Electrolux — Interim / Quarterly Report 2010

Oct 27, 2010

Interim report January - September 2010

Stockholm, October 27, 2010

Highlights of the third quarter of 2010

• • Net sales amounted to SEK 26,326m (27,617) and income for the period was SEK 1,381m (1,631), or SEK 4.85 (5.74) per share.
• • Net sales decreased by 2.3% in comparable currencies.
• • Strong growth in Latin America and Asia/Pacific partly offset lower sales volumes in Europe and North America.
• • Operating income amounted to SEK 1,977m (2,234), corresponding to a margin of 7.5% (8.1), excluding items affecting comparability.
• • Operating margin for the first nine months reached 6.1%, excluding items affecting comparability.
• • Product mix improvements continued to have a positive effect on income.
• • Strong performance for the operations in Europe, Asia/Pacific and for Professional Products.
• • Operating income in North America declined, following a weak US market, higher costs for raw materials and increased price promotion.

	Contents
Net sales and income	2
Market overview	3
Business areas	3
Cash flow	6
Financial position	6
Structural changes	7
Financial statements	10

			Change	Nine months	Nine months	Change
SEKm	Q3 2010	Q3 2009	%	2010	2009	%
Net sales	26,326	27,617	-5	78,770	80,917	-3
Operating income	1,977	2,290	-14	4,478	2,956	51
Margin, %	7.5	8.3		5.7	3.7
Income after financial items	1,901	2,244	-15	4,381	2,683	63
Income for the period	1,381	1,631	-15	3,320	1,943	71
Earnings per share, SEK1)	4.85	5.74		11.66	6.84
Return on net assets, %	-	-		30.5	19.9
Excluding items affecting comparability
Items affecting comparability	-	56		-302	-343
Operating income	1,977	2,234	-12	4,780	3,299	45
Margin, %	7.5	8.1		6.1	4.1
Income after financial items	1,901	2,188	-13	4,683	3,026	55
Income for the period	1,381	1,575	-12	3,535	2,268	56
Earnings per share, SEK1)	4.85	5.55		12.42	7.99
Return on net assets, %	-	-		30.4	21.3

1) Basic, based on an average of 284.7 (284.2) million shares for the third quarter and 284.6 (283.9) million shares for the first nine months of 2010, excluding shares held by Electrolux.

For earnings per share after dilution, see page 10.

For definitions, see page 19.

For further information, please contact Peter Nyquist, Head of Investor Relations and Financial Information, at +46 8 738 60 03.

AB ELECTROLUX (PUBL) Postal address Media hotline Investor Relations E-mail SE-105 45 Stockholm, Sweden +46 8 657 65 07 +46 8 738 60 03 ir@electrolux.se Visiting address Telefax Website Reg. No. S:t Göransgatan 143 +46 8 738 74 61 www.electrolux.com 556009-4178

Net sales and income

Third quarter of 2010

Net sales for the Electrolux Group in the third quarter of 2010 decreased to SEK 26,326m (27,617). Strong sales growth in Asia/ Pacific and Latin America partly offset lower sales volumes in Europe and North America. Changes in exchange rates had a negative impact on net sales. Net sales decreased by 2.3% in comparable currencies.

Change in net sales %	Q3 2010	Nine months 2010
Changes in exchange rates	-2.4	-4.2
Changes in volume/price/mix	-2.3	1.5
Total	-4.7	-2.7

Operating income

Operating income for the third quarter of 2010 decreased to SEK 1,977m (2,290) and income after financial items to SEK 1,901m (2,244). Increased costs for raw materials and higher brand spend had a negative impact on operating income in the quarter, while improvements in mix and non-recurring items of SEK 150m had a positive impact. Income for the period amounted to SEK 1,381m (1,631), corresponding to SEK 4.86 (5.74) in earnings per share.

Items affecting comparability

Operating income for the third quarter of 2010 includes no items affecting comparability. Operating income for the third quarter of 2009 included items affecting comparability in the amount of SEK 56m, see table on page 10. Excluding items affecting comparability, operating income, amounted to SEK 1,977m (2,234).

Effects of changes in exchange rates

Share of sales by business area,

Changes in exchange rates compared to the previous year, including translation, transaction effects and hedging contracts, had a positive impact of approximately SEK 85m on operating income for the third quarter of 2010, compared to the same period in the previous year. Transaction effects amounted to approximately SEK 150m. Translation of income statements in subsidiaries had an impact of approximately SEK -50m. In addition, results from hedging contracts had an impact of approximately SEK -15m on operating income, compared to the previous year.

Financial net

Net financial items for the third quarter of 2010 increased to SEK -76m, compared to SEK -46m for the corresponding period in the previous year. The increase is mainly due to changes in exchange rates. However, lower interest rates on borrowings continued to have a positive impact on financial items.

First nine months of 2010

Net sales for the Electrolux Group in the first nine months of 2010 amounted to SEK 78,770m, as against SEK 80,917m in the previous year. In comparable currencies, net sales increased by 1.5%, mainly on the basis of higher sales volumes.

Operating income

Operating income for the first nine months of 2010 increased to SEK 4,478m (2,956). All operations showed improvements. Improvements in mix, cost-savings and changes in exchange rates had a positive impact on income compared to the same period in the previous year. Income after financial items increased to SEK 4,381m (2,683). Income for the period increased to SEK 3,320m (1,943), corresponding to SEK 11.67 (6.84) in earnings per share.

Operating income for the first nine months of 2009 was negatively impacted by the launch of the Electrolux brand in North America in the net amount of SEK -200m.

Items affecting comparability

Operating income for the first nine months of 2010 includes items affecting comparability in the amount of SEK -302m (-343), see table on page 10. Excluding items affecting comparability, operating income for the first nine months of 2010 increased to SEK 4,780m (3,299) and income after financial items to SEK 4,683m (3,026). Income for the period was SEK 3,535m (2,268), corresponding to SEK 12.42 (7.99) in earnings per share.

Effects of changes in exchange rates

Changes in exchange rates compared to the previous year, including both translation, transaction effects and hedging contracts, had a positive impact of approximately SEK 645m on operating income for the first nine months of 2010. The effects of changes in exchange rates referred mainly to the operations in Europe, Asia/ Pacific and Latin America. The weakening of the euro against several other currencies and the strengthening of the Australian dollar and the Brazilian real against the US dollar positively affected operating income.

The transaction effects amounted to approximately SEK 645m and the translation of income statements in subsidiaries to approximately SEK -130m. In addition, results from hedging contracts had a positive effect of approximately SEK 130m on operating income.

Financial net

Net financial items for the first nine months of 2010 decreased to SEK -97m, compared to SEK -273m for the corresponding period in the previous year. The improvement is mainly due to lower interest rates on borrowings and lower net borrowings.

Market overview

Demand in the North American market declined in the third quarter of 2010, while Electrolux other main markets continued to show signs of recovery. After three consecutive quarters of increase, the North American market for appliances declined. The US statesponsored rebate programs for energy-efficient products during the second quarter caused consumers to advance the replacement of appliances, which led to a downturn in demand in the third quarter. Industry shipments of core appliances in the US have declined by approximately 2% in the third quarter.

The overall European market improved somewhat during the quarter, with important markets, such as Germany, France, Sweden and Italy showing positive trends. Demand in Eastern Europe increased, following good growth in Russia.

