Electrolux 2011 Annual Report Download - page 93

annual report 2011 board of directors report
Net sales
Operating margin
07 0908 1110
40,000
30,000
20,000
10,000
0
SEKm
8
6
4
2
0
%
10
8
0
07 0908 1110
20,000
16,000
12,000
8,000
4,000
0
SEKm
Net sales
Operating margin
6
4
2
%
Major Appliances North America
SEKm1) 2011 2010
Net sales 27,665 30,969
Operating income excluding non-recurring costs 265 1,442
Operating income 250 1,442
Operating margin, % 0.9 4.7
Net assets 5,316 7,012
Return on net assets, % 4.8 21.8
Capital expenditure 700 692
Average number of employees 11,174 11,727
1) Excluding items affecting comparability.
Non-recurring costs
SEKm 2011 2010
Reduction of staffing levels 15 —
Market demand in North America for core appliances declined by
4% during the year. Major appliances, including room air-condi-
tioners and microwave ovens, declined by 1%. Room air-condi-
tioners showed strong growth during the year, rising by almost
20%.
Group sales in North America decreased compared to the
year-earlier period due to lower sales volumes.
Operating income declined mainly due to lower sales volumes,
reduced capacity utilization in production. In addition, increased
costs for raw materials, sourced products and transportation had
a negative impact on operating income.
Measures to reduce overheads amounting to SEK 15m were
charged to operating income for 2011.
Major Appliances Latin America
SEKm1) 2011 2010
Net sales 17,810 16,260
Operating income 820 951
Operating margin, % 4.6 5.8
Net assets 7,468 3,146
Return on net assets, % 21.2 30.4
Capital expenditure 526 650
Average number of employees 11,537 11,246
1) Excluding items affecting comparability.
Market demand for appliances in Brazil is estimated to have
increased in 2011 compared to the previous year. Several other
Latin American markets showed favorable growth during the year.
The Group’s sales rose as a result of higher sales volumes and
Electrolux continued to capture market shares in Brazil and in
other Latin American markets, the latter of which accounted for
about 22% of consolidated sales in Latin America during 2011.
Sales have been positively impacted by the acquisition of the Chil-
ean appliances manufacturer CTI.
Operating income declined compared to the previous year on
the basis of a weaker customer mix and increased costs for raw
materials. The consolidation that has taken place among several
retailers in the Brazilian market had an adverse impact on the cus-
tomer mix compared to 2010, although to a lesser extent during
the latter part of 2011.
The contribution from the acquisition of CTI, including related
acquisition adjustments, was positive. Read more about the
acquisition of CTI on page 18 and in Note 26.
Major Appliances Latin America Major Appliances North America
Net sales and operating income 2011 compared to 20101)
Change, year-over-year, % Net sales
Net sales in
comparable
currencies
Operating
income
Operating
income in
comparable
currencies
Major Appliances:
Europe, Middle East and Africa –7.0 –2.2 –69.1 –67.2
North America –10.7 –1.3 –82.7 –81.1
Latin America 9.5 16.5 –13.8 –8.1
Asia/Pacific 2.3 3.2 –7.2 –7.9
Small Appliances –0.7 6.0 –32.3 –29.5
Professional Products –7.9 –3.7 13.2 18.5
Total change –4.4 1.9 –51.4 –48.9
1) Excluding items affecting comparability.
10