cooking,
refrigeration, dishwasher and tumble dryer product areas in
Europe.
Approximately 25% of total capital expenditure was attribut-
able to rationalization and replacement of existing production
equipment. About 5% referred to the expansion of capacity
within the appliance operation in Eastern Europe, as well as
within Consumer Outdoor Products in North America and
within Professional Outdoor Products. Investments in IT ac-
counted for approximately 5%, and investment in measures
for fire protection almost 3%.
Capital expenditure, by business area
SEKm 2002 2001 2000
Consumer Durables
Europe 1,328 1,244 1,189
% of net sales 2.8 2.6 2.8
North America 984 1,530 1,490
% of net sales 2.0 3.3 3.2
Rest of the world 406 334 198
% of net sales 2.7 2.2 2.2
Professional Products
Indoor 295 657 955
% of net sales 2.7 3.8 5.4
Outdoor 229 213 171
% of net sales 2.2 2.3 2.1
Other 93 217 420
Total 3,335 4,195 4,423
% of net sales 2.5 3.1 3.6
Capital expenditure
Capital expenditure declined by 21% to SEK 3,335m in 2002, corresponding
to 2.5% of net sales.
O  
Operating cash flow generated by business operations increased
to SEK 7,665m (5,834), after adjustment for changes in ex-
change rates. The increase is mainly due to higher income and
a decrease in working capital. The decline in working capital
refers largely to increased operating liabilities.
Cash flow was negatively impacted by the final payment of
USD 94m (approximately SEK 913m) related to the PBGC
pension litigation.
Cash flow
SEKm 2002 2001 2000
Cash flow from operations
excluding change in operating
assets and liabilities 9,100 5,848 8,639
Change in operating assets and liabilities 1,805 3,634 –2,540
Capital expenditures –3,335 –4,195 –4,423
Other 95 547 876
Operating cash flow 7,665 5,834 2,552
Net proceeds from divestment
and acquisition of operations 2,229 4,861 630
Investment in trademark ——–450
Total cash flow from operations
and investments 9,894 10,695 2,732
Operating cash flow
Operating cash flow has improved significantly over the past five years.
C 
Capital expenditure in tangible fixed assets in 2002 amounted
to SEK 3,335m (4,195), of which SEK 295m (282) refers to
Sweden. Capital expenditure corresponded to 2.5% (3.1) of
net sales.
The decline refers mainly to North America, where several
large projects, including a new generation of refrigerators and
a new line of cookers, were completed in 2001.