The market in Brazil was unchanged in comparison with the same period last year. After several quarters of strong growth, demand has stagnated in the last two quarters, following the discontinuation of tax credits for domestically-produced appliances. However, most other markets in Latin America improved.

Business areas

Changes in net sales and operating income by business area in comparable currencies are given on page 14.

Consumer Durables Europe, Middle East and Africa

SEKm	Q3 2010	Q3 2009	Nine months 2010	Nine months 2009	Full year 2009
Net sales	10,210	11,322	29,278	32,342	44,073
Operating income	1,014	1,014	2,138	1,474	2,349
Operating margin, %	9.9	9.0	7.3	4.6	5.3

Industry shipments of core appliances in Europe

Units, year-over-year, %	Q3 2010	Nine months 2010
Western Europe	0	1
Eastern Europe (excluding Turkey)	5	1
Total Europe	1	1

Core appliances

Market demand for appliances in Europe continued to stabilize in the third quarter and increased somewhat, although from a very low level in the same period last year. This was the third quarter in a row that the market showed an improvement after ten consecutive quarters of decline. Demand in Western Europe was unchanged, while Eastern Europe showed an increase, primarily due to continued strong growth in Russia. In total, market demand increased,

Consumer Durables Europe, Middle East and Africa Industry shipments of core appliances in Europe*

although from a very low level, in major Electrolux markets such as Germany, France, Sweden and Italy.

Group sales continued to decline in the third quarter as a result of lower volumes. The lower sales volumes are mostly due to the fact that Quelle of Germany, one of the Group's major retailers, went into bankruptcy at the end of 2009. At the same time, sales volumes under the Electrolux brand showed a positive development. The position within the built-in segment has continued to strengthen. Price pressure on certain markets has continued in the quarter.

Operating income improved in the third quarter, compared to the same quarter last year, mainly on the basis of a positive mix development. Increased sales of built-in products, primarily in the German market, and a higher proportion of sales in the central regions of Europe have contributed to an improved product mix.

In addition, non-recurring items of about SEK 150m related to the reversal of provisions for warranties and other quality measures had a positive effect on income in the quarter. This is a result of the ongoing work to improve product quality. Previous personnel cutbacks and cost-reduction measures continued to impact operating income positively, while increased investments in marketing and brand had a negative impact.

During the third quarter of 2010, the launch of a new series of built-in products was introduced in the market. The launch began in the German market and will continue in several markets in Europe in the coming quarters, which means that marketing investments will increase.

Floor-care products

Market demand for vacuum cleaners in Europe increased somewhat in the third quarter of 2010 compared to the same period last year. Group sales increased in comparable currencies.

Operating income improved, primarily as a result of increased sales of products within the premium segment. In addition, changes in exchange rates have impacted income positively.

* Units, year-over-year, %.

Consumer Durables North America

SEKm	Q3 2010	Q3 2009	Nine months 2010	Nine months 2009	Full year 2009
Net sales	8,353	8,869	26,375	27,861	35,726
Operating income	439	705	1,257	1,026	1,476
Operating margin, %	5.3	7.9	4.8	3.7	4.1

Industry shipments of core appliances in the US

Units, year-over-year, %	Q3 2010	Nine months 2010
Core appliances	-2	6
Major appliances	1	4

Core appliances

Market demand for appliances in North America declined in the third quarter, compared to the same quarter of last year. After three quarters of improvement, the North American market weakened. The discontinued US state rebate programs for energy-efficient products caused consumers to advance the replacement of appliances to the second quarter of 2010, which led to a downturn in demand in the third quarter. Demand is estimated to have declined by 2%.

Group sales declined in comparable currencies in the third quarter, compared to the same period last year. Since year-end 2009, Electrolux has terminated several contracts for production under private labels, which have had a positive impact on product mix.

Operating income declined, primarily as a result of considerably higher costs for raw materials, lower volumes and increased price promotion. Price pressure in the market, primarily for washing machines, increased further in the quarter. In addition, intensified marketing activities for the launch of new products under the Frigidaire brand had an adverse effect on operating income.

Floor-care products

Market demand for floor-care products continued to be weak in the third quarter and is estimated to have declined compared to the same quarter last year. Group sales increased as a result of higher sales volumes. Operating income decreased, however, on the account of a poorer product mix following promotion sales of products within the low-price segment as well as increased price pressure in the market.

Consumer Durables Latin America

SEKm	Q3 2010	Q3 2009	Nine months 2010	Nine months 2009	Full year 2009
Net sales	4,069	3,813	11,972	9,764	14,165
Operating income	231	318	688	510	878
Operating margin, %	5.7	8.3	5.7	5.2	6.2

Market demand for core appliances in Brazil is estimated to have remained unchanged in the third quarter of 2010 in comparison with the same quarter last year. Demand in the last two quarters stagnated after several quarters of considerable growth. This is primarily due to the discontinuation of tax incentives on domesticallyproduced appliances.

Electrolux sales volumes in Latin America increased in the third quarter. Sales volumes and market shares in Brazil were unchanged. Demand in most other markets in Latin America continued to show growth and Electrolux continued to gain market shares. These markets accounted for more than 20% of Group sales in Latin America in the third quarter.

Operating income for the operations in Latin America was lower in the third quarter in comparision with the same period of last year. The decline is due primarily to higher costs for raw materials as well as poorer customer mix and increased price pressure, a result of the consolidation occurring among several retailers in the Brazilian market.

Consumer Durables North America

Industry shipments of core appliances in the US*

* Units, year-over-year, %.

Consumer Durables Asia/Pacific

SEKm	Q3 2010	Q3 2009	Nine months 2010	Nine months 2009	Full year 2009
Net sales	2,192	1,982	6,402	5,738	8,033
Operating income	265	164	656	250	458
Operating margin, %	12.1	8.3	10.2	4.4	5.7

Professional Products

SEKm	Q3 2010	Q3 2009	Nine months 2010	Nine months 2009	Full year 2009
Net sales	1,501	1,629	4,732	5,206	7,129
Operating income	202	173	500	443	668
Operating margin, %	13.5	10.6	10.6	8.5	9.4

Australia and New Zealand

Market demand for core appliances in Australia was unchanged in the third quarter, compared to a low level in the corresponding quarter of last year.

Operating income was supported by an improved product mix, changes in exchange rates and higher cost efficiency. However, costs for raw materials increased.

Southeast Asia and China

Market demand in Southeast Asia and China is estimated to have continued to show a considerable increase in the third quarter, 2010, compared to the corresponding period of last year.

Electrolux sales in the markets in Southeast Asia and China showed strong growth and the Group continued to gain market shares. The operations in Southeast Asia showed continued good profitability.

Market demand for food-service equipment is estimated to have increased marginally in the third quarter of 2010, compared to the same period last year. Group sales of food-service equipment decreased somewhat following discontinued business in sales of larger kitchen projects in North America.

Operating income improved due to higher capacity utilization within production, improved customer mix and cost efficiencies.

Market demand for professional laundry equipment is estimated to have continued to stabilize in the third quarter. Group sales increased in comparable currencies.

Operating income improved due to increased volumes and price increases.

Cash flow

Cash flow from operations and investments in the third quarter of 2010 amounted to SEK 139m (3,342).

The trend for the cash flow and working capital in the third quarter reflects a normal seasonal pattern for the second half of the year with increased production, build-up of inventories and higher sales. Cash flow from working capital in the same period of the previous year reflected a different situation with low production and low inventory levels after several quarters of very weak markets. In addition, compared to the previous year, higher capital expenditure and outlays for a previous tax settlement in Europe of approximately SEK -630m have adversely impacted cash flow.

