Electrolux 2013 Annual Report Download - page 90

Download and view the complete annual report

Please find page 90 of the 2013 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.

Page out of 172

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172

Major Appliances Latin America
Market demand for core appliances in Latin America is esti-
mated to have increased in 2013 year-over-year, while demand
in Electrolux largest market Brazil declined. The market demand
in 2012 in Brazil was partly driven by the government’s incentive
program for appliances.
The organic sales growth in Latin America was mainly driven
by price increases and an improved customer mix. The fire in
September 2013 at Electrolux warehouse for refrigerators and
freezers in Curitiba, Brazil, impacted sales volumes negatively in
the latter part of the year.
Operating income declined. During the year, the Brazilian real
and other Latin American currencies weakened versus the US
dollar. Negative currency movements affected the overall profit
significantly. Higher prices contributed to earnings, while higher
costs for sourced products had a negative impact.
Major Appliances Asia/Pacific
Market demand for major appliances in Southeast Asia, and
China continued to show strong growth in 2013. Market
demand in Australia also increased.
Electrolux organic sales growth was strong due to higher vol-
umes and price increases. Sales volumes increased in all
regions.
Operating income declined. Negative currency development
impacted results as the US dollar strengthened against the Aus-
tralian dollar and several other currencies in emerging markets.
In 2013, Electrolux launched a new range of products for the
Chinese market. The launch was the Group’s largest in 2013
and it will continue in 2014. More than 60 new products for
kitchen and laundry were introduced in the important growth
market China. The cost for these launch activities had an
adverse impact on earnings.
In addition, start-up costs for the new factory for refrigerators
and freezers in Rayong in Thailand impacted operating income
negatively, while higher sales volumes and increased prices
contributed to operating income.
Net sales and operating margin
Net sales and operating margin
SEKm %
Net sales
Operating margin
0
5,000
10,000
15,000
20,000
25,000
1312111009
0.0
1.5
3.0
4.5
6.0
7.5
SEKm %
Net sales
Operating margin
0
2,000
4,000
6,000
8,000
10,000
1312111009
0
3
6
9
12
15
Key figures
SEKm 2012 2013
Net sales 22,044 20,695
Organic growth, % 20.6 6.1
Operating income 1,590 979
Operating margin, % 7.2 4.7
Net assets 6,736 6,554
Return on net assets, % 22.1 13.8
Capital expenditure 488 742
Average number of employees 13,812 14,239
Key figures
SEKm 2012 2013
Net sales 8,405 8,653
Organic growth, % 2.9 10.8
Operating income 746 467
Operating margin, % 8.9 5.4
Net assets 2,225 2,014
Return on net assets, % 33.3 21.0
Capital expenditure 411 267
Average number of employees 3,313 3,719
board of directors’ report
88 ANNUAL REPORT 2013