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Electrolux — Interim / Quarterly Report 2012
Apr 25, 2012
2907_10-q_2012-04-25_103f8ba6-7e83-459b-987a-13890cfe3516.pdf
Interim / Quarterly Report
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Interim report January – March 2012
Stockholm, April 25, 2012
Highlights of the first quarter of 2012
- • Net sales amounted to SEK 25,875m (23,436) and income for the period was SEK 559m (457), or SEK 1.96 (1.61) per share.
- • Net sales improved by 10.4%, of which 3.5% was organic growth.
- • The acquisitions of CTI and Olympic Group impacted sales by 5.8%.
- • Strong organic growth, especially in emerging markets, contributed to the positive development of net sales.
- • Increased volumes in Europe due to market-share gain in the built-in segment.
- • Operating income improved to SEK 943m (696).
- • Higher sales prices in North America had a positive impact on operating income.
- • Higher costs for raw materials continued to impact earnings negatively, but to a lesser extent than in previous quarters.
| SEKm | Q1 2012 2) | $Q12011^{2}$ | Change, % |
|---|---|---|---|
| Net sales | 25.875 | 23.436 | 10 |
| Operating income | 943 | 696 | 35 |
| Margin, % | 3.6 | 3.0 | |
| Income after financial items | 792 | 637 | 24 |
| Income for the period | 559 | 457 | 22 |
| Earnings per share, SEK 1) | 1.96 | 1.61 |
1) Basic, based on an average of 285.4 (284.7) million shares for the first quarter, excluding shares held by Electrolux. 2) There were no items affecting comparability in the first quarters of 2012 and 2011.
For earnings per share after dilution, see page 9. For definitions, see page 19.
For further information, please contact Peter Nyquist, Senior Vice-President, Head of Investor Relations and Financial Information, at +46 8 738 60 03.
| Contents | |
|---|---|
| Market overview | $\mathfrak{p}$ |
| Net sales and income | 2 |
| Business areas | 3 |
| Cash flow | 6 |
| Financial position | 6 |
| Financial statements |
AB ELECTROLUX (PUBL)
Postal address Media hotline Investor Relations E-mail SE-105 45 Stockholm, Sweden +4 8 657 65 07 +46 8 738 60 03 [email protected] Visiting address Telefax Website Reg. No. S:t Göransgatan 143 +46 8 738 74 61 www.electrolux.com 556009-4178
Market overview
Market demand for appliances in Electrolux mature markets declined in the first quarter year-over-year, while demand in emerging markets continued to grow.
Market demand for core appliances in Western Europe declined by 2% and in North America by 9%. Market demand in Australia is estimated to have declined in the quarter.
Market demand in Eastern Europe increased by 5% and demand in Latin America and Southeast Asia continued to show strong growth.
Market demand for appliances in Europe in 2012 is expected to be flat or decline by up to two percent. Market demand for appliances in North America is expected to be flat or increase by up to two percent.
Net sales and income
First quarter of 2012
Net sales for the Electrolux Group in the first quarter of 2012 amounted to SEK 25,875m (23,436), corresponding to an increase of 10.4%.
Change in net sales
| % | Q1 2012 |
|---|---|
| Changes in Group structure (acquisitions) | 5.8 |
| Changes in exchange rates | 1.1 |
| Changes in volume/price/mix (organic growth) | 3.5 |
| Total | 10.4 |
Operating income
Operating income for the first quarter amounted to SEK 943m (696) and income after financial items to SEK 792m (637). Higher sales prices and strong sales growth, particularly in emerging markets as Latin America and Southeast Asia, had a positive impact on operating income for the quarter. The development of the operations in Latin America was especially strong. Higher costs for raw materials continued to impact earnings negatively.
Effects of changes in exchange rates
Changes in exchange rates affected operating income positively with SEK 80m year-over-year. The impact from transaction effects was SEK –5m, results from hedging operations SEK 75m and translation effects SEK 10m.
Share of sales by business area for the first quarter of 2012 Operating income and margin*
1,500 1,200 900 600
SEKm
0
* Excluding items affecting comparability.
EBIT EBIT margin 2011 2012
300 3
Q1
Q1 Q2 Q3 Q4
%
0
Income for the period
Income for the period amounted to SEK 559m (457), corresponding to SEK 1.96 (1.61) in earnings per share.
Business areas
Changes in net sales and operating income by business area in comparable currencies are given on page 13.
Major Appliances Europe, Middle East and Africa
Industry shipments of core appliances in Europe
| Units, year-over-year, % | Q1 2012 | ||
|---|---|---|---|
| Western Europe | –2 | ||
| Eastern Europe (excluding Turkey) | 5 | ||
| Total Europe | –1 | ||
| SEKm | Q1 2012 | Q1 2011 | Full year 2011 |
| Net sales | 8,265 | 7,656 | 34,029 |
|---|---|---|---|
| Operating income | 281 | 311 | 709 |
| Operating margin, % | 3.4 | 4.1 | 2.1 |
Market demand for appliances in Europe declined by 1% in the first quarter year-over-year. The Western European market declined by 2% as a result of continued weak demand in several Southern European markets. Meanwhile, demand in Germany, France and the Nordic countries rose. Demand in Eastern Europe rose by 5%, which was a lower rate of increase compared to earlier quarters, primarily as a result of a slowdown in Russian growth.
Group sales increased year-over-year as a result of higher sales volumes in several main markets and market shares increased primarily in own premium brands and in the built-in segment. The successful launch of AEG products in the Benelux countries, Germany and Austria contributed positively.
Operating income declined in the first quarter year-over-year. Lower sales prices and a negative country mix continued to impact income. Prices were somewhat negatively impacted by sales price reductions ahead of a comprehensive re-launch of the Electrolux brand product range in the second quarter of 2012. The country mix deteriorated as a result of higher sales in Eastern Europe and lower sales in Western Europe. However, an improved product mix made a positive contribution to the operating income.
The contribution from the acquisition of Olympic Group in Egypt in the preceding year was including related acquisition adjustments slightly negative for the quarter.
Major Appliances Europe, Middle East and Africa Industry shipments of core appliances in Europe*
Major Appliances North America
Industry shipments of appliances in the US
| Units, year-over-year, % | Q1 2012 | ||
|---|---|---|---|
| Core appliances | –9 | ||
| Major appliances | –6 | ||
| Full year | |||
| SEKm | Q1 2012 | Q1 2011 | 2011 |
| Net sales | 7,107 | 6,728 | 27,665 |
| Operating income | 159 | –71 | 250 |
Market demand in North America for core appliances declined by 9% during the first quarter of 2012 compared to the corresponding year-earlier period. The decline was across all product categories. Strong demand, rising by 9%, was noted for room air-conditioners due to the fact that retailers anticipated a strong season. Major appliances, including room air-conditioners and microwave ovens, declined by 6% in the quarter.
Group sales in North America increased in the first quarter yearover-year due to higher prices, which offset lower sales volumes of core appliances. Prices were increased in April and August last year as well as in February this year.
Sales volumes of air-conditioners rose during the quarter.
Operating income for the first quarter improved, mainly due to higher sales prices and higher production efficiency. Last year, the move of washing-machine production from Webster City, Iowa, to Juarez in Mexico brought about temporarily higher manufacturing costs. Increased costs for raw materials and sourced products continued to negatively impact operating income.