Outlays for the ongoing restructuring and cost-cutting programs amounted to approximately SEK -220m.

Investments during the third quarter of 2010 increased from a low level in the previous year and referred to capacity expansions within manufacturing in Brazil as well as investments in new products in Europe and Mexico.

Cash flow			Nine months	Nine months
SEKm	Q3 2010	Q3 2009	2010	2009
Cash flow from operations, excluding change in operating assets and liabilities	1,681	2,611	5,887	4,207
Change in operating assets and liabilities	-433	1,330	-6	4,449
Investments	-1,109	-613	-2,808	-1,886
Cash flow from operations and investments	139	3,328	3,073	6,770
Dividend	-	-	-1,138	-
Sale of shares	-	14	18	59
Total cash flow, excluding change in loans and short term investments	139	3,342	1,953	6,829

Financial position

Total equity as of September 30, 2010, amounted to SEK 19,730m (17,480), which corresponds to SEK 69.31 (61.49) per share.

Net borrowings

SEKm	Sept. 30, 2010	Sept. 30, 2009	Dec. 31, 2009
Borrowings	12,438	14,499	14,022
Liquid funds	13,047	15,187	13,357
Net borrowings	-609	-688	665
Net debt/equity ratio	-0.03	-0.04	0.04
Equity	19,730	17,480	18,841
Equity per share, SEK	69.31	61.49	66.24
Return on equity, %	23.1	15.7	14.9
Return on equity, excluding items
affecting comparability, %	24.6	18.3	22.0
Equity/assets ratio, %	33.5	29.1	31.8

Net borrowings

Net borrowings amounted to SEK -609m (-688). The net debt/ equity ratio was -0.03 (-0.04). The equity/assets ratio was 33.5% (29.1).

During the first nine months of 2010, SEK 1,031m of long-term borrowings were amortized. Long-term borrowings as of September 30, 2010, including long-term borrowings with maturities within 12 months, amounted to SEK 9,818m with average maturities of 3.3 years, compared to SEK 11,153m and 3.9 years at the end of 2009. During 2010 and 2011, long-term borrowings in the amount of approximately SEK 1,300m will mature.

Liquid funds as of September 30, 2010, amounted to SEK 13,047m, excluding short-term back-up facilities. Since 2005, Electrolux has an unused revolving credit facility of EUR 500m maturing 2012 and since the third quarter 2010, an additional unused committed credit facility of SEK 3,400m maturing 2017.

Net assets and working capital

Average net assets for the period amounted to SEK 19,556m (19,831). Net assets as of September 30, 2010, amounted to SEK 19,121m (16,792).

Adjusted for items affecting comparability, i.e., restructuring provisions, average net assets amounted to SEK 20,940m (20,688), corresponding to 19.9% (19.2) of net sales.

Working capital as of September 30, 2010, amounted to SEK -4,320m (-7,692), corresponding to -4.3% (-7.1) of annualized net sales.

The return on net assets was 30.5% (19.9), and 30.4% (21.3), excluding items affecting comparability.

Cash flow from operations and investments

Cash flow and change in net borrowings

Changes in Group Management

President and CEO Hans Stråberg to leave Electrolux and is succeeded by Keith McLoughlin

In September 2010, Hans Stråberg notified the Board that he wishes to leave Electrolux after 27 years with the company and nine years as President and CEO. He will leave Electrolux as of January 1, 2011, and at the same time he is leaving his assignment as board member.

Keith McLoughlin will succeed Hans Stråberg. Keith McLoughlin is globally responsible for R&D, Manufacturing and Purchasing for Electrolux Major Appliances. Previously, he has been head of Major Appliances North America. He joined Electrolux in 2003.

Henrik Bergström new head of Floor Care and Small Appliances

Henrik Bergström was appointed head of Floor Care and Small Appliances in August, 2010. He succeeded Morten Falkenberg. Henrik Bergström has held various management positions within Electrolux Major Appliances North America and Latin America. He has been with Electrolux since 1997.

Anders Edholm new head of Corporate Communications

Anders Edholm was appointed new head of Corporate Communications in August, 2010. Anders Edholm succeeded Lars Göran Johansson. Anders Edholm was previously responsible for the Group's media relations and has held several management positions within corporate communications. He has been with Electrolux since 1997.

Structural changes

October 2010

Electrolux intends to acquire Olympic Group in Egypt

As part of Electrolux strategy to grow in emerging markets, Electrolux this October announced its intention to acquire Olympic Group for Financial Investments S.A.E. Olympic Group is the largest manufacturer of household appliances in the fast-growing Middle East and North Africa regions.

Olympic Group, listed on the Egyptian Stock Exchange, has 7,300 employees and manufactures washing machines, refrigerators, cookers and water heaters. In 2009, net sales amounted to 2.1 billion Egyptian pounds (EGP), approximately SEK 2.5 billion. Olympic Group's estimated volume market share of appliances in Egypt is approximately 30%.

In October, Electrolux signed a Memorandum of Understanding with Paradise Capital to acquire Paradise Capital's 52% controlling interest in Olympic Group. Electrolux intends to launch a Mandatory Tender Offer for the remaining shares in the company. Upon completion of the transaction, the ownership in the associated companies Namaa and B-Tech will be acquired by Paradise Capital.

The estimated enterprise value of Olympic Group, excluding the above mentioned associated companies, is approximately EGP 2.7 billion or SEK 3.2 billion. The acquisition is subject to satisfactory completion of the due diligence process that has been initiated, regulatory clearances and agreements on customary transaction documentation.

Upon completion of the acquisition, Olympic Group will against a management fee enter into a management agreement with Electrolux and Paradise Capital for continued technical and management support.

August 2010

Electrolux acquires washer plant in Ukraine

Electrolux has signed an agreement to acquire a washing-machine factory in Ivano-Frankivsk, Ukraine, with approximately 150 employees.

The acquisition strengthens Electrolux presence and manufacturing base in Central and Eastern Europe. Ukraine participates in the free trade framework within the Commonwealth of Independent States (CIS), which includes Russia, Kazakhstan, Armenia, Azerbaijan and other countries.

The washer factory is acquired from Antonio Merloni S.p.A. and the purchase price is EUR 19m. Closing of the deal is expected to take place in the first quarter of 2011, and is subject to approval by competition authorities.

Other items

Asbestos litigation in the US

Litigation and claims related to asbestos are pending against the Group in the US. Almost all of the cases refer to externally supplied components used in industrial products manufactured by discontinued operations prior to the early 1970s. Some of the cases involve multiple plaintiffs who have made identical allegations against many other defendants who are not part of the Electrolux Group.

As of September 30, 2010, the Group had a total of 2,968 (2,851) cases pending, representing approximately 3,260 (approximately 3,160) plaintiffs. During the third quarter 2010, 281 new cases with 281 plaintiffs were filed and 204 pending cases with approximately 204 plaintiffs were resolved. Approximately 39 of the plaintiffs relate to cases pending in the state of Mississippi.

Additional lawsuits may be filed against Electrolux in the future. It is not possible to predict either the number of future claims or the number of plaintiffs that any future claims may represent. In addition, the outcome of asbestos claims is inherently uncertain and always difficult to predict and Electrolux cannot provide any assurances that the resolution of these types of claims will not have a material adverse effect on its business or on results of operations in the future.

