Net sales for the Electrolux Group in 2016 amounted to SEK 121,093m (123,511). Organic sales declined by 1.1%, currency translation had a negative impact of 1.0% and contributions from acquisitions amounted to 0.1%. Major Appliances EMEA, Major Appliances Asia/Pacific and Professional Products reported organic sales growth. Weak market environment and lower sales volumes in Latin America impacted sales. Sales for Major Appliances North America were impacted by lower sales under private labels and price pressure. Strategic decisions to reduce sales and exit from unprofitable product categories also had a negative impact.
Operating income for 2016 improved significantly to SEK 6,274m (2,741), corresponding to a margin of 5.2% (2.2). Operating income for 2015 included costs of SEK 2,059m related to the not completed acquisition of GE Appliances. Excluding these costs, the margin for 2015 was 3.9%.
Operating income improved for most business areas. Increased efficiency and product-mix improvements contributed to the positive earnings trend, while soft market demand in Latin America had a negative impact on operating income.
Changes in exchange rates had a negative impact of SEK 1,662m on operating income year-over-year. The impact of transaction effects was SEK –1,470m and refers mainly to the operations in EMEA and Latin America. The Egyptian pound which was floated in early November 2016 and the weakening of the British pound had a negative impact on operations in EMEA. In Latin America the negative currency impact referred to a stronger US dollar against several currencies in the region. The negative impact on operating income was to some extent mitigated by mix improvements and price increases. Translation effects amounted to SEK –192m.
Net financial items increased to SEK –693m (–640). The financial net has been impacted by approximately SEK –180m related to the revaluation of financial liabilities in Egypt due to the depreciation of the Egyptian pound.
The financial net for 2015 included costs of SEK 187m for a bridge facility related to the not completed acquisition of GE Appliances.
Income after financial items improved to SEK 5,581m (2,101), corresponding to 4.6% (1.7) of net sales.
Income for the period amounted to SEK 4,493m (1,568), corresponding to SEK 15.64 (5.45) in earnings per share before dilution.
Total taxes for 2016 amounted to SEK –1,088m (–533), corresponding to a tax rate of 19.5% (25.4). The effective tax rate was impacted by a positive revaluation of the deferred tax assets at the end of the year.