Electrolux 2015 Annual Report Download - page 78

 in summary
• Organic growth of .%, as a result of mix improvements and higher prices.
• Strong performance for Major Appliances EMEA and Professional Products.
• Weak markets, particularly in emerging markets, impacted operating income.
• Severe currency headwinds were to a large extent mitigated by price increases.
• Operating income includes costs of SEK ,m related to the not completed acquisition
of GE Appliances, excluding these costs the margin was .% (.).
Market overview
Market demand for core appliances in Western Europe
increased by % in . Most markets in Eastern Europe
also increased but the overall demand was impacted by
continued decline in Russia. Demand in Eastern Europe
declined by %. In total, the European market increased
by % excluding Russia. Market demand for core appli-
ances in North America increased by %. Market demand
for core appliances in Australia increased, while demand
in China and Southeast Asia declined. Demand for appli-
ances in Brazil continued to deteriorate and most other
Latin American markets also declined.
Net sales and operating income
Electrolux sales increased by .% of which .% was
organic growth, .% acquisitions and .% currency
translation. The organic growth was mainly a result of mix
improvements and price increases. Weak market trends in
several emerging markets impacted sales in .
Operating income amounted to SEK ,m (,)
corresponding to a margin of .% (.). As announced on
December , , Electrolux planned acquisition of GE
Appliances will not be completed as General Electric has
terminated the agreement, see page . Operating income
includes costs of SEK ,m related to the not completed
acquisition of GE Appliances, excluding these costs the
margin was .% (.).
Operating income for Major Appliances EMEA continued
to improve in . Product-mix improvements, increased
sales volumes and increased efficiency contributed to the
positive earnings trend. Earnings for Major Appliances
North America were impacted by cost increases related to
the transition of refrigerators and freezers to comply with
new energy requirements and the ramp up of the new cook-
ing plant in Memphis, Tennessee. Earnings improved in the
latter part of the year and profitability for food-preservation
products was restored. Operations in Latin America were
impacted by a sharp decline of market demand. Severe
currency headwinds in several markets were to a large
extent mitigated by price increases. Reduced activities
and inventory write-down in China impacted earnings in
Major Appliances Asia/Pacific. Operating income for Small
Appliances declined and restructuring measures to restore
profitability were initiated and SEK m were charged to
operating income. Professional Products showed a good
development during the year.
Market demand for core appliances in Europe
Million units






15141312111009080706050403020100
A total of approximately
 million core
appliances were sold
in Europe in ,
which is about %
lower than the record
year of .
Market demand for core appliances in the US
Million units






15141312111009080706050403020100
A total of approximately
 million core
appliances were sold
in the US in , corre-
sponding to the level of
 and about % lower
than the top levels in 
and .
Sources: Europe: Electrolux estimates, US: AHAM. For other markets there
are no comprehensive market statistics.
Financial goals over a business cycle
Sales growth Operating margin
SEKm %
Net sales
Organic sales growth
Goal, %

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1514131211
-
-




SEKm %
Operating income
Operating margin
Goal, %


,
,
,
,
1514131211
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
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