4 3 2
5
%
0
Q1 Q2
–5
–10
–15
0
-2 -1
1
Major Appliances Latin America
| Full year | |||
|---|---|---|---|
| SEKm | Q1 2012 | Q1 2011 | 2011 |
| Net sales | 5,149 | 3,998 | 17,810 |
| Operating income | 278 | 139 | 820 |
| Operating margin, % | 5.4 | 3.5 | 4.6 |
Market demand for core appliances in Brazil is estimated to have increased in the first quarter of 2012 year-over-year. Demand for core appliances continued to be positively impacted by tax incentives on domestically-produced appliances. This program will continue in the second quarter of 2012. Several other Latin American markets displayed continued favorable growth during the quarter.
The Group's sales rose during the quarter, mainly as a result of higher sales volumes. Sales in other Latin American markets outside Brazil increased to about 30% (15) of total sales, mainly due to the acquisition of CTI in Chile.
Operating income improved significantly, mainly due to the acquisition of CTI but also due to an improved product and customer mix, higher sales volumes and increased production efficiency.
Q2 Q3 Q4
SEKm %
2011 2012
Q1
EBIT EBIT margin
200 150
-100
Q1
Major Appliances North America Industry shipments of core appliances in the US* Major Appliances Latin America
Q3 Q4 Q1
2012
Interim report January – March 2012
Major Appliances Asia/Pacific
| Q1 2012 | Q1 2011 | Full year 2011 |
|---|---|---|
| 1,841 | 1,746 | 7,852 |
| 155 | 174 | 736 |
| 8.4 | 10.0 | 9.4 |
Australia and New Zealand
Market demand for appliances in Australia is estimated to have declined in the first quarter of 2012 year-over-year. Group sales declined during the quarter, primarily as a result of lower sales volumes and continued price pressure in the market. The strong Australian dollar enabled producers that import products to reduce their prices.
Operating income deteriorated year-over-year, mainly as a consequence of reduced sales prices, lower capacity utilization in manufacturing and increased costs for purchased products and transportation.
Southeast Asia and China
Market demand in Southeast Asia is estimated to have continued to show strong growth in the first quarter of 2012 year-over-year. Demand in China declined sharply as a result of the discontinuation of previous government stimuli for appliances at year-end and because sales ahead of the Chinese New Year in January took place already in December 2011. However, Electrolux sales in Southeast Asia and China continued to display strong growth and the Group's market shares are estimated to have grown.
The operations in Southeast Asia continued to demonstrate favorable profitability and the Group's operation in China contributed positively to the income trend.
Higher product development spend due to forthcoming product launches, primarily in the Southeast Asian and Chinese markets, impacted income in the quarter.
Small Appliances
| SEKm | Q1 2012 | Q1 2011 | Full year 2011 |
|---|---|---|---|
| Net sales | 2,105 | 1,930 | 8,359 |
| Operating income | 93 | 114 | 543 |
| Operating margin, % | 4.4 | 5.9 | 6.5 |
Market demand for vacuum cleaners in Europe and North America declined in the first quarter compared to the corresponding yearearlier period.
Group sales increased during the first quarter year-over-year, primarily as a result of an improved product mix and higher sales volumes. Higher sales for the Airspeed vacuum-cleaner range in North America contributed to an increase in market shares. Strong sales growth for cordless handheld vacuum cleaners in most regions had a positive impact on the product mix. Sales volumes of small
Major Appliances Asia/Pacific Small Appliances Professional Products
domestic appliances continued to display growth in all regions during the quarter.
Operating income for the first quarter deteriorated compared to the corresponding period in 2011, primarily as a result of increased costs for materials, lower sales prices and costs for new product launches in Asia during the year. However, higher sales volumes and an improved product mix had a positive impact on operating income.
The 2011 acquisition of CTI's subsidiary Somela in Chile contributed positively to sales and earnings.
Professional Products
| SEKm | Q1 2012 | Q1 2011 | Full year 2011 |
|---|---|---|---|
| Net sales | 1,408 | 1,378 | 5,882 |
| Operating income | 132 | 177 | 841 |
| Operating margin, % | 9.4 | 12.8 | 14.3 |
Market demand in Europe for food-service equipment is estimated to have declined in the first quarter of 2012.
Operating income for food-service equipment was in line with the previous year, adjusted for a one-off asset sale last year of SEK 50m. Price increases contributed positively to income, while lower sales of own-manufactured products and larger investments in new products had a negative impact on operating income.
Market demand for professional laundry equipment during the first quarter is estimated to have declined somewhat in major Electrolux markets in Western Europe and the Group's sales volumes decreased in line with the market trend. However, operating income improved as a result of an improved mix attributable to strong sales in Japan. Furthermore, price increases had a positive impact on income.
Cash flow
Cash flow from operations and investments in the first quarter of 2012 improved to SEK –765m (–1,286). Cash flow is seasonally low in the first quarter.
Compared to the previous year, cash flow was impacted by improvements in operating income and working capital.
The working-capital change in the quarter reflects the seasonal build-up of inventories particularly related to air-conditioners in North America and Latin America. The Group's ongoing structural efforts to reduce tied-up capital have contributed to the favorable development of working capital, see table on page 12.
Payouts for the ongoing restructuring and cost-cutting programs amounted to approximately SEK –140m in the quarter.
Investments during the first quarter referred mainly to investments within manufacturing facilities for new products and production capacity. The major projects are the cooking plant in Memphis, Tennessee, in the US and the new plant for refrigerators and freezers in Rayong, in Thailand for the Southeast Asian markets. The cooking plant in Memphis is receiving investment support from state authorities.
Cash flow
| SEKm | Q1 2012 | Q1 2011 | Full year 2011 |
|---|---|---|---|
| Operations | 1,454 | 1,178 | 6,122 |
| Change in operating assets and liabilities | –492 | –1,288 | 1,116 |
| Capital expenditures | –1,005 | –866 | –4,493 |
| Cash flow from operations | –43 | –976 | 2,745 |
| Acquisitions and divestments of operations | –45 | 105 | –5,556 |
| Financial items paid, net | –102 | –33 | –214 |
| Taxes paid | –575 | –382 | –1,625 |
| Cash flow from operations and | |||
| investments | –765 | –1,286 | –4,650 |
| Dividend | – | – | –1,850 |
| Sale of shares | 212 | – | – |
| Total cash flow, excluding change in | |||
| loans and short-term investments | –553 | –1,286 | –6,500 |
Financial position
Total equity as of March 31, 2012, amounted to SEK 18,879m (18,345), which corresponds to SEK 65.98 (64.44) per share.
Net borrowings
| SEKm | March 31, 2012 | March 31, 2011 | Dec. 31, 2011 |
|---|---|---|---|
| Borrowings | 16,611 | 10,550 | 14,206 |
| Liquid funds | 9,506 | 10,160 | 7,839 |
| Net borrowings | 7,105 | 390 | 6,367 |
| Net debt/equity ratio | 0.38 | 0.02 | 0.31 |
| Equity | 18,879 | 18,345 | 20,644 |
| Equity per share, SEK | 65.98 | 64.44 | 72.52 |
| Return on equity, % | 11.3 | 9.4 | 10.4 |
| Equity/assets ratio, % | 27.7 | 31.1 | 30.1 |
Net borrowings
Net borrowings amounted to SEK 7,105m (390). The net debt/equity ratio was 0.38 (0.02). The equity/assets ratio was 27.7% (31.1).