Relocation of production, items affecting comparability, restructuring measures 2007–2011

Plant closures and cutbacks
Torsvik	Sweden	Compact appliances	(Q1 2007)
Nuremberg	Germany	Dishwashers, washing machines and dryers	(Q1 2007)
Adelaide	Australia	Dishwashers	(Q2 2007)
Fredericia	Denmark	Cookers	(Q4 2007)
Adelaide	Australia	Washing machines	(Q1 2008)
Spennymoor	UK	Cookers	(Q4 2008)
Changsha	China	Refrigerators	(Q1 2009)
Scandicci	Italy	Refrigerators	(Q2 2009)
St. Petersburg	Russia	Washing machines	(Q2 2010)
Re-engineering			Effected
Porcia	Italy	Washing machines	(Q4 2010)

Authorized closures			Estimated closure
Webster City	USA	Washing machines	(Q1 2011)
Alcalà	Spain	Washing machines	(Q1 2011)
Consolidation			Starting
Charlotte	USA	New North American headquarters	(Q3 2010)

In 2004, Electrolux initiated a restructuring program to make the Group's production competitive in the long term. When it is fully implemented in 2011, more than half of production of appliances will be located in low-cost countries and savings will amount to approximately SEK 3 billion annually. Restructuring provisions and write-downs are reported as items affecting comparability within operating income. For information on provisions in 2010, see table on page 10.

Nomination Committee

In accordance with the decision by the Annual General Meeting in March 2010, Electrolux Nomination Committee shall consist of six members. The members should be one representative of each of the four largest shareholders in terms of voting rights that wish to participate in the committee, together with the Chairman of the Electrolux Board and one additional Board member.

The members of the Nomination Committee have now been appointed based on the ownership structure as of August 31, 2010. Petra Hedengran, Investor AB, is the Chairman of the committee. The other owner representatives are Ramsay J. Brufer, Alecta, Marianne Nilsson, Swedbank Robur Funds, and Peter Rudman, Nordea Investment Funds. The committee will also include Marcus Wallenberg and Peggy Bruzelius, Chairman and Deputy Chairman, respectively, of Electrolux.

The Nomination Committee will prepare proposals for the Annual General Meeting in 2011 regarding Chairman of the Annual General Meeting, Board members, Chairman of the Board, remuneration for Board members and the procedure for appointing the Nomination Committee for the following year.

Electrolux Annual General Meeting 2011 will be held on March 31 at the Berwald Hall, Dag Hammarskjölds väg 3, Stockholm, Sweden.

Shareholders who wish to submit proposals to the Nomination Committee should send an email to nominationcommittee@electrolux.com.

Risks and uncertainty factors

Risks in connection with the Group's operations can, in general, be divided into operational risks related to business operations and those related to financial operations. Operational risks are normally managed by the operative units within the Group, and financial risks by the Group's treasury department.

Risks and uncertainty factors

Electrolux operates in competitive markets, most of which are relatively mature. Demand for appliances varies with general business conditions, and price competition is strong in a number of product categories. Electrolux ability to increase profitability and shareholder value is largely dependent on its success in developing innovative products and maintaining cost-efficient production. Major factors for maintaining and increasing competitiveness include managing fluctuations in prices for raw materials and components as well as implementing restructuring. In addition to these operative risks, the Group is exposed to risks related to financial operations, e.g., interest risks, financing risks, currency risks and credit risks. The Group's development is strongly affected by external factors, of which the most important in terms of managing risks currently include:

Variations in demand

Demand for appliances is affected by the general business cycle. A deterioration in these conditions may lead to lower sales volumes as well as a shift of demand to low-price products, which generally have lower margins. Utilization of production capacity may also decline in the short term. The global economic trend is an uncertainty factor in terms of the development of earnings in 2010.

Price competition

A number of the markets in which Electrolux operates features strong price competition. The Group's strategy is based on innovative products and brand-building, and is aimed, among other things, at minimizing and offsetting price competition for its products.

A continued downturn in market conditions involves a risk of increasing price competition.

Changes in prices for raw materials and components

The raw materials to which the Group is mainly exposed comprise steel, plastics, copper and aluminum. Bilateral agreements are used to manage price risks. To some extent, raw materials are purchased at spot prices. There is considerable uncertainty regarding trends for the prices of raw materials.

Access to financing

The Group's loan-maturity profile for 2010 and 2011 represents maturities of approximately SEK 1,300m in long-term borrowings.

Since 2005, Electrolux has an unused revolving credit facility of EUR 500m maturing 2012 and since the third quarter 2010, an additional unused committed credit facility of SEK 3,400m maturing 2017.

Risks, risk management and risk exposure are described in more detail in the Annual Report 2009, www.electrolux.com/annualreport2009.

Sensitivity analysis year-end 2009 Raw-materials exposure 2009

Carbon steel, 39% Stainless steel, 8% Copper and aluminum, 11% Plastics, 23% Other, 19%

In 2009, Electrolux purchased raw materials for approximately SEK 19 billion. Purchases of steel accounted for the largest cost.

1) Include translation and transaction effects.

Parent Company AB Electrolux

The Parent Company comprises the functions of the Group's head office, as well as five companies operating on a commission basis for AB Electrolux.

Net sales for the Parent Company, AB Electrolux, for the first nine months of 2010 amounted to SEK 4,182m (3,634) of which SEK 2,312m (1,680) referred to sales to Group companies and SEK 1,870m (1,954) to external customers. Income after financial items was SEK 3,067m (989), including dividends from subsidiaries in the amount of SEK 2,280m (1,159). Income for the period amounted to SEK 2,962m (1,035).

Capital expenditure in tangible and intangible assets was SEK 335m (194). Liquid funds at the end of the period amounted to SEK 6,320m (7,551), as against SEK 3,869m at the start of the year.

Undistributed earnings in the Parent Company at the end of the period amounted to SEK 14,756m, as against SEK 12,694m at the start of the year. Dividend payment to shareholders for 2009 amounted to SEK 1,138m.

The income statement and balance sheet for the Parent Company are presented on page 18.

Stockholm, October 27, 2010

Hans Stråberg President and CEO

Review report

We have reviewed this report for the period January 1st to September 30th, 2010 for AB Electrolux (publ). The board of directors and the CEO are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

We conducted our review in accordance with the Swedish Standard on Review Engagements SÖG 2410, Review of Interim Report Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing in Sweden, RS, and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act, regarding the Group, and with the Swedish Annual Accounts Act, regarding the Parent Company.

Stockholm, October 27, 2010

PricewaterhouseCoopers AB

Anders Lundin Authorized Public Accountant Lead partner

Björn Irle Authorized Public Accountant

Hans Stråberg's comments

Accounting and valuation principles

Electrolux applies International Financial Reporting Standards (IFRS) as adopted by the European Union. This report has been prepared in accordance with IAS 34, Interim Financial Reporting, and ÅRL, the Swedish Annual Accounts Act and recommendation RFR 2, Accounting for legal entities, issued by the Swedish Financial Reporting Board. There are no changes in the Group's accounting and valuation principles compared with the accounting and valuation principles described in Note 1 of the Annual Report 2009.

