Report for the first nine months of 2001

REPORT FOR THE FIRST NINE MONTHS OF 2001 - Net income per share down 19%, excluding items affecting comparability Amounts in Nine Nine Change Third Third Change SEKm, unless months months quarter quarter otherwise 2001 2000 2001 2000 stated Net sales 103,922 95,072 9.3% 32,793 29,644 10.6% Operating 6,330 6,333 0.0% 2,442 1,830 33.4% income Operating income, excl. 4,973 6,333 -21.5% 1,085 1,830 -40.7% items affecting comparability1 ) Margin,% 4.8 6.7 3.3 6.2 Income after 5,453 5,575 -2.2% 2,202 1,504 46.4% financial items Income after financial 4,096 5,575 -26.5% 845 1,504 -43.8% items excl. items affecting comparability1 ) Margin, % 3.9 5.9 2.6 5.1 Net income per 12.20 10.20 19.6% 5.65 2.85 98.2% share, SEK Net income per share, excl. 8.30 10.20 -18.6% 1.75 2.85 -38.6% items affecting comparability, SEK1) Value 229 2,137 -1,908 -453 406 -859 created2) Return on 21.0 19.2 equity, % Return on equity, excl. 14.3 19.2 items affecting comparability, % 1) Items affecting comparability include a capital gain in the third quarter 2001 amounting to SEK 3,120m from divestment of the major part of Leisure appliances, and a provision of SEK 1,763m for restructuring in the same quarter. 2) See definition on page 5. · Demand weakening in most product areas · Higher sales and operating income for Consumer Durables in Europe · Substantially lower income in North America due to costs for phase-in of new generation of refrigerators · Considerable decline in income for Components product line within Professional Indoor Products · Provision of SEK 1,763m for restructuring, mainly within Professional Indoor Products Net sales and income Net sales for Electrolux in the first nine months of 2001 amounted to SEK 103,922m, compared with SEK 95,072m for the same period in the preceding year. This corresponds to an increase of 9.3%, of which 9.9% is attributable to exchange rate fluctuations, 2.7% to changes in Group structure, and -3.3% to volume/price/mix. Operating income amounted to SEK 6,330 (6,333), corresponding to 6.1% (6.7) of sales. Income after financial items was SEK 5,453m (5,575), corresponding to 5.2% (5.9) of sales. Net income increased to SEK 4,156m (3,716), which corresponds to SEK 12.20 (10.20) per share. Items affecting comparability The above income figures include items affecting comparability in the third quarter amounting to SEK 1,357m. These items comprise a capital gain of SEK 3,120m on the divestment of the major part of the Leisure- appliance operation, and a provision of SEK 1,763m in the same quarter for restructuring. See the table below for details on the restructuring provision. Income excluding items affecting comparability Exclusive of items affecting comparability, operating income declined by 21% to SEK 4,973m (6,333), corresponding to 4.8% (6.7) of sales, and income after financial items decreased by 27% to SEK 4,096m (5,575), corresponding to 3.9% (5.9) of sales. Net income declined by 24% to SEK 2,824m (3,716), corresponding to SEK 8.30 (10.20) per share. Impact of changes in exchange rates In terms of both transaction and translation effects, changes in exchange rates during the period had a net positive impact on income after financial items of approximately SEK 390m. The impact is related to the continued weakening of the Swedish krona against most currencies, particularly the US dollar. Third quarter Sales in the third quarter of 2001 rose to SEK 32,793m (29,644). Of the total increase of 10.6%, +9.9% is attributable to changes in exchange rates, +1.8% to changes in Group structure, and -1.1% to volume/price/mix. Including the above items affecting comparability in the amount of SEK 1,357m, operating income in the third quarter increased to SEK 2,442m (1,830), corresponding to 7.4% (6.2) of sales. Income after financial items rose to SEK 2,202m (1,504), which corresponds to 6.7% (5.1) of sales. Net income was SEK 1,928m (1,018), corresponding to SEK 5.65 (2.85) per share. Income excluding items affecting comparability Exclusive of items affecting comparability, operating income declined by 41% to SEK 1,085m (1,830), corresponding to 3.3% (6.2) of net sales, and income after financial items decreased by 44% to SEK 845m (1,504), corresponding to 2.6% (5.1) of net sales. Net income declined by 41% to SEK 596m (1,018), corresponding to SEK 1.75 (2.85) per share. Provision for restructuring In order to strengthen the Group's core operations and adjust to a continued weak market environment, actions are being accelerated to improve the Group's cost structure and eliminate non-performing assets. As previously stated, a major restructuring charge will be taken for such action. In addition to the changes related to the provision in the third quarter, a review is in progress of the production structure as well as overall costs for marketing and administration within major appliances, primarily in Europe. Further action is also being considered within Professional Indoor Products. Provision in the third quarter of 2001 During the third quarter a provision of SEK 1,763m was made for the changes that have been considered to date. These refer primarily to the Components product line within Professional Indoor Products, which has shown a weak trend in earnings during 2001. The changes considered also include rationalization of production in