During the first quarter of 2012, a new bond loan was issued in the amount of SEK 1,000m under the EMTN program.
Long-term borrowings as of March 31, 2012, including longterm borrowings with maturities within 12 months, amounted to SEK 12,624m with average maturities of 2.8 years, compared to SEK 11,669m and 3.0 years at the end of 2011. During 2012 and 2013, long-term borrowings in the amount of approximately SEK 4,100m will mature.
Liquid funds as of March 31, 2012, amounted to SEK 9,506m (10,160), excluding short-term back-up facilities.
Electrolux has two unused committed back-up facilities. One EUR 500m multi-currency revolving credit facility, approximately-SEK 4,400m, maturing 2016 with extension options for up to two more years and a credit facility of SEK 3,400m maturing 2017.
Net assets and working capital
Average net assets for the period amounted to SEK 27,428m (20,245). Net assets as of March 31, 2012, amounted to SEK 27,844m (20,585). Net assets have been impacted by the acquisitions in the second half of 2011 of Olympic Group and CTI. Adjusted for items affecting comparability, i.e., restructuring provisions, average net assets amounted to SEK 28,409m (21,765), corresponding to 27.4% (23.2) of net sales.
Working capital as of March 31, 2012, amounted to SEK –4,362m (–4,398), corresponding to –4.3% (–4.8) of annualized net sales. The return on net assets was 13.0% (13.8), and 12.6% (12.8), excluding items affecting comparability.
Cash flow from operations and investments Cash flow and change in net borrowings
Other items
Stefano Marzano appointed Chief Design Officer
Stefano Marzano was appointed Chief Design Officer, a new role at Electrolux, in January 2012. Stefano Marzano is head of a new Group staff function gathering all the design-related competencies in the Group. This enables Electrolux to increase the relevance and speed of innovative product solutions taken to market.
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. The cases involve plaintiffs who have made identical allegations against other defendants who are not part of the Electrolux Group.
As of March 31, 2012, the Group had a total of 2,741 (2,731) cases pending, representing approximately 2,815 (approximately 2,980) plaintiffs. During the first quarter of 2012, 301 new cases with 264 plaintiffs were filed and 274 pending cases with approximately 292 plaintiffs were resolved.
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.
Annual General Meeting
The Annual General Meeting (AGM) 2012 was held in Stockholm on March 27. Ronnie Leten and Fredrik Persson were elected new Board members and the Board's dividend proposal of SEK 6.50 (6.50) per share was adopted.
Marcus Wallenberg was re-elected Chairman of the Board and at the statutory Board meeting following the AGM, Ronnie Leten was elected Deputy Chairman. For more information about the AGM visit www.electrolux.com/agm2012.
Relocation of production, items affecting comparability, restructuring measures 2007–2013
| Plant closures and cutbacks | Closed | ||
|---|---|---|---|
| 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 |
| Motala | Sweden | Cookers | Q1 2011 |
| Webster City | USA | Washing machines | Q1 2011 |
| Alcalà | Spain | Washing machines | Q1 2011 |
| Authorized closures | Estimated closure | ||
|---|---|---|---|
| L'Assomption | Canada | Cookers | Q4 2013 |
| Investment | Starting | ||
| Porcia | Italy | Washing machines | Q4 2010 |
| Memphis | USA | Cookers | Q2 2012 |
In 2004, Electrolux initiated a restructuring program to make the Group's production competitive in the long term. This program is in its final phase and has so far yielded annual savings of about SEK 3bn. About 35% of manufacturing in high-cost areas have been moved and more than 60% of the Group's household appliances are currently manufactured in low-cost areas that are near rapidly-growing markets for household appliances. In 2011, additional measures were presented to further adapt capacity in mature markets to lower demand. The total cost for the whole program will be approximately SEK 12bn and savings will amount to approximately SEK 5bn annually as of 2016. Restructuring provisions and write-downs are reported as items affecting comparability within operating income.
Risks and uncertainty factors
As an international Group with a wide geographic spread, Electrolux is exposed to a number of business and financial risks. The business risks can be divided into strategic, operational and legal risks. The financial risks are related to such factors as exchange rates, interest rates, liquidity, the giving of credit and financial instruments.
Risk management in Electrolux aims to identify, control and reduce risks. This work begins with the description of risks and risk management, see the 2011 Annual Report on page 70. No significant risks other than the risks described there are judged to have occurred.
Risks, risk management and risk exposure are described in more detail in the Annual Report 2011,
www.electrolux.com/annualreport2011.
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 of the Parent Company, AB Electrolux, for the first quarter in 2012 amounted to SEK 1,493m (1,780) of which SEK 750m (1,024) referred to sales to Group companies and SEK 743m (756) to external customers. Income after financial items was SEK 156m (271), including dividends from subsidiaries in the amount of SEK 18m (0). Income for the period amounted to SEK 104m (210). The Parent Company reports group contributions in the income statement. Corresponding changes have been made in the 2011 financial statements.
Capital expenditure in tangible and intangible assets was SEK 76m (115). Liquid funds at the end of the period amounted to SEK 3,804m, as against SEK 2,206m at the start of the year.
Undistributed earnings in the Parent Company at the end of the period amounted to SEK 14,172m, as against SEK 15,938m at the start of the year. Dividend payment to shareholders for 2011 amounted to SEK 1,860m and is reported as current liability at the end of the period.
The income statement and balance sheet for the Parent Company are presented on page 18.
Stockholm, April 25, 2012
Keith McLoughlin President and CEO
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 2011.
This report has not been audited.
Raw-materials exposure 2011
Carbon steel, 35%
Stainless steel, 8%
Copper and aluminum, 13%
Plastics, 29%
Other, 15%
In 2011, Electrolux purchased raw materials for approximately SEK 20bn. Purchases of steel accounted for the largest cost.
