Electrolux 2011 Annual Report Download - page 94

Major Appliances Asia/Pacific
SEKm1) 2011 2010
Net sales 7,852 7,679
Operating income excluding non-recurring costs 756 793
Operating income 736 793
Operating margin, % 9.4 10.3
Net assets 2,040 2,020
Return on net assets, % 37.5 40.6
Capital expenditure 286 198
Average number of employees 3,296 3,165
1) Excluding items a ffecting comparability.
Non-recurring costs
SEKm 2011 2010
Reduction of staffing levels 20 —
Market demand for appliances in Australia is estimated to have
increased in 2011 compared to the previous year.
Group sales declined, primarily as a result of price pressure in
the market. The strong AUD enabled producers that import prod-
ucts to reduce their prices.
Operating income declined for 2011, mainly as a consequence
of lower sales prices, increased costs for raw materials and
sourced products.
Market demand in Southeast Asia and China is estimated to
have grown in 2011 compared to the previous year. Electrolux
sales in markets in Southeast Asia and China display strong
growth and Electrolux market shares are estimated to have
grown. The operations in Southeast Asia showed a favorable profit-
ability throughout 2011.
Measures to reduce overheads amounting to SEK 20m had a
negative impact on operating income for the whole region.
Small Appliances
SEKm1) 2011 2010
Net sales 8,359 8,422
Operating income excluding non-recurring costs 588 802
Operating income 543 802
Operating margin, % 6.5 9.5
Net assets 2,210 1,723
Return on net assets, % 31.1 48.3
Capital expenditure 118 116
Average number of employees 2,572 2,625
1) Excluding items a ffecting comparability.
Non-recurring costs
SEKm 2011 2010
Reduction of staffing levels 45 —
Market demand for vacuum cleaners in Europe and North Amer-
ica declined in 2011, compared with the previous year.
Group sales increased in comparable currencies compared to
the previous year, primarily as a result of higher sales volumes
and an improved product mix. The acquisition of CTI’s subsid-
iary Somela, a small appliances manufacturer in Chile, made a
positive contribution to sales.
Operating income decreased, primarily due to higher costs for
sourced products and lower sales prices. An improved product
mix and sales growth for small domestic appliances though had
a positive impact on operating income.
Measures to reduce overheads amounting to SEK 45m were
charged to operating income in 2011.
Professional Products
SEKm1) 2011 2010
Net sales 5,882 6,389
Operating income 841 743
Operating margin, % 14.3 11.6
Net assets 932 874
Return on net assets, % 91.8 82.8
Capital expenditure 287 96
Average number of employees 2,581 2,671
1) Excluding items affecting comparability.
Market demand in Europe for food-service equipment is esti-
mated to have declined in 2011 compared to the previous year.
Operating income for food-service equipment deteriorated due
to lower sales volumes primarily in Southern Europe, where
Electrolux commands a strong position, and increased raw-material
costs. Price increases largely offset the higher costs for raw materials.
Market demand for professional laundry equipment is esti-
mated to have declined somewhat in the Group’s major markets
in Western Europe and sales volumes declined. Replacement
products are accounting for a large share of the current demand
in the market at the same time as demand for spare parts is rising.
Operating income for professional laundry equipment improved
however, compared to 2010, as a result of price increases and
higher sales volumes, which offset the rising costs of raw materials.
Major Appliances Asia/Pacific Small Appliances Professional Products
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