Electrolux 2013 Annual Report Download - page 91

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Small Appliances
Market demand for vacuum cleaners in Europe declined some-
what in 2013, while demand in North America increased com-
pared with the previous year.
The organic sales growth was due to an improved product
mix, higher volumes and higher prices. Sales volumes of small
domestic appliances and handheld vacuum cleaners were
strong and increased in most regions, particularly in Asia/Pacific
and Europe. The significance of sales related to small domestic
appliances is increasing.
Operating income for 2013 declined compared to the previous
year. Increased costs for sourced products in Europe and Bra-
zil, related to the strengthening of the US dollar against local
currencies impacted earnings negatively. 2013 was an intensive
launch year, with new products introduced in several markets.
This improved the product mix. Mix improvements and higher
prices made a positive contribution to results.
Professional Products
In 2013, market demand in Southern and Northern Europe,
where Electrolux holds a strong position, remained weak and
declined year-over-year, while demand in emerging markets
and in the US increased somewhat.
The organic sales growth was due to an improved product
mix. This is a result of the Group’s strategic initiatives to grow in
new markets and segments. Sales were particularly strong in
emerging markets and in the US.
Operating income declined compared to last year. This is
mainly a result of a weaker performance in the first half of the
year, with lower sales volumes following a soft market. Invest-
ments in new products to promote growth in new markets and
channels also impacted results negatively in 2013, while price
increases and mix improvements made a positive contribution.
The market introduction of the ultra-luxury product range,
Electrolux Grand Cuisine, continued throughout the year.
Net sales and operating margin
Net sales and operating margin
SEKm %
Net sales
Operating margin
0
2,000
4,000
6,000
8,000
10,000
1312111009
0
3
6
9
12
15
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 9,011 8,952
Organic growth, % 6.0 4.4
Operating income 461 391
Operating margin, % 5.1 4.4
Net assets 1,555 1,554
Return on net assets, % 23.9 22.1
Capital expenditure 196 225
Average number of employees 2,737 2,683
Key figures
SEKm 2012 2013
Net sales 5,571 5,550
Organic growth, % –3.9 1.7
Operating income 588 510
Operating margin, % 10.6 9.2
Net assets 983 960
Return on net assets, % 61.7 54.1
Capital expenditure 161 76
Average number of employees 2,581 2,595
89ANNUAL REPORT 2013