Press releases 2012
| January 10 | Electrolux appoints Stefano Marzano to the new role of Chief Design Officer |
|---|---|
| February 2 | Consolidated results 2011 and CEO Keith McLoughlin's comments |
| February 15 | Ronnie Leten and Fredrik Persson proposed new Board members of Electrolux |
| February 17 | Notice convening the Annual General Meeting of AB Electrolux |
| March 2 | Electrolux Annual Report 2011 is published |
| March 22 | Electrolux issues bond loan |
| March 27 | Bulletin from AB Electrolux Annual General Meeting 2012 |
Consolidated income statement
| SEKm | Q1 2012 | Q1 2011 | Full year 2011 |
|---|---|---|---|
| Net sales | 25,875 | 23,436 | 101,598 |
| Cost of goods sold | –21,047 | –18,990 | –82,840 |
| Gross operating income | 4,828 | 4,446 | 18,758 |
| Selling expenses | –2,616 | –2,549 | –10,821 |
| Administrative expenses | –1,270 | –1,283 | –4,972 |
| Other operating income/expenses | 1 | 82 | 190 |
| Items affecting comparability | – | – | –138 |
| Operating income | 943 | 696 | 3,017 |
| Margin, % | 3.6 | 3.0 | 3.0 |
| Financial items, net | –151 | –59 | –237 |
| Income after financial items | 792 | 637 | 2,780 |
| Margin, % | 3.1 | 2.7 | 2.7 |
| Taxes | –233 | –180 | –716 |
| Income for the period | 559 | 457 | 2,064 |
| Available for sale instruments | –2 | –58 | –91 |
| Cash-flow hedges | 3 | 89 | 111 |
| Exchange-rate differences on translation of foreign operations | –469 | –865 | –223 |
| Income tax relating to other comprehensive income | 2 | –62 | –104 |
| Other comprehensive income, net of tax | –466 | –896 | –307 |
| Total comprehensive income for the period | 93 | –439 | 1,757 |
| Income for the period attributable to: | |||
| Equity holders of the Parent Company | 561 | 457 | 2,064 |
| Non-controlling interests | –2 | – | – |
| Total | 559 | 457 | 2,064 |
| Total comprehensive income for the period attributable to: | |||
| Equity holders of the Parent Company | 99 | –439 | 1,752 |
| Non-controlling interests | –6 | – | 5 |
| Total | 93 | –439 | 1,757 |
| Earnings per share, SEK | 1.96 | 1.61 | 7.25 |
| Diluted, SEK | 1.96 | 1.60 | 7.21 |
| Number of shares after buy-backs, million | 286.1 | 284.7 | 284.7 |
| Average number of shares after buy-backs, million | 285.4 | 284.7 | 284.7 |
| Diluted, million | 286.4 | 286.5 | 286.1 |
Items affecting comparability
| SEKm | Q1 2012 | Q1 2011 | Full year 2011 |
|---|---|---|---|
| Restructuring provisions and write-downs | |||
| Appliances plant in Kinston, USA | – | – | –104 |
| Reduced workforce in Major Appliances, Europe | – | – | –54 |
| Reversal of unused restructuring provisions | – | – | 20 |
| Total | – | – | –138 |
Consolidated balance sheet
| SEKm | March 31, 2012 | March 31, 2011 | Dec. 31, 2011 |
|---|---|---|---|
| Assets | |||
| Property, plant and equipment | 15,874 | 14,038 | 15,613 |
| Goodwill | 5,756 | 2,169 | 6,008 |
| Other intangible assets | 5,040 | 3,311 | 5,146 |
| Investments in associates | 17 | 16 | 18 |
| Deferred tax assets | 3,067 | 2,928 | 2,980 |
| Financial assets | 530 | 525 | 517 |
| Other non-current assets | 3,061 | 2,802 | 3,036 |
| Total non-current assets | 33,345 | 25,789 | 33,318 |
| Inventories | 12,631 | 11,654 | 11,957 |
| Trade receivables | 18,224 | 17,915 | 19,226 |
| Tax assets | 508 | 372 | 666 |
| Derivatives | 241 | 280 | 252 |
| Other current assets | 3,656 | 3,467 | 3,662 |
| Short-term investments | 650 | 1,373 | 337 |
| Cash and cash equivalents | 8,349 | 8,209 | 6,966 |
| Total current assets | 44,259 | 43,270 | 43,066 |
| Total assets | 77,604 | 69,059 | 76,384 |
| 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 | –138 | –258 | 324 |
| Retained earnings | 14,482 | 14,153 | 15,761 |
| Total equity | 18,794 | 18,345 | 20,535 |
| Non controlling interests | 85 | – | 109 |
| Total equity | 18,879 | 18,345 | 20,644 |
| Long-term borrowings | 10,604 | 8,246 | 9,639 |
| Deferred tax liabilities | 1,139 | 806 | 1,127 |
| Provisions for post-employment benefits | 2,128 | 2,232 | 2,111 |
| Other provisions | 5,161 | 5,184 | 5,300 |
| Total non-current liabilities | 19,032 | 16,468 | 18,177 |
| Accounts payable | 18,161 | 16,513 | 18,490 |
| Tax liabilities | 1,499 | 1,794 | 1,717 |
| Dividend payable | 1,860 | 1,850 | – |
| Short-term liabilities | 10,080 | 9,980 | 10,497 |
| Short-term borrowings | 5,603 | 1,873 | 4,170 |
| Derivatives | 274 | 334 | 324 |
| Other provisions | 2,216 | 1,902 | 2,365 |
| Total current liabilities | 39,693 | 34,246 | 37,563 |
| Total equity and liabilities | 77,604 | 69,059 | 76,384 |
| Contingent liabilities | 1,513 | 1,186 | 1,276 |
Shares
| Number of shares | Outstanding A-shares |
Outstanding B-shares |
Outstanding shares, total |
Shares held by Electrolux |
Shares held by other shareholders |
|---|---|---|---|---|---|
| Number of shares as of January 1, 2012 | 8,212,725 | 300,707,583 | 308,920,308 | 24,255,085 | 284,665,223 |
| Conversion of A-shares into B-shares | – | – | – | – | – |
| Sale of shares | – | – | – | –1,469,595 | 1,469,595 |
| Number of shares as of March 31, 2012 | 8,212,725 | 300,707,583 | 308,920,308 | 22,785,490 | 286,134,818 |
| As % of total number of shares | 7.4% |
Consolidated cash flow statement
| SEKm | Q1 2012 | Q1 2011 | Full year 2011 |
|---|---|---|---|
| Operations | |||
| Operating income | 943 | 696 | 3,017 |
| Depreciation and amortization | 820 | 761 | 3,173 |
| Capital gain/loss included in operating income | – | –79 | –207 |
| Restructuring provisions | –143 | –221 | 110 |
| Share-based compensation | –166 | 21 | 29 |
| Financial items paid, net | –102 | –33 | –214 |
| Taxes paid | –575 | –382 | –1,625 |
| Cash flow from operations, excluding change | |||
| in operating assets and liabilities | 777 | 763 | 4,283 |
| Change in operating assets and liabilities | |||
| Change in inventories | –908 | –1,076 | 269 |
| Change in trade receivables | 860 | 625 | 244 |
| Change in other current assets | –17 | 9 | 200 |
| Change in accounts payable | –90 | –106 | 1,379 |
| Change in other operating liabilities and provisions | –337 | –740 | –976 |
| Cash flow from change in operating assets | |||
| and liabilities | –492 | –1,288 | 1,116 |
| Cash flow from operations | 285 | –525 | 5,399 |
| Investments | |||
| Acquisition of operations | –45 | – | –6,377 |
| Divestment of operations | – | 105 | 821 |
| Capital expenditure in property, plant and equipment | –784 | –540 | –3,163 |
| Capital expenditure in product development | –93 | –74 | –374 |
| Capital expenditure in software | –131 | –164 | –744 |
| Other1) | 3 | –88 | –212 |
| Cash flow from investments | –1,050 | –761 | –10,049 |
| Cash flow from operations and investments | –765 | –1,286 | –4,650 |
| Financing | |||
| Change in short-term investments | –315 | 315 | 1,444 |
| Change in short-term borrowings | 1,316 | –235 | –619 |
| New long-term borrowings | 1,000 | – | 3,503 |
| Amortization of long-term borrowings | –7 | –698 | –1,161 |
| Dividend | – | – | –1,850 |
| Sale of shares | 212 | – | – |
| Cash flow from financing | 2,206 | –618 | 1,317 |
| Total cash flow | 1,441 | –1,904 | –3,333 |
| Cash and cash equivalents at beginning of period | 6,966 | 10,389 | 10,389 |
| Exchange-rate differences referring to cash and cash equivalents | –58 | –276 | –90 |
| Cash and cash equivalents at end of period | 8,349 | 8,209 | 6,966 |
1) Includes grants related to investments of SEK 54m in 2012.