Press releases 2010

January 29	Conversion of shares	August 9	Electrolux acquires manufacturing operations in Ukraine
February 3	Consolidated results 2009 and CEO	August 25	Anders Edholm appointed SVP Corporate Communica
	Hans Stråberg's comments		tions at Electrolux
February 10	Electrolux delists from the London Stock Exchange	August 27	Henrik Bergström appointed head of Floor Care & Small
March 2	Lorna Davis proposed new Board member of Electrolux		Appliances
March 11	Electrolux delisted from the London Stock Exchange	September 2	Electrolux Annual Report ranked best in the world
April 27	Interim report January-March and CEO	September 10	Electrolux included in Dow Jones Sustainability World
	Hans Stråberg's comments		Index for the fourth consecutive year
	- Morten Falkenberg, head of Floor Care and Small	September 23	Hans Stråberg to leave Electrolux and is succeeded by
	Appliances, will leave Electrolux		Keith McLoughlin as President and CEO
	- Lars Göran Johansson, head of Communications and	September 30	Nomination committee appointed for Electrolux Annual
	Branding, will leave Electrolux		General Meeting 2011
May 12	Electrolux is named "global superstar" by Forbes Magazine	October 11	Electrolux signs a preliminary agreement to acquire 52% in
July 19	Interim report January-June and CEO		the Egyptian company Olympic Group
	Hans Stråberg's comments	October 27	Interim report January-September and CEO

Consolidated income statement

SEKm	Q3 2010	Q3 2009	Nine months 2010	Nine months 2009	Full year 2009
Net sales	26,326	27,617	78,770	80,917	109,132
Cost of goods sold	-20,265	-21,574	-61,125	-65,160	-86,980
Gross operating income	6,061	6,043	17,645	15,757	22,152
Selling expenses	-2,814	-2,486	-8,786	-8,575	-11,394
Administrative expenses	-1,272	-1,310	-4,080	-3,869	-5,375
Other operating income/expenses	2	-13	1	-14	-61
Items affecting comparability	-	56	-302	-343	-1,561
Operating income	1,977	2,290	4,478	2,956	3,761
Margin, %	7.5	8.3	5.7	3.7	3.4
Financial items, net	-76	-46	-97	-273	-277
Income after financial items	1,901	2,244	4,381	2,683	3,484
Margin, %	7.2	8.1	5.6	3.3	3.2
Taxes	-520	-613	-1,061	-740	-877
Income for the period	1,381	1,631	3,320	1,943	2,607
Available for sale instruments1)	111	55	140	129	138
Cash-flow hedges2)	-41	14	-140	-153	-112
Exchange differences on translation of foreign operations3)	-1,388	-1,479	-1,298	-894	-264
Income tax relating to other comprehensive income	-58	-	-63	-	-
Other comprehensive income, net of tax	-1,376	-1,410	-1,361	-918	-238
Total comprehensive income for the period	5	221	1,959	1,025	2,369
Income for the period attributable to:
Equity holders of the Parent Company	1,381	1,631	3,320	1,943	2,607
Total comprehensive income for the period attributable to:
Equity holders of the Parent Company	5	221	1,959	1,025	2,369
Earnings per share, SEK	4.85	5.74	11.66	6.84	9.18
Diluted, SEK	4.82	5.73	11.61	6.83	9.16
Number of shares after buy-backs, million	284.7	284.3	284.7	284.3	284.4
Average number of shares after buy-backs, million	284.7	284.2	284.6	283.9	284.0
Diluted, million	286.4	284.8	285.9	284.5	284.6

1) Available for sale instruments refer to the fair-value changes in Electrolux shareholdings in Videocon Industries Ltd., India. The shareholdings are classified as available for sale in accordance with IFRS.

2) Cash-flow hedges refer to changes in valuation of currency contracts used for hedging future foreign currency transactions. When the actual transaction occurs, the result is reported within operating income.

3) Exchange-rate differences on translation of foreign operations refer to changes in exchange rates when net investments in foreign subsidiaries are translated to SEK. The amount is reported net of hedging contracts.

Items affecting comparability

SEKm	Q3 2010	Q3 2009	Nine months 2010	Nine months 2009	Full year 2009
Restructuring provisions and write-downs
Appliances plant in Revin, France	-	-	-71	-	-
Appliances plant in Forli, Italy	-	-	-136	-	-
Appliances plant in Motala, Sweden	-	-	-95	-	-
Appliances plant in Alcalà, Spain	-	-	-	-	-440
Appliances plants in Webster City and Jefferson, USA	-	-	-	-	-560
Office consolidation in USA	-	-	-	-	-218
Appliances plant in Changsha, China	-	-	-	-162	-162
Appliances plant in Porcia, Italy	-	-	-	-132	-132
Appliances plant in St. Petersburg, Russia	-	-	-	-105	-105
Reversal of unused restructuring provisions	-	56	-	56	56
Total	-	56	-302	-343	-1,561

11 Interim report January - September 2010

Consolidated balance sheet

SEKm	Sept. 30, 2010	Sept. 30, 2009	Dec. 31, 2009
Assets
Property, plant and equipment	14,199	15,275	15,315
Goodwill	2,207	2,196	2,274
Other intangible assets	3,132	2,765	2,999
Investments in associates	17	19	19
Deferred tax assets	2,364	2,718	2,693
Financial assets	582	416	434
Other non-current assets	1,748	1,658	1,745
Total non-current assets	24,249	25,047	25,479
Inventories	12,016	11,081	10,050
Trade receivables	19,147	20,754	20,173
Tax assets	443	515	1,103
Derivatives	894	741	377
Other current assets	3,435	3,125	2,947
Short-term investments	1,881	2,478	3,030
Cash and cash equivalents	9,947	11,579	9,537
Total current assets	47,763	50,273	47,217
Total assets	72,012	75,320	72,696
Equity and liabilities Equity attributable to equity holders of the Parent Company
Share capital	1,545	1,545	1,545
Other paid-in capital	2,905	2,905	2,905
Other reserves	453	1,134	1,814
Retained earnings	14,827	11,896	12,577
Total equity	19,730	17,480	18,841
Long-term borrowings	9,119	10,323	10,241
Deferred tax liabilities	808	563	819
Provisions for post-employment benefits	1,603	6,086	2,168
Other provisions	5,240	4,330	5,449
Total non-current liabilities	16,770	21,302	18,677
Accounts payable	17,555	16,316	16,031
Tax liabilities	1,722	2,469	2,367
Short-term liabilities	11,486	11,783	11,235
Short-term borrowings	2,333	3,278	3,364
Derivatives	862	723	351
Other provisions	1,554	1,969	1,830
Total current liabilities	35,512	36,538	35,178
Total equity and liabilities	72,012	75,320	72,696
Contingent liabilities	1,120	1,317	1,185

Shares

Number of shares	Outstanding A-shares	Outstanding B-shares	Shares held by Electrolux	Shares held by other shareholders
Number of shares as of January 1, 2010	9,502,275	299,418,033	24,498,841	284,421,467
Conversion of A-shares into B-shares	-494,150	494,150
Shares sold to senior managers under the stock-option programs
First quarter			-42,550	42,550
Second quarter			-201,206	201,206
Third quarter			-	-
Shares alloted to senior managers under the Performance Share Program			-	-
Number of shares as of September 30, 2010	9,008,125	299,912,183	24,255,085	284,665,223
As % of total number of shares			7.9%

