Electrolux 2005 Annual Report Download - page 26
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Please find page 26 of the 2005 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.Husqvarna
The new Husqvarna Group
22 Electrolux Annual Report 2005
Net sales by business area 2005
Consumer Products 64%
Professional Products 36%
The Electrolux Board of Directors pro-
poses that the Annual General Meet-
ing in April 2006 authorize the distribu-
tion of all shares in Husqvarna to the
shareholders in Electrolux. It is
intended that the Husqvarna shares
be listed on the O-list of the Stock-
holm Stock Exchange in connection
with the distribution.
Husqvarna comprises the Electrolux
Group’s operation in Outdoor Products.
World market leader
Husqvarna is the world’s largest pro-
ducer of chainsaws, lawn mowers and
other powered garden equipment such
as trimmers and leaf blowers, and is
one of the largest producers of garden
tractors. Husqvarna is also the world’s
largest producer of diamond tools for
the construction and stone industries.
The above product categories account
for approximately 90% of net sales.
The Husqvarna Group is also the
leading supplier of outdoor products
to Sears, the American retail chain,
which is the world’s largest retailer of
outdoor consumer products, under
the Craftsman brand.
Net sales in 2005 amounted to
SEK 28.8 billion. The average number
of employees was 11,681.
Husqvarna’s operations comprise
two business areas – Consumer Prod-
ucts and Professional Products. In
2005 Consumer Products accounted
for 64% of total sales. This product
range includes lawn mowers, garden
tractors, grass trimmers, leaf blowers,
hedge trimmers, snow throwers and
chainsaws.
Products for professional users
accounted for 36% of sales in 2005.
This product range primarily includes
chainsaws, clearing saws, grass trim-
mers and leaf blowers, as well as lawn
mowers, riders and other special
wheeled products for landscape main-
tenance. In addition, the range includes
power cutters, diamond tools and other
equipment for cutting such materials
as concrete and stone.
Brands
Consumer Products
• Husqvarna and Jonsered for high-
end products in the global market.
• Flymo for high-end electrically pow-
ered products in Europe.
• Partner and McCulloch for petrol-
driven products in Europe.
• Poulan Pro and Weed Eater in the US.
Professional Products
• Husqvarna, which accounts for the
largest share of sales, complemented
by Jonsered in specific markets.
• Dimas, Partner, Target and Diamant
Boart for power cutters and dia-
mond tools for the construction
and stone industries.
Strength factors
Husqvarna’s operations have shown
stable growth and high profitability for
many years. This has been achieved
on the basis of competitive advan-
tages that include:
• Leading positions in the global mar-
ket for approximately 90% of the
Group’s product categories.
• Strong position for the Husqvarna
brand for chainsaws in the high-end
segments.
• High degree of technical expertise
and substantial resources in prod-
uct development.
• Broad product range for many dif-
ferent customer segments, and a
global distribution network.
• Global sales and service organization.
• Strong positions with leading retailers.
• Efficient supply chain for consumer
products in the US.
• Complementary acquisitions that
have been quickly integrated in
operations.
Financial goals
Husqvarna’s long-term goal is to
achieve annual organic growth of
approximately 5% over the course of a
business cycle. Husqvarna also aims
at growth through complementary
acquisitions.
Husqvarna’s goals also include
achieving an operating margin of more
than 10% over the course of a business
cycle.
A prospectus regarding distribution
of shares in Husqvarna and the
stock-exchange listing will be avail-
able at the Electrolux web site prior
to the AGM. A brochure with infor-
mation on Husqvarna and the spin-
off will be sent to all shareholders.
Net sales by geographical market 2005
North America 57%
Europe 37%
Rest of the world 6%