Change in consolidated equity
| SEKm | March 31, 2012 | March 31, 2011 | Dec. 31, 2011 |
|---|---|---|---|
| Opening balance | 20,644 | 20,613 | 20,613 |
| Total comprehensive income for the period | 93 | –439 | 1,757 |
| Share-based payment | –166 | 21 | 29 |
| Sale of shares | 212 | – | – |
| Dividend | –1,860 | –1,850 | –1,850 |
| Dividend to non-controlling interests | – | – | –1 |
| Acquisition of operations | –44 | – | 96 |
| Total transactions with equity holders | –1,858 | –1,829 | –1,726 |
| Closing balance | 18,879 | 18,345 | 20,644 |
Working capital and net assets
| % of annualized | % of annualized | % of annualized | ||||
|---|---|---|---|---|---|---|
| SEKm | March 31, 2012 | net sales | March 31, 2011 | net sales | Dec. 31, 2011 | net sales |
| Inventories | 12,631 | 12.4 | 11,654 | 12.6 | 11,957 | 10.5 |
| Trade receivables | 18,224 | 17.8 | 17,915 | 19.4 | 19,226 | 17.0 |
| Accounts payable | –18,161 | –17.8 | –16,513 | –17.9 | –18,490 | –16.3 |
| Provisions | –9,505 | – | –9,318 | – | –9,776 | – |
| Prepaid and accrued income and expenses | –6,256 | – | –6,217 | – | –6,598 | – |
| Taxes and other assets and liabilities | –1,295 | – | –1,919 | – | –1,499 | – |
| Working capital | –4,362 | –4.3 | –4,398 | –4.8 | –5,180 | –4.6 |
| Property, plant and equipment | 15,874 | – | 14,038 | – | 15,613 | – |
| Goodwill | 5,756 | – | 2,169 | – | 6,008 | – |
| Other non-current assets | 8,648 | – | 6,654 | – | 8,717 | – |
| Deferred tax assets and liabilities | 1,928 | – | 2,122 | – | 1,853 | – |
| Net assets | 27,844 | 27.2 | 20,585 | 22.3 | 27,011 | 23.8 |
| Average net assets | 27,428 | 26.5 | 20,245 | 21.6 | 22,091 | 21.7 |
| Average net assets, excluding items | ||||||
| affecting comparability | 28,409 | 27.4 | 21,765 | 23.2 | 23,354 | 23.0 |
Key ratios
| Q1 2012 | Q1 2011 | Full year 2011 |
|
|---|---|---|---|
| Net sales, SEKm | 25,875 | 23,436 | 101,598 |
| Operating income, SEKm | 943 | 696 | 3,017 |
| Margin, % | 3.6 | 3.0 | 3.0 |
| EBITDA, SEKm | 1,763 | 1,457 | 6,190 |
| Earnings per share, SEK¹) | 1.96 | 1.61 | 7.25 |
| Return on net assets, % | 13.0 | 13.8 | 13.7 |
| Return on equity, % | 11.3 | 9.4 | 10.4 |
| Capital-turnover rate, times/year | 3.6 | 4.6 | 4.6 |
| Equity per share, SEK | 65.98 | 64.44 | 72.52 |
| Cash flow from operations, SEKm | 285 | –525 | 5,399 |
| Capital expenditure, SEKm | –784 | –540 | –3,163 |
| Net borrowings, SEKm | 7,105 | 390 | 6,367 |
| Net debt/equity ratio | 0.38 | 0.02 | 0.31 |
| Equity/assets ratio, % | 27.7 | 31.1 | 30.1 |
| Average number of employees | 58,166 | 50,665 | 52,916 |
| Excluding items affecting comparability | |||
| Operating income, SEKm | 943 | 696 | 3,155 |
| Margin, % | 3.6 | 3.0 | 3.1 |
| EBITDA, SEKm | 1,763 | 1,457 | 6,328 |
| Earnings per share, SEK¹) | 1.96 | 1.61 | 7.55 |
| Return on net assets, % | 12.6 | 12.8 | 13.5 |
| Capital-turnover rate, times/year | 3.5 | 4.3 | 4.3 |
1) Basic, based on average number of shares, excluding shares owned by Electrolux, see page 9.
For definitions, see page 19.
Net sales by business area
| SEKm | Q1 2012 | Q1 2011 | Full year 2011 |
|---|---|---|---|
| Major Appliances Europe, Middle East and Africa | 8,265 | 7,656 | 34,029 |
| Major Appliances North America | 7,107 | 6,728 | 27,665 |
| Major Appliances Latin America | 5,149 | 3,998 | 17,810 |
| Major Appliances Asia/Pacific | 1,841 | 1,746 | 7,852 |
| Small Appliances | 2,105 | 1,930 | 8,359 |
| Professional Products | 1,408 | 1,378 | 5,882 |
| Other | – | – | 1 |
| Total | 25,875 | 23,436 | 101,598 |
Operating income by business area
| SEKm | Q1 2012 | Q1 2011 | Full year 2011 |
|---|---|---|---|
| Major Appliances Europe, Middle East and Africa | 281 | 311 | 709 |
| Margin, % | 3.4 | 4.1 | 2.1 |
| Major Appliances North America | 159 | –71 | 250 |
| Margin, % | 2.2 | –1.1 | 0.9 |
| Major Appliances Latin America | 278 | 139 | 820 |
| Margin, % | 5.4 | 3.5 | 4.6 |
| Major Appliances Asia/Pacific | 155 | 174 | 736 |
| Margin, % | 8.4 | 10.0 | 9.4 |
| Small Appliances | 93 | 114 | 543 |
| Margin, % | 4.4 | 5.9 | 6.5 |
| Professional Products | 132 | 177 | 841 |
| Margin, % | 9.4 | 12.8 | 14.3 |
| Total business areas | 1,098 | 844 | 3,899 |
| Margin, % | 4.2 | 3.6 | 3.8 |
| Common Group costs, etc. | –155 | –148 | –744 |
| Items affecting comparability | – | – | –138 |
| Operating income | 943 | 696 | 3,017 |
Change in net sales by business area
| Year-over-year, % | Q1 2012 | Q1 2012 in comparable currencies |
|---|---|---|
| Major Appliances Europe, Middle East and Africa | 8.0 | 7.8 |
| Major Appliances North America | 5.6 | 2.4 |
| Major Appliances Latin America | 28.8 | 32.8 |
| Major Appliances Asia/Pacific | 5.4 | –0.8 |
| Small Appliances | 9.1 | 7.7 |
| Professional Products | 2.2 | 1.4 |
| Total change | 10.4 | 9.3 |
Change in operating income by business area
| Year-over-year, % | Q1 2012 | Q1 2012 in comparable currencies |
|---|---|---|
| Major Appliances Europe, Middle East and Africa | –9.6 | –7.4 |