Consolidated cash flow statement

SEKm	Q3 2010	Q3 2009	Nine months 2010	Nine months 2009	Full year 2009
Operations
Operating income	1,977	2,290	4,478	2,956	3,761
Depreciation and amortization	814	811	2,479	2,568	3,442
Capital gain/loss included in operating income	4	-	4	-	-
Restructuring provisions	-225	-389	-293	-507	434
Share-based compensation	17	7	50	11	18
Financial items paid, net	-22	3	5	-220	-348
Taxes paid	-884	-111	-836	-601	-929
Cash flow from operations, excluding change in operating assets and liabilities	1,681	2,611	5,887	4,207	6,378
Change in operating assets and liabilities
Change in inventories	-433	462	-2,845	1,005	2,276
Change in trade receivables	77	-806	-343	-244	1,209
Change in other current assets	-267	229	-826	227	487
Change in accounts payable	-183	517	3,113	1,454	628
Extra contributions to pension funds	-	-	-	-	-3,935
Change in other operating liabilities and provisions	373	928	895	2,007	1,254
Cash flow from change in operating assets and liabilities	-433	1,330	-6	4,449	1,919
Cash flow from operations	1,248	3,941	5,881	8,656	8,297
Investments
Divestment of operations	7	4	7	4	4
Capital expenditure in property, plant and equipment	-858	-490	-2,061	-1,408	-2,223
Capitalization of product development	-84	-102	-273	-313	-370
Other	-174	-25	-481	-169	-378
Cash flow from investments	-1,109	-613	-2,808	-1,886	-2,967
Cash flow from operations and investments	139	3,328	3,073	6,770	5,330
Financing
Change in short-term investments	69	-559	1,131	-2,183	-2,734
Change in short-term borrowings	-137	-859	-1,828	-1,325	-1,131
New long-term borrowings	371	7	377	1,639	1,639
Amortization of long-term borrowings	-8	-43	-1,031	-567	-1,040
Dividend	-	-	-1,138	-	-
Sale of shares	-	14	18	59	69
Cash flow from financing	295	-1,440	-2,471	-2,377	-3,197
Total cash flow	434	1,888	602	4,393	2,133
Cash and cash equivalents at beginning of period	9,892	9,964	9,537	7,305	7,305
Exchange-rate differences
	-379	-273	-192	-119	99

Change in consolidated equity

SEKm	Sept. 30, 2010	Sept. 30, 2009	Dec. 31, 2009
Opening balance	18,841	16,385	16,385
Total comprehensive income for the period	1,959	1,025	2,369
Share-based payment	50	11	18
Sale of shares	18	59	69
Dividend payable	-1,138	-	-
Total transactions with equity holders	-1,070	70	87
Closing balance	19,730	17,480	18,841

Working capital and net assets

SEKm	Sept. 30, 2010	% of annualized net sales	Sept. 30, 2009	% of annualized net sales	Dec. 31, 2009	% of annualized net sales
Inventories	12,016	11.9	11,081	10.2	10,050	8.8
Trade receivables	19,147	18.9	20,754	19.2	20,173	17.7
Accounts payable	-17,555	-17.3	-16,316	-15.1	-16,031	-14.1
Provisions	-8,397		-12,385		-9,447
Prepaid and accrued income and expenses	-7,880		-8,477		-7,998
Taxes and other assets and liabilities	-1,651		-2,349		-1,901
Working capital	-4,320	-4.3	-7,692	-7.1	-5,154	-4.5
Property, plant and equipment	14,199		15,275		15,315
Goodwill	2,207		2,196		2,274
Other non-current assets	5,479		4,858		5,197
Deferred tax assets and liabilities	1,556		2,155		1,874
Net assets	19,121	18.9	16,792	15.5	19,506	17.1
Average net assets	19,556	18.6	19,831	18.4	19,411	17.8
Average net assets, excluding items affecting comparability	20,940	19.9	20,688	19.2	20,320	18.6

Key ratios

	Q3 2010	Q3 2009	Nine months 2010	Nine months 2009	Full year 2009
Net sales, SEKm	26,326	27,617	78,770	80,917	109,132
Operating income, SEKm	1,977	2,290	4,478	2,956	3,761
Margin, %	7.5	8.3	5.7	3.7	3.4
EBITDA, SEKm	2,791	3,101	6,957	5,524	7,203
Earnings per share, SEK¹)	4.85	5.74	11.66	6.84	9.18
Return on net assets, %	-	-	30.5	19.9	19.4
Return on equity, %	-	-	23.1	15.7	14.9
Equity per share, SEK	-	-	69.31	61.49	66.24
Cash flow from operations, SEKm	1,248	3,941	5,881	8,656	8,297
Capital expenditure, SEKm	-858	-490	-2,061	-1,408	-2,223
Net borrowings, SEKm	-	-	-609	-688	665
Net debt/equity ratio	-	-	-0.03	-0.04	0.04
Equity/assets ratio, %	-	-	33.5	29.1	31.8
Average number of employees	52,349	49,846	51,704	50,354	50,633
Excluding items affecting comparability
Operating income, SEKm	1,977	2,234	4,780	3,299	5,322
Margin, %	7.5	8.1	6.1	4.1	4.9
EBITDA, SEKm	2,791	3,045	7,259	5,867	8,764
Earnings per share, SEK¹)	4.85	5.55	12.42	7.99	13.56
Return on net assets, %	-	-	30.4	21.3	26.2
Return on equity, %	-	-	24.6	18.3	22.0

1) Basic, based on average number of shares, excluding shares owned by Electrolux, see page 15.

For definitions, see page 19.

Net sales by business area*

SEKm	Q3 2010	Q3 2009	Nine months 2010	Nine months 2009	Full year 2009
Consumer Durables Europe, Middle East and Africa	10,210	11,322	29,278	32,342	44,073
Consumer Durables North America	8,353	8,869	26,375	27,861	35,726
Consumer Durables Latin America	4,069	3,813	11,972	9,764	14,165
Consumer Durables Asia/Pacific	2,192	1,982	6,402	5,738	8,033
Professional Products	1,501	1,629	4,732	5,206	7,129
Other	1	2	11	6	6
Total	26,326	27,617	78,770	80,917	109,132

Operating income by business area*

SEKm	Q3 2010	Q3 2009	Nine months 2010	Nine months 2009	Full year 2009
Consumer Durables Europe, Middle East and Africa	1,014	1,014	2,138	1,474	2,349
Margin, %	9.9	9.0	7.3	4.6	5.3
Consumer Durables North America	439	705	1,257	1,026	1,476
Margin, %	5.3	7.9	4.8	3.7	4.1
Consumer Durables Latin America	231	318	688	510	878
Margin, %	5.7	8.3	5.7	5.2	6.2
Consumer Durables Asia/Pacific	265	164	656	250	458
Margin, %	12.1	8.3	10.2	4.4	5.7
Professional Products	202	173	500	443	668
Margin, %	13.5	10.6	10.6	8.5	9.4
Total business areas	2,151	2,374	5,239	3,703	5,829
Margin, %	8.2	8.6	6.7	4.6	5.3
Common Group costs, etc.	-174	-140	-459	-404	-507
Items affecting comparability	0	56	-302	-343	-1,561
Operating income	1,977	2,290	4,478	2,956	3,761

* Figures for 2009 have been restated according to the new reporting structure, see page 16.

