Annual Report 2013


2013 in summary

  • Organic growth of 4.5%, sales increased in most regions.
  • Extensive product launches across most markets.
  • Operating income declined, and was impacted by continued weak markets in Europe and negative currency movements.
  • Good development for the operations in North America.

Market overview

In 2013, market demand for appliances in North America increased by 9%. Western Europe declined by 1%, while Eastern Europe was unchanged. In total, market volumes in Europe declined by 1%. Market demand in Australia increased.

Demand in Southeast Asia and China continued to show growth. Demand for appliances in Brazil declined, while other Latin American markets showed growth.

Market demand for core appliances in Europe
A total of approximately 70 million core appliances were sold in Europe in 2013, which is about 13% lower than the record year of 2007.
Market demand for core appliances in the US
A total of approximately 39 million core appliances were sold in the US in 2013, corresponding to the level of 1998 and about 20% lower than the top levels in 2005 and 2006. Sources: US: AHAM. Europe: GfK. For other markets there are no comprehensive market statistics.

Net sales and operating income

Organic sales growth for the Electrolux Group in 2013 was 4.5%. All business areas showed sales growth except for Major Appliances Europe, Middle East and Africa. Sales growth were particularly strong for major appliances in Asia/Pacific, North America and Latin America.

The negative trend in market conditions in core markets in Europe has adversely impacted results for the Group’s operations in the region. In addition, results were impacted by unfavorable currency movements in the amount of SEK -1,460m. However, volume growth, price increases and product mix improvements contributed to operating income. 2013 was a year with extensive product launches, in most regions, which contributed to an improved product mix.

Costs savings and the ongoing global initiatives to reduce complexity and improve competitiveness within manufacturing contributed to operating income.

Financial overview
SEKm 2012 2013 Change, %
Net sales 109,994 109,151 -0.8
Change in net sales, %, whereof

Organic growth - - 4.5
Changes in exchange rates - - -5.3
Operating income

Major Appliances Europe, Middle East and Africa 1,105 347 -69
Major Appliances North America 1,452 2,136 47
Major Appliances Latin America 1,590 979 -38
Major Appliances Asia/Pacific 746 467 -37
Small Appliances 461 391 -15
Professional Products 588 510 -13
Other, common Group costs, etc. -910 -775 15
Operating income excluding items affecting comparability 5,032 4,055 -19
Margin, % 4.6 3.7
Items affecting comparability -1,032 -2,475
Operating income 4,000 1,580 -61
Margin, % 3.6 1.4

Financial goals over a business cycle

The financial goals set by Electrolux aim to strengthen the Group’s leading, global position in the industry and assist in generating a healthy total yield for Electrolux shareholders.

The organic sales growth in 2013 of 4.5% exceeded the goal of 4%. Operating margin amounted to 3.7%, the capital turnover-rate was 3.8 and the return on net assets was 14.0%.

Sales growth
1) In comparable currencies.
Operating margin
Key ratios are excluding items affecting comparability.
Capital turnover-rate
Return on net assets
Key ratios are excluding items affecting comparability.

Structural changes in 2013

In 2013, Electrolux continued the work to increase production competitiveness by optimizing its industrial production system. In addition, to adapt to the current market situation in Europe, further actions were initiated to reduce costs. In total, savings for the above mentioned activities are going to be realized by SEK 1.8bn, with full effect 2016, for charges totaling SEK 3.4bn. In 2013, SEK 2.5bn was reported as items affecting comparability within operating income, including an impairment of SEK 0.9bn related to an IT-platform. The remaining part of the restructuring charges, approximately SEK 2.0bn, is expected to be taken during 2014, see page 96.

Launches of new products

During the year, a wide range of products were launched across most markets. In 2013, the Group’s biggest launch was made in China, an important growth market for Electrolux. More than 60 new products for kitchen and laundry were launched in the Chinese market and the launch will continue in 2014. In Europe, the launch of the Electrolux Inspiration Range has now been carried out across all core markets. The launch, which started in 2012, includes a complete range of appliances for the premium segment. In North America, a number of products were launched under the Electrolux, Frigidaire and Eureka brands.

A wide range of new products within small domestic appliances and vacuum cleaners were launched across most markets.


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