| Major Appliances North America | 323.9 | 326.2 |
| Major Appliances Latin America | 100.0 | 98.1 |
| Major Appliances Asia/Pacific | –10.9 | –19.8 |
| Small Appliances | –18.4 | –17.3 |
| Professional Products | –25.4 | –25.9 |
| Total change, excluding items affecting comparability | 35.5 | 33.3 |
Exchange rates
| SEK | March 31, 2012 | March 31, 2011 | Dec. 31, 2011 |
|---|---|---|---|
| AUD, average | 7.05 | 6.58 | 6.72 |
| AUD, end of period | 6.89 | 6.49 | 7.02 |
| BRL, average | 3.76 | 3.91 | 3.88 |
| BRL, end of period | 3.63 | 3.85 | 3.68 |
| CAD, average | 6.70 | 6.57 | 6.55 |
| CAD, end of period | 6.64 | 6.47 | 6.77 |
| EUR, average | 8.87 | 8.90 | 9.02 |
| EUR, end of period | 8.83 | 8.92 | 8.93 |
| GBP, average | 10.59 | 10.32 | 10.36 |
| GBP, end of period | 10.60 | 10.12 | 10.65 |
| HUF, average | 0.0299 | 0.0326 | 0.0322 |
| HUF, end of period | 0.0300 | 0.0335 | 0.0287 |
| USD, average | 6.70 | 6.48 | 6.48 |
| USD, end of period | 6.62 | 6.28 | 6.90 |
Net sales and income per quarter
| SEKm | Q1 | Q2 | Q3 | Q4 | Full year | |
|---|---|---|---|---|---|---|
| Net sales | 2012 | 25,875 | 25,875 | |||
| 2011 | 23,436 | 24,143 | 25,650 | 28,369 | 101,598 | |
| Operating income | 2012 | 943 | 943 | |||
| Margin, % | 3.6 | 3.6 | ||||
| 2012¹) | 943 | 943 | ||||
| Margin, % | 3.6 | 3.6 | ||||
| 2011 | 696 | 745 | 1,064 | 512 | 3,017 | |
| Margin, % | 3.0 | 3.1 | 4.1 | 1.8 | 3.0 | |
| 2011¹) | 696 | 745 | 1,098 | 616 | 3,155 | |
| Margin, % | 3.0 | 3.1 | 4.3 | 2.2 | 3.1 | |
| Income after financial items | 2012 | 792 | 792 | |||
| Margin, % | 3.1 | 3.1 | ||||
| 2012¹) | 792 | 792 | ||||
| Margin, % | 3.1 | 3.1 | ||||
| 2011 | 637 | 696 | 1,119 | 328 | 2,780 | |
| Margin, % | 2.7 | 2.9 | 4.4 | 1.2 | 2.7 | |
| 2011¹) | 637 | 696 | 1,153 | 432 | 2,918 | |
| Margin, % | 2.7 | 2.9 | 4.5 | 1.5 | 2.9 | |
| Income for the period | 2012 | 559 | 559 | |||
| 2011 | 457 | 561 | 825 | 221 | 2,064 | |
| Earnings per share, SEK ²) | 2012 | 1.96 | 1.96 | |||
| 2012¹) | 1.96 | 1.96 | ||||
| 2011 | 1.61 | 1.97 | 2.90 | 0.77 | 7.25 | |
| 2011¹) | 1.61 | 1.97 | 2.96 | 1.01 | 7.55 |
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 | 2012 | 286.1 | 286.1 | |||
|---|---|---|---|---|---|---|
| 2011 | 284.7 | 284.7 | 284.7 | 284.7 | 284.7 | |
| Average number of shares after buy– | ||||||
| backs, million | 2012 | 285.4 | 285.4 | |||
| 2011 | 284.7 | 284.7 | 284.7 | 284.7 | 284.7 | |
| Items affecting comparability | ||||||
| Restructuring provisions, write–downs and | ||||||
| capital loss on divestment, SEKm | 2012 | – | ||||
| 2011 | – | – | –34 | –104 | –138 |
Net sales by business area per quarter
| SEKm | Q1 | Q2 | Q3 | Q4 | Full year | |
|---|---|---|---|---|---|---|
| Major Appliances Europe, Middle East and Africa | 2012 | 8,265 | 8,265 | |||
| 2011 | 7,656 | 7,660 | 8,964 | 9,749 | 34,029 | |
| 2010 | 8,921 | 8,603 | 9,395 | 9,677 | 36,596 | |
| Major Appliances North America | 2012 | 7,107 | 7,107 | |||
| 2011 | 6,728 | 7,544 | 7,122 | 6,271 | 27,665 | |
| 2010 | 7,305 | 9,308 | 7,604 | 6,752 | 30,969 | |
| Major Appliances Latin America | 2012 | 5,149 | 5,149 | |||
| 2011 | 3,998 | 3,708 | 4,101 | 6,003 | 17,810 | |
| 2010 | 3,796 | 3,667 | 3,810 | 4,987 | 16,260 | |
| Major Appliances Asia/Pacific | 2012 | 1,841 | 1,841 | |||
| 2011 | 1,746 | 1,945 | 1,981 | 2,180 | 7,852 | |
| 2010 | 1,666 | 2,035 | 1,909 | 2,069 | 7,679 | |
| Small Appliances | 2012 | 2,105 | 2,105 | |||
| 2011 | 1,930 | 1,794 | 2,056 | 2,579 | 8,359 | |
| 2010 | 1,936 | 1,966 | 2,106 | 2,414 | 8,422 | |
| Professional Products | 2012 | 1,408 | 1,408 | |||
| 2011 | 1,378 | 1,491 | 1,426 | 1,587 | 5,882 | |
| 2010 | 1,501 | 1,730 | 1,501 | 1,657 | 6,389 | |
Operating income by business area per quarter
| SEKm | Q1 | Q2 | Q3 | Q4 | Full year | |
|---|---|---|---|---|---|---|
| Major Appliances Europe, Middle East and Africa | 2012 | 281 | 281 | |||
| Margin, % | 3.4 | 3.4 | ||||
| 2011 | 311 | 156 | 444 | –202 | 709 | |
| Margin, % | 4.1 | 2.0 | 5.0 | –2.1 | 2.1 | |
| 2010 | 499 | 453 | 898 | 447 | 2,297 | |
| Margin, % | 5.6 | 5.3 | 9.6 | 4.6 | 6.3 | |
| Major Appliances North America | 2012 | 159 | 159 | |||
| Margin, % | 2.2 | 2.2 | ||||
| 2011 | –71 | 138 | 107 | 76 | 250 | |
| Margin, % | –1.1 | 1.8 | 1.5 | 1.2 | 0.9 | |
| 2010 | 299 | 439 | 413 | 291 | 1,442 | |
| Margin, % | 4.1 | 4.7 | 5.4 | 4.3 | 4.7 | |
| Major Appliances Latin America | 2012 | 278 | 278 | |||
| Margin, % | 5.4 | 5.4 | ||||
| 2011 | 139 | 114 | 222 | 345 | 820 | |
| Margin, % | 3.5 | 3.1 | 5.4 | 5.7 | 4.6 | |
| 2010 | 206 | 209 | 199 | 337 | 951 | |
| Margin, % | 5.4 | 5.7 | 5.2 | 6.8 | 5.8 | |
| Major Appliances Asia/Pacific | 2012 | 155 | 155 | |||
| Margin, % | 8.4 | 8.4 | ||||
| 2011 | 174 | 177 | 172 | 213 | 736 | |
| Margin, % | 10.0 | 9.1 | 8.7 | 9.8 | 9.4 | |
| 2010 | 145 | 207 | 241 | 200 | 793 | |
| Margin, % | 8.7 | 10.2 | 12.6 | 9.7 | 10.3 | |
| Small Appliances | 2012 | 93 | 93 | |||
