Annual Report 2009

March 5, 2010

2009 a summary of a successful year

  • Sales declined in comparable currencies due to weak demand on most of Electrolux main markets.
  • Operating income improved on the basis of cost savings, higher prices, improved mix and lower costs for raw materials.
  • Launches of new products particularly in North America and Latin America contributed to an improved product mix.
  • Results improved in all regions.
  • Strong cash flow generated by improvements in operating income and working capital.
  • The Group’s ongoing structural efforts to reduce tied-up capital contributed to the strong cash flow.
  • Extra payments of SEK 4 billion to Group pension funds reduced balance-sheet risk exposure to pension commitments.

On the right track

Electrolux performance during the recession shows the effective- ness of the strategy. Innovative products, investment in the Electrolux brand and a focus on strong cash flow and greater cost efficiency have paid off. Electrolux will emerge stronger than ever from the recession.

Despite deteriorating market conditions in recent years, Electrolux has successfully applied the strategy. This involved the largest product launches in company history. Comprehensive launches were implemented in Europe in 2007 and in the US in 2008. They resulted in an improved product mix.

Prices have been raised and maintained in the face of declining demand. Manufacturing efficiency continued to increase, as production was relocated to low-cost countries and measures were implemented to reduce the production-cost structure.

The Group’s structural efforts to decrease tied-up capital in the working capital have contributed to the strong cash flow in 2009. The potential for profitable growth is better than ever. On the whole, the Group’s response to the recession will enable Electrolux to be stronger when demand recovers.

Annual Report 2009

Annual Report 2009

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