Change in net sales by business area

Year-over-year, %	Q3 2010	Q3 2010 in comparable currencies	Nine months 2010	Nine months 2010 in comparable currencies
Consumer Durables Europe, Middle East and Africa	-9.8	-3.8	-9.5	-2.8
Consumer Durables North America	-5.8	-4.3	-5.3	0.4
Consumer Durables Latin America	6.7	1.3	22.6	15.7
Consumer Durables Asia/Pacific	10.6	7.9	11.6	6.7
Professional Products	-7.9	-3.0	-9.1	-3.0
Total change	-4.7	-2.3	-2.7	1.5

Change in operating income by business area

Year-over-year, %	Q3 2010	Q3 2010 in comparable currencies	Nine months 2010	Nine months 2010 in comparable currencies
Consumer Durables Europe, Middle East and Africa	0.0	11.0	45.0	55.2
Consumer Durables North America	-37.7	-35.3	22.5	26.5
Consumer Durables Latin America	-27.4	-35.6	34.9	40.7
Consumer Durables Asia/Pacific	61.6	61.0	162.4	130.2
Professional Products	16.8	21.4	12.9	19.9
Total change, excluding items affecting comparability	-11.5	-8.8	44.9	50.8

Exchange rates

SEK	Sept. 30, 2010	Sept. 30, 2009	Dec. 31, 2009
AUD, average	6.55	5.85	5.98
AUD, end of period	6.50	6.15	6.43
BRL, average	4.11	3.73	3.80
BRL, end of period	3.96	3.92	4.13
CAD, average	7.01	6.68	6.68
CAD, end of period	6.50	6.49	6.86
EUR, average	9.67	10.70	10.63
EUR, end of period	9.16	10.22	10.33
GBP, average	11.25	11.95	11.84
GBP, end of period	10.66	11.21	11.41
HUF, average	0.0351	0.0380	0.0380
HUF, end of period	0.0330	0.0378	0.0379
USD, average	7.30	7.80	7.63
USD, end of period	6.71	6.97	7.19

Net sales and income per quarter

SEKm		Q1	Q2	Q3	Q4	Full year
Net sales	2010	25,133	27,311	26,326		78,770
	2009	25,818	27,482	27,617	28,215	109,132
Operating income	2010	1,231	1,270	1,977		4,478
	Margin, %	4.9	4.7	7.5		5.7
	2010¹)	1,326	1,477	1,977		4,780
	Margin, %	5.3	5.4	7.5		6.1
	2009	-386	1,052	2,290	805	3,761
	Margin, %	-1.5	3.8	8.3	2.9	3.4
	2009¹)	38	1,027	2,234	2,023	5,322
	Margin, %	0.1	3.7	8.1	7.2	4.9
Income after financial items	2010	1,211	1,269	1,901		4,381
	Margin, %	4.8	4.6	7.2		5.6
	2010¹)	1,306	1,476	1,901		4,683
	Margin, %	5.2	5.4	7.2		5.9
	2009	-493	932	2,244	801	3,484
	Margin, %	-1.9	3.4	8.1	2.8	3.2
	2009¹)	-69	907	2,188	2,019	5,045
	Margin, %	-0.3	3.3	7.9	7.2	4.6
Income for the period	2010	911	1,028	1,381		3,320
	2009	-346	658	1,631	664	2,607
Earnings per share, SEK ²)	2010	3.20	3.61	4.85		11.66
	2010¹)	3.45	4.12	4.85		12.42
	2009	-1.22	2.32	5.74	2.34	9.18
	2009¹)	0.21	2.23	5.55	5.57	13.56

1) Excluding items affecting comparability.

2) Basic, based on average number of shares, excluding shares owned by Electrolux.

Number of shares, basic

Number of shares after buy-backs, million	2010	284.5	284.7	284.7		284.5
	2009	283.6	284.1	284.3	284.4	284.4
Average number of shares after buy-backs, million	2010	284.5	284.6	284.7		284.5
	2009	283.6	283.9	284.2	284.4	284.0
Items affecting comparability
Restructuring provisions, write-downs and capital	2010	-95	-207	0		-302
loss on divestment, SEKm	2009	-424	25	56	-1,218	-1,561

Net sales by business area per quarter*

SEKm		Q1	Q2	Q3	Q4	Full year
Consumer Durables Europe, Middle East and Africa	2010	9,719	9,349	10,210		29,278
	2009	10,568	10,452	11,322	11,731	44,073
Consumer Durables North America	2010	7,995	10,027	8,353		26,375
	2009	9,144	9,848	8,869	7,865	35,726
Consumer Durables Latin America	2010	3,998	3,905	4,069		11,972
	2009	2,625	3,326	3,813	4,401	14,165
Consumer Durables Asia/Pacific	2010	1,912	2,298	2,192		6,402
	2009	1,752	2,004	1,982	2,295	8,033
Professional Products	2010	1,501	1,730	1,501		4,732
	2009	1,727	1,850	1,629	1,923	7,129

Operating income by business area per quarter*

SEKm		Q1	Q2	Q3	Q4	Full year
Consumer Durables Europe, Middle East and Africa	2010	620	504	1,014		2,138
	Margin, %	6.4	5.4	9.9		7.3
	2009	160	300	1,014	875	2,349
	Margin, %	1.5	2.9	9.0	7.5	5.3
Consumer Durables North America	2010	360	458	439		1,257
	Margin, %	4.5	4.6	5.3		4.8
	2009	-177	498	705	450	1,476
	Margin, %	-1.9	5.1	7.9	5.7	4.1
Consumer Durables Latin America	2010	220	237	231		688
	Margin, %	5.5	6.1	5.7		5.7
	2009	50	142	318	368	878
	Margin, %	1.9	4.3	8.3	8.4	6.2
Consumer Durables Asia/Pacific	2010	160	231	265		656
	Margin, %	8.4	10.1	12.1		10.2
	2009	25	61	164	208	458
	Margin, %	1.4	3.0	8.3	9.1	5.7
Professional Products	2010	91	207	202		500
	Margin, %	6.1	12.0	13.5		10.6
	2009	105	165	173	225	668
	Margin, %	6.1	8.9	10.6	11.7	9.4
Common Group costs, etc.	2010	-125	-160	-174		-459
	2009	-125	-139	-140	-103	-507
Items affecting comparability	2010	-95	-207	0		-302
	2009	-424	25	56	-1,218	-1,561

* As of the first quarter of 2010, the operations within "Rest of world" – i.e., the Middle East and Africa – is reported within Consumer Durables Europe. Operations in the Middle East and Africa were previously part of the business area Consumer Durables Asia/Pacific and Rest of world. The new reporting structure reflects an organizational change as of 2010, with Major Appliances Europe responsible for the Middle East and Africa. For previous reporting structure, see table below.

Previous reporting structure

Q3	Q4	Full year 2009
10,905	11,285	42,300
977	829	2,188
9.0	7.3	5.2
2,399	2,741	9,806
201	254	619
8.4	9.3	6.3

Net assets by business area

		Assets			Equity and liabilities			Net assets
SEKm	Sept. 30, 2010	Sept. 30, 2009	Dec. 31, 2009	Sept. 30, 2010	Sept. 30, 2009	Dec. 31, 2009	Sept. 30, 2010	Sept. 30, 2009	Dec. 31, 2009
Consumer Durables Europe Middle East and Africa	30,330	32,903	34,164	22,400	26,281	26,373	7,930	6,622	7,791
Consumer Durables North America	10,162	10,363	8,336	3,909	4,118	438	6,253	6,245	7,898
Consumer Durables Latin America	7,278	6,079	5,854	3,486	2,861	2,664	3,792	3,218	3,190
Consumer Durables Asia/Pacific	3,806	3,825	3,030	1,777	1,611	1,088	2,029	2,214	1,942
Professional Products	2,474	2,719	2,413	1,702	1,776	1,345	772	943	1,068
Other1)	5,025	4,432	5,738	5,462	6,181	6,685	-437	-1,749	-947
Items affecting comparability	-110	-188	-196	1,108	513	1,240	-1,218	-701	-1,436
Total operating assets and liabilities	58,965	60,133	59,339	39,844	43,341	39,833	19,121	16,792	19,506
Liquid funds	13,047	15,187	13,357	—	—	—	—	—	—
Interest-bearing receivables	—	—	—	—	—	—	—	—	—
Interest-bearing liabilities	—	—	—	12,438	14,499	14,022	—	—	—
Equity	—	—	—	19,730	17,480	18,841	—	—	—
Total	72,012	75,320	72,696	72,012	75,320	72,696	—	—	—

1) Includes common Group functions.

