Electrolux Annual Report 2011
Quick reading

2011 Summary

  • Net sales increased by 1.9% in comparable currencies.
  • Strong growth in emerging markets as Latin America and Asia offset lower sales in Europe and North America. Electrolux market shares are estimated to have grown in Southeast Asia and Latin America.
  • Through the acquisitions of the appliances companies Olympic Group in Egypt and CTI in Chile, Electrolux increases its exposure to growth markets.
  • Lower sales prices and increased costs for raw materials had an adverse impact on operating income.
  • Efforts to reduce working capital contributed to a solid balance sheet.
  • The Board proposes an unchanged dividend of SEK 6.50 per share and a renewed mandate to repurchase own shares.


Electrolux is a global leader in household appliances and appliances for professional use, selling more than 40 million products to customers in more than 150 markets every year.

The company focuses on innovative solutions that are thoughtfully designed, based on extensive consumer insight, to meet the real needs of consumers and professionals.

Electrolux products include refrigerators, dishwashers, washing machines, cookers, air-conditioners and small appliances such as vacuum cleaners sold under esteemed brands like Electrolux, AEG, Eureka and Frigidaire.

In 2011 Electrolux had sales of SEK 102 billion and 58,000 employees.

Built-in kitchen appliances are becoming increasingly common throughout the world and Electrolux is a leading global player in the segment.

Inspiration Range

The Inspiration Range is the new, full range of consumer appliances from Electrolux spanning all categories and will be launched under the Electrolux brand in Europe during 2012. The appliances are based on new, high-end platforms, offering features and functions built on the Group’s know-how and expertise in professional products, matched with a modern and distinctive design.

Electrolux markets

Over the past decade, Electrolux has made the transformation into an innovative, consumer-focused company. Now growth is becoming more important. From previously having been heavily exposed to mature markets, the share of sales in growth markets, such as Africa, the Middle East, Asia and Latin America, is to increase rapidly. The acquisition of appliances manufacturers CTI in Chile and Olympic Group in Egypt combined with strong organic growth has boosted the share of Electrolux pro forma sales in growth markets from 25% in 2009 to 35% in 2011.

Electrolux net sales per market, %

Electrolux strategy

Electrolux is the most global manufacturer in the appliances sector, commanding strong positions in all regions. Electrolux is also the only player that offers solutions for both consumers and professional users. All product development in the Group is based on consumer insight. With innovative products under a strong brand in the premium segment and by leveraging the Group’s global strength and scope, Electrolux aims to create a platform for profitable growth.


Electrolux is committed to growth that’s sustainable – delivering long-term value to customers, employees, shareholders and the wider world.
Progress in realizing the strategy, includes:

  • Achieving - and exceeding - our energy reduction target in operations, saving more than SEK 300m in energy costs a year
  •  In Health & Safety, Electrolux realized a group-wide reduction of 42% in the accident rate;
  • The launch of a Group Ethics program

For the fifth consecutive year, Electrolux was recognized as a leader in its industry sector in the prestigious Dow Jones Sustainability World Index (DJSI World).

Financial goals

Electrolux financial goals over a business cycle aim to strengthen the Group's leading, global position in the industry and assist in generating a healthy total yield for Electrolux shareholders. The objective is growth with consistent profitability. Key ratios exclude items affecting comparability.


The Board of Directors proposes a dividend for 2011 of SEK 6.50 per share, equivalent to a total dividend payment of approximately SEK 1,850m. The proposed dividend corresponds to approximately 86% of income for the period, excluding items affecting comparability. Based on the share price at the end of 2011, the dividend yield for 2011 amounted to 5.9%. The Group’s goal is for the dividend to correspond to at least 30% of income for the period, excluding items affecting comparability. For a number of years, the dividend level has been considerably higher than 30%.

The capital market

The Electrolux share is listed on Nasdaq OMX Stockholm. The market capitalization of Electrolux at year-end 2011 was approximately SEK 34 billion (60), which corresponded to 1.0% (1.4) of the total value of Nasdaq OMX Stockholm.

Over the past ten years, the average total return on an investment in Electrolux shares has been 8.5%. The corresponding figure for SIX Return Index was 6.0%.

Corporate governance

  • Keith McLoughlin new President and Chief Executive Officer as of January 1, 2011.
  • Keith McLoughlin and Ulrika Saxon elected new Board members at the Annual General Meeting 2011.
  • Unchanged fees to the Board members.
  • Performance based, long-term incentive program 2011 for top management.
  • Six new appointments in Group Management.
  • Three new roles within Group Management for closer cooperation between marketing, technology development and design.
  • Focus on ethics training program and implementation of a whistleblowing system.

Operations and strategy (PDF 21.1 Mb)

Results (PDF 7.5 Mb)

Annual Report in Swedish (PDF 25.1 Mb)

Net sales

Net sales

Operating income and operating margin1)

Operating income and operating margin
Factors impacting profitability

Raw material Weak market Increased efficiency Non-recurring costs Price pressure 6.1% 3.9% 3.1% Operating margin

Raw-material costs were SEK 2 billion higher than in 2010.


Weak market conditions in mature markets decreased sales and capacity utilization within manufacturing.


Improvements including increased efficiency, e.g., through global synergies and previous restructuring had a positive impact on earnings.


Non-recurring costs of SEK 825m were charged to operating income for overhead reductions and WEEE related costs for earlier years.


Price pressure was intensive during the year, particularly in Europe and North America.


2010 marked the first year in which Electrolux – in its current structure – achieved its operating margin goal of 6% over a full year, excluding items affecting comparability.


Electrolux achieved an operating margin of 3.9% despite higher raw-material costs and turbulent conditions in the Group's major markets of Europe and North America.


1) Excluding items affecting comparability

© Electrolux Group