Electrolux 2011 Annual Report Download - page 89

annual report 2011 board of directors report
• Net sales for 2011 increased by 1.9% in comparable
currencies. Acquisitions had an impact on net sales
by 1.7%.
• Sales growth in Asia/Pacific, Latin America and
Small Appliances offsets lower sales in Europe
and North America.
• Operating income amounted to SEK 3,155m
(6,494), corresponding to a margin of 3.1% (6.1),
excluding items affecting comparability.
• Operating income declined mainly due to lower
sales prices and increased costs for raw materials.
• Income for the period was SEK 2,064m (3,997).
• Earnings per share amounted to SEK 7.25 (14.04).
Net sales and income
Net sales
Net sales for the Electrolux Group in 2011 amounted to
SEK 101,598m, as against SEK 106,326m in the previous year.
Changes in exchange rates had a negative impact on net sales.
The acquisitions of Olympic Group in Egypt and CTI in Chile had
a positive impact on net sales by 1.7%. Net sales were slightly
positive in comparable currencies, excluding acquisitions.
Strong sales growth in Latin America and Asia/Pacific offset lower
sales in mature markets as Europe and North America. Olympic
Group and CTI are included in Electrolux consolidated accounts for
2011 as of September and October, respectively, see page 18 and 19.
Change in net sales
%2011
Changes in Group structure 1.7
Changes in exchange rates –6.3
Changes in volume/price/mix 0.2
Total –4.4
Operating income
Operating income for 2011 decreased to SEK 3,017m (5,430), cor-
responding to 3.0% (5,1) of net sales. Weak demand in Electrolux
main markets, lower sales prices and increased costs for raw
materials had an adverse impact on operating income for 2011.
The contribution from the acquired companies Olympic Group
and CTI including related acquisition adjustments was slightly
nega tive. Expenses related to the acquisitions amounted to SEK
99m in 2011, see page 18 and 19.
Electrolux has been tangibly affected by the decline in con-
sumer confidence in the mature markets. To improve cost effi-
ciency, a number of cost-savings activities are being implemented,
see page 18. Activities to reduce staffing levels in all regions were
initiated in the fourth quarter of 2011 and will continue in 2012.
Non-recurring costs for these activities have been charged to
operating income in the amount of SEK635m, see table below. In
addition, non-recurring historical WEEE1) related costs in Hungary
for the period 2005 to 2007 amounting to SEK 190m have been
charged to operating income, see table below.
Non-recurring costs
SEKm 2011
Reduction of staffing levels in Europe 500
WEEE related costs, Europe 190
Reduction of staffing levels, North America 15
Reduction of staffing levels, Asia/ Pacific 20
Reduction of staffing levels, Small Appliances 45
Reduction of staffing levels, Group functions 55
Total 825
1) Producer responsibility related to Waste Electrical and Electronic Equipment
(WEEE).
Items affecting comparability
Operating income for 2011 includes items affecting comparability
in the amount of SEK –138m (–1,064), referring to restructuring
provisions, see table on page 18.
Excluding items affecting comparability and the non-recurring
costs described above, operating income for 2011 amounted to
SEK 3,980m (6,494), corresponding to a margin of 3.9% (6.1).
Net sales and operating margin
Net sales
Operating margin,
excluding items
affecting comparability
125,000 10
8
6
4
2
0
100,000
75,000
50,000
25,000
007 08 09 10 11
SEKm %
Earnings per share
20
15
10
5
010 11070809
Excluding
items affecting
comparability
Including
items affecting
comparability
SEK
6