the UK within consumer outdoor products. Approximately 70% of the provision relates to write-down of assets. The considered restructuring would involve personnel cutbacks of about 2,100 through 2003, and generate savings of approximately SEK 70m in 2001, SEK 400m in 2002, and SEK 500m on an annual basis after 2003. Provision in Q3 Estimat Estimate 2001 Provisi Provisio Total ed d on, n, write- provis Personn savings savings cash down, ion, el 2001, 2002, effect, SEKm SEKm cutback SEKm SEKm SEKm s Professional Indoor Products Food-service 68 100 168 353 42 89 equipment Components 320 1,131 1,451 1,612 19 246 Other 44 - 44 21 4 28 Total 432 1,231 1,663 1,986 65 363 Consumer 50 50 100 120 8 36 Durables, Outdoor Total 482 1,281 1,763 2,106 73 399 Cash flow Cash flow from operations, adjusted for changes in exchange rates, improved to SEK 7,818m (4,465). The improvement is traceable primarily to working capital, and in particular non-interest-bearing liabilities. Financial position Equity as of September 30, 2001 amounted to SEK 31,968m (26,348), which corresponded to SEK 93.70 (75.20) per share. The return on equity was 21.0% (19.2). Excluding items affecting comparability, the return on equity was 14.3% (19.2). Average net assets for the period were SEK 43,249m (38,672) including items affecting comparability, and SEK 45,177 (39,963) excluding these items. The increase is due primarily to consolidation of the newly acquired household appliances division of Email Ltd, and exchange rate effects in conjunction with translations into Swedish kronor. The return on net assets was 19.5% (21.8) including items affecting comparability, and 14.7% (21.1) excluding these items. Net assets in relation to sales improved to 28.0% (29.9) as of September 30, 2001. Net borrowings declined to SEK 9,678m (16,587), mainly as a result of improved cash flow and the net proceeds from acquired and divested operations. The net debt/equity ratio improved to 0.30 (0.61). Liquid funds at the end of the period amounted to SEK 15,125m (10,854). Value created The total value created by the Group during the first nine months of 2001 amounted to SEK 229m, compared with SEK 2,137m in the first nine months of the preceding year. The decline resulted mainly from a decrease in operating margin to 4.8% (6.7), due primarily to lower sales volume and non-recurring costs within Consumer Durables in the U.S., and a substantial decline in operating income for the Components product line. The capital turnover rate for the Group declined to 3.07, compared with 3.17 in the preceding year. The table below shows value created for the period, by business area. Value created Nine Nine Third Thir Full year 2000 by business mont months quart d area, SEKm hs 2000 Change er quar Chan 2001 2001 ter ge 2000 Consumer Durables Europe 619 591 28 241 212 29 986 North America 92 1,508 -1,416 -313 338 -651 1,669 Rest of the -853 -908 55 -338 -309 -29 -1,056 world Total Consumer -142 1,191 -1,333 -410 241 -651 1,599 Durables Professional Products Indoor 313 771 -458 -33 97 -130 713 Outdoor 673 595 78 182 197 -15 756 Total 986 1,366 -380 149 294 -145 1,469 Professional Products Common Group -615 -420 -195 -192 -129 -63 -645 costs, etc. Total 229 2,137 -1,908 -453 406 -859 2,423 Value created is defined as operating income, excluding items affecting comparability, less a weighted average cost of capital (WACC) on average net assets. The Group's WACC is calculated at 14% before tax. Operations by business area Consumer Durables Total industry shipments of core appliances in Western Europe were largely unchanged in volume compared with the same period last year during both the first nine months and the third quarter. Group sales in Europe through Electrolux Home Products were higher than last year. Operating income improved for the period as a whole as well as for the third quarter. The improvement in income is traceable mainly to higher volumes as well as improved productivity and cost reductions. Trends for price and mix remained unfavorable. In the US, industry shipments of core appliances declined in volume by about 3% during the first nine months, and increased by almost 4% in the third quarter. Inclusive of room air-conditioners and microwave ovens, the market declined by about 3% for the period as a whole and increased by 3% in the third quarter. Group sales of white goods in North America through Electrolux Home Products decreased from last year, mainly as a result of lower deliveries of refrigerators. Group sales were also negatively impacted by destocking at the retail level, particularly during the first half of the year. Operating income showed a marked decline as a result of lower volumes and substantial non-recurring costs related to the phase-in of a new generation of refrigerators. The total effect of problems within the refrigerator division such as delivery failures and higher costs for additional personnel and overtime involved a decline of approximately USD 90m (approximately SEK 950m) in income for the first nine months, of which approximately USD 30m (approximately SEK 320m) refers to the third quarter. In Brazil, total industry shipments of major appliances increased in the first half of the year but declined in the third quarter, and were lower for the period as a whole. Group sales increased over last year and operating income