Electrolux 2005 Annual Report Download - page 42
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Please find page 42 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.38 Electrolux Annual Report 2005
Operations within Outdoor Products comprise garden equipment
for the consumer market such as lawn mowers, tractors, trim-
mers, blowers and chainsaws, as well as a wide range of equip-
ment for professional users. The professional product range
includes high-performance chainsaws, clearing saws, wheeled
lawn and garden equipment, as well as power cutters and dia-
mond tools.
The Board proposes to the Annual General Meeting that the
Outdoor Products operations will be distributed to the Electrolux
shareholders by mid-2006. The new company, which will be
called Husqvarna, will be one of the world leaders in outdoor
products. For more information, see pages 22 and 41.
Market position
Consumer Outdoor Products Market position
Garden equipment Leading position in USA and Europe.
Professional Outdoor Products Market position
Chainsaws Husqvarna and Jonsered are among
the top three worldwide brands for
professional chainsaws, with a global
market share of about 40% in the pro-
fessional segment.
Lawn and garden Operations refer mainly to North America.
equipment Global market share of less than 10%.
Power cutters and The Group is one of the world’s largest
diamond tools producers of diamond tools and related
equipment for the construction and
stone industries.
Consumer Outdoor Products
Key data 1)
Consumer Outdoor Products
SEKm 2005 2004
Net sales 18,360 17,579
Operating income 1,372 1,607
Operating margin, % 7.5 9.1
Net assets 5,719 4,646
Return on net assets, % 19.2 27.6
Capital expenditure 777 517
Average number of employees 6,054 6,041
1) Excluding items affecting comparability.
Demand for consumer outdoor products in North America in
2005 was lower than in the previous year. Group sales in dollars
were unchanged. Operating income declined considerably for
both the full year and the fourth quarter as a result of a less favor-
able product mix, higher costs for materials and reduction of
inventories.
Demand for consumer outdoor products in Europe in 2005 is
estimated to have shown a healthy growth. The Group’s European
operation showed good sales growth. Operating income rose
strongly for the full year as a result of higher volumes, an
improved product mix and higher sales of products imported
from the Group’s US operation.
Report by the Board of Directors for 2005
Share of total Group sales 22% Net sales Operating income and margin
0504030201
SEKm
30,000
24,000
18,000
12,000
6,000
0
0504030201
Operating income, SEKm
Operating margin, %
SEKm
3,000
2,400
1,800
1,200
600
0
%
15
12
9
6
3
0
Outdoor Products
• Demand for consumer products rose in Europe but declined in North America
• Sales growth and significant improvement in operating income for Consumer Products in Europe
• Downturn in operating income for Consumer Products in North America
• Higher demand for professional products
• Improved sales and operating income for Professional Products
• Strong sales growth in chainsaws
• The Board proposes distribution of Outdoor Products operation to Electrolux shareholders
under the name Husqvarna
Consumer
products
14%
Professional
products
8%