| Margin, % | 4.4 | 4.4 | ||||
| 2011 | 114 | 23 | 169 | 237 | 543 | |
| Margin, % | 5.9 | 1.3 | 8.2 | 9.2 | 6.5 | |
| 2010 | 211 | 122 | 198 | 271 | 802 | |
| Margin, % | 10.9 | 6.2 | 9.4 | 11.2 | 9.5 | |
| Professional Products | 2012 | 132 | 132 | |||
| Margin, % | 9.4 | 9.4 | ||||
| 2011 | 177 | 274 | 199 | 191 | 841 | |
| Margin, % | 12.8 | 18.4 | 14.0 | 12.0 | 14.3 | |
| 2010 | 91 | 207 | 202 | 243 | 743 | |
| Margin, % | 6.1 | 12.0 | 13.5 | 14.7 | 11.6 | |
| Common Group costs, etc. | 2012 | –155 | –155 | |||
| 2011 | –148 | –137 | –215 | –244 | –744 | |
| 2010 | –125 | –160 | –174 | –75 | –534 | |
| Items affecting comparability | 2012 | – | – | |||
| 2011 | – | – | –34 | –104 | –138 | |
| 2010 | –95 | –207 | – | –762 | –1,064 |
Net assets by business area
| Assets | Equity and liabilities | Net assets | |||||||
|---|---|---|---|---|---|---|---|---|---|
| SEKm | March. 31, 2012 |
March 31, 2011 |
Dec. 31, 2011 |
March 31, 2012 |
March 31, 2011 |
Dec. 31, 2011 |
March 31, 2012 |
March 31, 2011 |
Dec. 31, 2011 |
| Major Appliances Europe, | |||||||||
| Middle East and Africa | 22,636 | 20,482 | 24,297 | 13,621 | 13,006 | 14,847 | 9,015 | 7,476 | 9,450 |
| Major Appliances North America | 12,077 | 11,626 | 10,391 | 6,478 | 5,399 | 5,075 | 5,599 | 6,227 | 5,316 |
| Major Appliances Latin America | 13,993 | 9,224 | 14,075 | 6,884 | 6,249 | 6,607 | 7,109 | 2,975 | 7,468 |
| Major Appliances Asia/Pacific | 4,543 | 4,099 | 4,630 | 2,417 | 2,236 | 2,590 | 2,126 | 1,863 | 2,040 |
| Small Appliances | 4,282 | 3,740 | 4,792 | 2,238 | 2,089 | 2,582 | 2,044 | 1,651 | 2,210 |
| Professional Products | 2,805 | 2,734 | 2,829 | 1,948 | 1,879 | 1,897 | 857 | 855 | 932 |
| Other1) | 7,661 | 7,019 | 7,414 | 5,611 | 6,078 | 6,816 | 2,050 | 941 | 598 |
| Items affecting comparability | 101 | –25 | 117 | 1,057 | 1,378 | 1,120 | –956 | –1,403 | –1,003 |
| Total operating assets and | |||||||||
| liabilities | 68,098 | 58,899 | 68,545 | 40,254 | 38,314 | 41,534 | 27,844 | 20,585 | 27,011 |
| Liquid funds | 9,506 | 10,160 | 7,839 | – | – | – | – | – | – |
| Interest-bearing receivables | – | – | – | – | – | – | – | – | – |
| Interest-bearing liabilities | – | – | – | 16,611 | 10,550 | 14,206 | – | – | – |
| Dividend payable | – | 1,860 | 1,850 | – | – | – | – | ||
| Equity | – | – | – | 18,879 | 18,345 | 20,644 | – | – | – |
| Total | 77,604 | 69,059 | 76,384 | 77,604 | 69,059 | 76,384 | – | – | – |
1) Includes common Group functions and tax items.
Acquisitions 20111)
Consideration
| SEKm | Olympic Group | CTI | Total |
|---|---|---|---|
| Cash paid | 2,556 | 3,804 | 6,360 |
| Total | 2,556 | 3,804 | 6,360 |
Recognized amounts of identifiable assets acquired and liabilities
assumed at fair value
SEKm
| 2,556 | 3,804 | 6,360 |
|---|---|---|
| 3,599 | ||
| –69 | –41 | –110 |
| –689 | –385 | –1,074 |
| –723 | –499 | –1,222 |
| 34 | 114 | 148 |
| 1,819 | 2,126 | 3,945 |
| 537 | – | 537 |
| –574 | –886 | –1,460 |
| –223 | –189 | –412 |
| 236 | 310 | 546 |
| 195 | 763 | 958 |
| 577 | 734 | 1,311 |
| 516 | 1,012 | 1,528 |
| 555 | 382 | 937 |
| 1,495 | 2,104 |
1) Olympic Group and CTI are included in Electrolux consolidated accounts as of September and October 2011, respectively.
CTI group
In Chile, CTI group manufactures refrigerators, stoves, washing machines and heaters, sold under the brands Fensa and Mademsa, and is the leading manufacturer with a volume market share of 36%. CTI group also holds a leading position in Argentina with the GAFA brand and in Chile, Somela is the largest supplier of small domestic appliances. CTI group has 2,200 employees and two manufacturing sites in Chile and one site in Argentina. This acquisition is part of Electrolux strategy to grow in emerging markets and provides significant revenue and growth synergies. The acquisition makes Electrolux the largest supplier of appliances in Chile and Argentina, and further enhances Electrolux position as a leading appliance company in the fast-growing Latin American markets.
CTI's and Somela's shares are listed on the Santiago Stock Exchange in Chile. CTI group's net sales and operating income are not disclosed, as its financial statements have not yet been published.
Olympic Group
Olympic Group is a leading manufacturer of appliances in the Middle East with a volume market share in Egypt of approximately 30%. The company has 7,100 employees and manufactures washing machines, refrigerators, cookers and water heaters. The acquisition is part of Electrolux strategy to grow in emerging markets like Middle East and Africa. Electrolux and Olympic Group have developed a successful commercial partnership in the region for almost 30 years, which today covers technology, supply of components, distribution and brand licensing.
Olympic Group's shares are listed on the Egyptian Stock Exchange. Olympic Group's net sales and operating income are not disclosed, as its financial statements have not yet been published.
