In accordance with the Group’s strategy, Electrolux has implemented a dynamic transformation of its floor-care operations as well as operations in Latin America, Australia and Southeast Asia, and in Professional Products. A number of these changes and the results they generated are described in the annual reports for 2006–2010.
Return on net asset in the floor-care operation
The market for floor-care products underwent rapid changes at the end of the 1990s. Severe competition and low profitability generated intensive pressure for change. This led to a vigorous transformation of the Group’s operations. This operation has demonstrated highly favorable development since the transformation.
Rapid organic growth in Brazil
Electrolux entered the Brazilian appliance market in 1996 by acquiring Refripar, one of the largest appliance producers in the country. Refripar’s products were positioned in the low-price segment, and the company had high production costs. Today, Electrolux is one of the leading appliance brands in Brazil, with a high rate of growth and favorable profitability.
Net sales and operating margin in Asia/Pacific
In Australia, the Group has turned around an unprofitable appliances business acquired in 2001 by focusing on new products in the high-price segments, building the Electrolux brand and by restructuring and improving efficiency within production.
Net sales and operating margin, Professional Products
2010. Transformation of Professional Products.
This year, the annual report contains a description of the transformation of Professional Products. Read more
A high pace of innovation, and improved cost efficiency, combined with a global premium brand and a global service network, generated a record-high operating margin for Professional Products.