Parent Company, income statement

SEKm	Q3 2010	Q3 2009	Nine months 2010	Nine months 2009	Full year 2009
Net sales	1,453	1,213	4,182	3,634	5,928
Cost of goods sold	-1,034	-1,004	-3,037	-3,047	-4,368
Gross operating income	419	209	1,145	587	1,560
Selling expenses	-202	-146	-697	-455	-865
Administrative expenses	-217	-43	-600	-168	-367
Other operating income	255	190	255	193	160
Other operating expenses	-1	-955	-96	-962	-1,083
Operating income	254	-745	7	-805	-595
Financial income	189	728	2,847	1,918	3,989
Financial expenses	180	27	213	-124	-233
Financial items, net	369	755	3,060	1,794	3,756
Income after financial items	623	10	3,067	989	3,161
Appropriations	13	7	20	20	20
Income before taxes	636	17	3,087	1,009	3,181
Taxes	-64	9	-125	26	174
Income for the period	572	26	2,962	1,035	3,355

Parent Company, balance sheet

SEKm	Sept. 30, 2010	Sept. 30, 2009	Dec. 31, 2009
Assets
Non-current assets	28,167	26,549	26,901
Current assets	21,338	22,680	20,604
Total assets	49,505	49,229	47,505
Equity and liabilities
Restricted equity	4,562	4,562	4,562
Non-restricted equity	14,756	10,381	12,694
Total equity	19,318	14,943	17,256
Untaxed reserves	663	684	684
Provisions	612	580	584
Non-current liabilities	8,165	9,603	9,512
Current liabilities	20,747	23,419	19,469
Total equity and liabilities	49,505	49,229	47,505
Pledged assets	4	9	4
Contingent liabilities	1,628	1,747	1,818

Five-year review

						Including Husqvarna
	2009	2008	2007	2006	2005	2005
Net sales, SEKm	109,132	104,792	104,732	103,848	100,701	129,469
Operating income, SEKm	3,761	1,188	4,475	4,033	1,044	3,942
Margin, %	3.4	1.1	4.3	3.9	1.0	3.0
Margin, excluding items affecting comparability, %	4.9	1.5	4.6	4.4	4.0	5.4
Income after financial items, SEKm	3,484	653	4,035	3,825	494	3,215
Margin, %	3.2	0.6	3.9	3.7	0.5	2.5
Margin, excluding items affecting comparability, %	4.6	1.0	4.2	4.2	3.4	4.8
Income for the period, SEKm	2,607	366	2,925	2,648	-142	1,763
Earnings per share, SEK	9.18	1.29	10.41	9.17	-0.49	6.05
Average number of shares after buy-backs, million	284.0	283.1	281.0	288.8	291.4	291.4
Dividend, SEK	4.00	-	4.25	4.00	7.50	7.50
Value creation, SEKm	2,884	-1,040	2,053	2,202	1,305	2,913
Return on equity, %	14.9	2.4	20.3	18.7	-	7.0
Return on net assets, %	19.4	5.8	21.7	23.2	5.4	13.0
Net debt/equity ratio	0.04	0.28	0.29	-0.02	-	0.11
Capital expenditure, SEKm	2,223	3,158	3,430	3,152	3,654	4,765
Average number of employees	50,633	55,177	56,898	55,471	57,842	69,523

Definitions

Capital indicators

Annualized sales

In computation of key ratios where capital is related to net sales, the latter are annualized and converted at year-end-exchange rates and adjusted for acquired and divested operations.

Net assets

Total assets exclusive of liquid funds and interest-bearing financial receivables less operating liabilities, non-interest-bearing provisions and deferred tax liabilities.

Working capital

Current assets exclusive of liquid funds and interest-bearing financial receivables less operating liabilities and non-interest-bearing provisions.

Total borrowings

Total borrowings consist of interest-bearing liabilities, fair-value derivatives, accrued interest expenses and prepaid interest income, and trade receivables with recourse.

Net borrowings Total borrowings less liquid funds.

Net debt/equity ratio Net borrowings in relation to equity.

Equity/assets ratio Equity as a percentage of total assets less liquid funds.

Other key ratios

Earnings per share Income for the period divided by the average number of shares after buy-backs.

Operating margin

Operating income expressed as a percentage of net sales.

EBITDA

Operating income before depreciation and amortization.

Return on equity

Income for the period expressed as a percentage of average equity.

Return on net assets

Operating income expressed as a percentage of average net assets.

President and CEO Hans Stråberg's comments on the third-quarter results 2010

Today's press release is available on the Electrolux website www.electrolux.com/ir

Telephone conference

A telephone conference is held at 15.00 CET on October 27, 2010. The conference is chaired by Hans Stråberg, President and CEO of Electrolux. Mr. Stråberg is accompanied by Jonas Samuelson, CFO, and Peter Nyquist, Head of Investor Relations and Financial Information.

A slide presentation on the third-quarter results of 2010 will be available on the Electrolux website www.electrolux.com/ir

Details for participation by telephone are as follows: Participants in Sweden should call +46 (0)8 505 598 53 Participants in UK/Europe should call +44 (0)20 3043 2436 Participants in US should call +1 866 458 4087

You can also listen to the presentation at http://www.electrolux.com/webcast1

For further information

Peter Nyquist, Head of Investor Relations and Financial Information: +46 (0)8 738 60 03.

Financial information from Electrolux is also available at www.electrolux.com/ir

Factors affecting forward-looking statements

This report contains "forward-looking" statements within the meaning of the US Private Securities Litigation Reform Act of 1995. Such statements include, among others, the financial goals and targets of Electrolux for future periods and future business and financial plans. These statements are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially due to a variety of factors. These factors include, but may not be limited to the following; consumer demand and market conditions in the geographical areas and industries in which Electrolux operates, effects of currency fluctuations, competitive pressures to reduce prices, significant loss of business from major retailers, the success in developing new products and marketing initiatives, developments in product liability litigation, progress in achieving operational and capital efficiency goals, the success in identifying growth opportunities and acquisition candidates and the integration of these opportunities with existing businesses, progress in achieving structural and supply-chain reorganization goals.

Calendar 2011

Financial reports 2011 Consolidated results Interim report January - March Interim report January - June Interim report January - September	February 2 April 27 July 19 October 28	Annual General Meeting 2011 The Annual General Meeting of AB Electrolux will be held on Thursday, March 31, 2011, at the Berwald Hall, Dag Hammar skjölds väg 3, Stockholm, Sweden.
Annual Report 2010 Available at the Group's website	Week 10	Electrolux discloses the information provided herein pursuant to the Securities Market Act and/or the Financial Instruments Trading Act. The information was submitted for publication at 08.00 CET on October 27, 2010.