Operations, by business area*
| SEKm | 2011 | 2010 | 2009 | 2008 | 2007 |
|---|---|---|---|---|---|
| Major Appliances Europe, Middle East and Africa | |||||
| Net sales | 34,029 | 36,596 | 40,500 | 42,952 | 44,015 |
| Operating income | 709 | 2,297 | 1,912 | –303 | 1,861 |
| Margin, % | 2.1 | 6.3 | 4.7 | –0.7 | 4.2 |
| Major Appliances North America | |||||
| Net sales | 27,665 | 30,969 | 32,694 | 29,836 | 30,412 |
| Operating income | 250 | 1,442 | 1,299 | 85 | 1,489 |
| Margin, % | 0.9 | 4.7 | 4.0 | 0.3 | 4.9 |
| Major Appliances Latin America | |||||
| Net sales | 17,810 | 16,260 | 13,302 | 10,485 | 8,794 |
| Operating income | 820 | 951 | 809 | 645 | 462 |
| Margin, % | 4.6 | 5.8 | 6.1 | 6.2 | 5.3 |
| Major Appliances Asia/Pacific | |||||
| Net sales | 7,852 | 7,679 | 7,037 | 6,049 | 6,080 |
| Operating income | 736 | 793 | 378 | 93 | 63 |
| Margin, % | 9.4 | 10.3 | 5.4 | 1.5 | 1.0 |
| Small Appliances Net sales |
8,359 | 8,422 | 8,464 | 7,987 | 8,309 |
| Operating income | 543 | 802 | 763 | 764 | 747 |
| Margin, % | 6.5 | 9.5 | 9.0 | 9.6 | 9.0 |
| Professional Products | |||||
| Net sales | 5,882 | 6,389 | 7,129 | 7,427 | 7,102 |
| Operating income | 841 | 743 | 668 | 774 | 584 |
| Margin, % | 14.3 | 11.6 | 9.4 | 10.4 | 8.2 |
| Other | |||||
| Net sales | 1 | 11 | 6 | 56 | 20 |
| Operating income, common Group costs, etc. | –744 | –534 | –507 | –515 | –369 |
| Total Group, excluding items affecting comparability | |||||
| Net sales | 101,598 | 106,326 | 109,132 | 104,792 | 104,732 |
| Operating income | 3,155 | 6,494 | 5,322 | 1,543 | 4,837 |
| Margin, % | 3.1 | 6.1 | 4.9 | 1.5 | 4.6 |
| Items affecting comparability | –138 | –1,064 | –1,561 | –355 | –362 |
| Total Group, including items affecting comparability | |||||
| Net sales | 101,598 | 106,326 | 109,132 | 104,792 | 104,732 |
| Operating income | 3,017 | 5,430 | 3,761 | 1,188 | 4,475 |
| Margin, % | 3.0 | 5.1 | 3.4 | 1.1 | 4.3 |
* As of the first quarter of 2011, the Group's operations for floor-care products and small domestic appliances are reported as an own global business area. These operations have previously been reported within each regional business area within consumer durables. The new business area name is Small Appliances. Other business areas within consumer durables have changed their names to Major Appliances.
Parent Company, income statement
| SEKm | Q1 2012 | Q1 2011 | Full year 2011 |
|---|---|---|---|
| Net sales | 1,493 | 1,780 | 6,660 |
| Cost of goods sold | –1,133 | –1,288 | –5,023 |
| Gross operating income | 360 | 492 | 1,637 |
| Selling expenses | –289 | –273 | –1,109 |
| Administrative expenses | –38 | –147 | –295 |
| Other operating income | 86 | 98 | 298 |
| Other operating expenses | – | – | –10 |
| Operating income | 119 | 170 | 521 |
| Financial income | 176 | 133 | 2,727 |
| Financial expenses | –139 | –32 | –344 |
| Financial items, net | 37 | 101 | 2,383 |
| Income after financial items | 156 | 271 | 2,904 |
| Appropriations | 5 | 8 | 32 |
| Income before taxes | 161 | 279 | 2,936 |
| Taxes | –57 | –69 | –191 |
| Income for the period | 104 | 210 | 2,745 |
Parent Company, balance sheet
| SEKm | March 31, 2012 | March 31, 2011 | Dec. 31, 2011 |
|---|---|---|---|
| Assets | |||
| Non-current assets | 33,470 | 28,263 | 33,247 |
| Current assets | 17,180 | 18,115 | 14,833 |
| Total assets | 50,650 | 46,378 | 48,080 |
| Equity and liabilities | |||
| Restricted equity | 4,562 | 4,562 | 4,562 |
| Non-restricted equity | 14,172 | 13,420 | 15,938 |
| Total equity | 18,734 | 17,982 | 20,500 |
| Untaxed reserves | 592 | 621 | 597 |
| Provisions | 873 | 613 | 732 |
| Non-current liabilities | 10,177 | 7,692 | 9,220 |
| Current liabilities | 20,274 | 19,470 | 17,031 |
| Total equity and liabilities | 50,650 | 46,378 | 48,080 |
| Pledged assets | 5 | 5 | 5 |
| Contingent liabilities | 1,436 | 1,596 | 1,428 |
Five-year review
| 2011 | 2010 | 2009 | 2008 | 2007 | |
|---|---|---|---|---|---|
| Net sales, SEKm | 101,598 | 106,326 | 109,132 | 104,792 | 104,732 |
| Operating income, SEKm | 3,017 | 5,430 | 3,761 | 1,188 | 4,475 |
| Margin, % | 3.0 | 5.1 | 3.4 | 1.1 | 4.3 |
| Margin, excluding items affecting | |||||
| comparability, % | 3.1 | 6.1 | 4.9 | 1.5 | 4.6 |
| Income after financial items, SEKm | 2,780 | 5,306 | 3,484 | 653 | 4,035 |
| Margin, % | 2.7 | 5.0 | 3.2 | 0.6 | 3.9 |
| Margin, excluding items | |||||
| affecting comparability, % | 2.9 | 6.0 | 4.6 | 1.0 | 4.2 |
| Income for the period, SEKm | 2,064 | 3,997 | 2,607 | 366 | 2,925 |
| Earnings per share, SEK | 7.25 | 14.04 | 9.18 | 1.29 | 10.41 |
| Average number of shares after | |||||
| buy-backs, million | 284.7 | 284.6 | 284.0 | 283.1 | 281.0 |
| Dividend, SEK | 6.50 | 6.50 | 4.00 | – | 4.25 |
| Return on equity, % | 10.4 | 20.6 | 14.9 | 2.4 | 20.3 |
| Return on net assets, % | 13.7 | 27.8 | 19.4 | 5.8 | 21.7 |
| Net debt/equity ratio | 0.31 | –0.03 | 0.04 | 0.28 | 0.29 |
| Capital expenditure, SEKm | 3,163 | 3,221 | 2,223 | 3,158 | 3,430 |
| Average number of employees | 52,916 | 51,544 | 50,633 | 55,177 | 56,898 |
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.
Capital turnover rate
Net sales in relation to average net assets.
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 Keith McLoughlin's comments on the firstquarter results 2012
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 April 25, 2012. The conference is chaired by Keith McLoughlin, President and CEO of Electrolux. Mr. McLoughlin is accompanied by Tomas Eliasson, CFO, and Peter Nyquist, SVP Investor Relations and Financial Information.
A slide presentation on the first-quarter results of 2012 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 www.electrolux.com/webcast1
For further information
Peter Nyquist, Senior Vice President, 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 2012
Financial reports 2012 Interim report January – June July 19 Interim report January – September October 22
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 April 25, 2012.