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In , Electrolux two largest markets, Western Europe and North America,
showed solid market growth. At the same time, demand in several, for Electrolux
important, emerging markets deteriorated, most notably in Brazil. Therefore, the
fi nancial performance in our six business areas showed a mixed pattern, with strong
earnings improvement in Major Appliances EMEA and Professional Products.
Solid growth in Europe
and North America
The operating income amounted to SEK . billion and
includes costs for the not completed acquisition of
GE Appliances of SEK billion. Excluding these costs, the
Group achieved an operating margin of .%. We continued
to generate a good cash fl ow of SEK . billion. Excluding
the costs related to GE Appliances, the operating cash fl ow
was SEK . billion.
Our vision, mission and strategy
Electrolux vision is to be the best appliance company in
the world as measured by our customers, employees and
shareholders. We create customer value by developing
innovative products at an increasing pace across the globe.
In , two of the successful launches were a new family of
appliances in Australia under the Westinghouse brand and a
new washing machine, myPRO, adapted to smaller busi-
nesses. In Europe, we introduced the world’s fi rst connected
steam oven. Operational excellence begins with the right
people. As a company with global reach and scale, we can
attract dedicated employees from diverse backgrounds. For
our shareholders we create value by focusing on profi table
growth, a stable cash fl ow and an optimal capital base.
Our mission – our fi nancial goals – remains unchanged.
We aim to reach an EBIT margin of % for the Group, with an
asset turnover of times, leading to a return on net assets
in excess of %. These targets are combined with a goal
of % organic growth over a business cycle. We also target
growth in our operations through profi table acquisitions. We
will achieve our vision and mission through a strong focus
on a well-defi ned strategy based on four pillars: profi table
growth, innovation, operational excellence and people and
leadership. The strategy is described in more detail in this
report.
Mixed performance in 
Our operations in Europe showed good organic growth in
 driven by higher volumes and an improved product
mix. The work to actively manage the product portfolio
provided good results. At the same time, continued cost sav-
ings contributed to earnings. Demand for appliances grew
in all markets in Western Europe. Most markets in Eastern
Europe, outside of Russia and Ukraine, also showed positive
growth. We expect the Western European market to grow by
–% in  and the market in Eastern Europe by approxi-
mately %, although the development in Russia and Ukraine
remains uncertain.
In North America, improved price/mix and higher volumes
contributed to earnings. The transition of refrigerators and
freezers to comply with new energy requirements continued
to have a negative impact in the fi rst half of , although
profi tability was restored during the latter part of the year.
The US market remained healthy and demand for appli-
ances increased by more than %. We expect the market to
remain solid in  and forecast demand to grow by –%.
Earnings in Major Appliances Latin America were sig-
nifi cantly aff ected by the weak macro-economic environ-
ment in Brazil and demand for appliances fell sharply. To
mitigate these market conditions and currency headwinds,
we continued to increase prices and to take cost actions.
Other markets in Latin America, including Argentina, showed
positive growth. We expect the Brazilian market to remain
weak in . In Asia/Pacifi c, we took actions to exit unprof-
itable segments and categories in China. At the same time,
it is encouraging to note that Australia – our fourth largest
market – continued to generate good earnings and margins.
Professional Products demonstrated a solid, positive
trend throughout the year. Sales increased in several mar-
kets within food-service equipment and laundry solutions.
Strategic initiatives to grow in new markets and segments
have contributed to the positive trend.
ORGANIC GROWTH
2.2%
.% 
OPERATING MARGIN
3.9%
.% 
CASH FLOW, SEK BN
9.5
. SEK bn 
CAPITAL TURNOVERRATE
5.0
. 
) Excluding costs of SEK billion related to the not completed acquisition of GE Appliances.
 ELECTROLUX ANNUAL REPORT 
  