improved substantially. The Group also achieved good growth in volume in China and the ASEAN countries. Sales in India were lower than last year, however, and operating income showed a marked downturn. The newly acquired Email operation in Australia, now part of Electrolux Home Products, International, reported favorable trends for sales and income. The integration of this operation into the Electrolux Group has proceeded as planned. Overall, operating income for major appliances outside Europe and North America improved and was also positive excluding the recently acquired Australian operation. Within floor-care products, demand rose slightly in the US and declined somewhat in Europe. Sales for the floor-care product line were higher than last year. Operating income and margin declined, however, due to downward pressure on prices and a less favorable product mix. Demand for outdoor products was lower than in 2000 in both Europe and the US, as a result of cold weather. Inventory reductions by retailers in both of these markets affected the Group adversely. Group sales in Europe were lower, and operating income showed a marked decline. In the US as well, Group sales of consumer outdoor products were lower than in 2000, and operating income and margin declined. Overall, sales for the Consumer Durables business area were higher than in the first nine months of 2000, mainly as a result of the consolidation of the Australian operation and the effects of changes in exchange rates. Operating income and margin declined. Professional Indoor Products Demand for food-service equipment in Europe was largely unchanged. Group sales increased over last year mainly in the Nordic countries and in the US. Operating income was unchanged for the period as a whole, but improved in the third quarter as a result of higher volume and positive effects of structural changes in particularly Central Europe. Demand for laundry equipment increased in both Europe and the US, and the Group achieved higher sales volume. Operating income and margin improved substantially from last year, specifically in the third quarter. Demand for compressors continued to be weak in both the European and the American markets. Sales for the components product line were lower than last year. Operating income showed a marked downturn due to lower volumes, downward pressure on prices, higher material costs and costs related to capacity adjustments. Total sales for Professional Indoor Products increased, mainly as a result of currency effects. Operating income and margin declined. Professional Outdoor Products Demand for professional chainsaws increased during the third quarter in Western Europe and Latin America, but showed a downturn in other markets, particularly in North America. Total Group sales of chainsaws were lower than last year both for the third quarter and the period as a whole. Strong growth in sales was reported for professional lawn and garden products. Higher sales were also noted for power cutters, while sales of diamond tools rose in Europe and declined in the US. Overall, sales for Professional Outdoor Products showed continued good growth and operating income improved. Major changes in the Group since June 30, 2001 As of July 1, the Group acquired Marazzini Ernesto S.p.A. in Italy, which manufactures mainly lawn mowers and other outdoor products for the consumer market. In 2000 the company had sales of approximately SEK 400m, and about 90 employees. The divestment of the major part of the Leisure-appliance operation was finilized as of July 31, 2001. In 2000 the divested operations had sales of approximately SEK 4,200 and some 2,200 employees. The sale generated a capital gain of SEK 3,120m, which will be used for efficiency measures. In October, an agreement was reached on divestment of Electrolux Baking S.A. in France, which is part of Professional Indoor Products. Electrolux Baking manufactures a wide range of baking equipment. In 2000 the company reported sales of SEK 315m, and had 230 employees. The divestment will generate a capital loss of SEK 100m, which is included in the Group's provision for restructuring in the third quarter of 2001. Ongoing structural changes and cost adjustments The measures announced at the beginning of 2001 aimed at achieving cost adjustments are being implemented as planned. Of the provision of SEK 883m in the fourth quarter of 2000, approximately SEK 470m had been utilized by September 30, 2001. The measures have involved personnel cutbacks of about 1,090 employees, and have generated total savings of SEK 310m. Action Provision, Estimated Utilized Savings Q4 2000 savings in as of Sept as of 2001 30, 2001 Sept 30, Amounts in SEK million 2001 Alignment of the pan- European organization, 350 160 150 140 Electrolux Home Products, Europe Alignment of the organization and logistics structure, 200 230 200 130 Electrolux Home Products, North America Consolidation of 200 20 20 20 production, floor-care products Rationalization of IT 130 30 100 20 structure, etc. Total, approx. 880 440 470 310 Parent company Net sales for the parent company, AB Electrolux, in the first nine months of 2001 amounted to SEK 5,402m (5,346). Income after financial items was SEK 2,230m (6,122), including dividends from subsidiaries in the amount of SEK 2,955m (6,764). Capital expenditure for the period was SEK 93m (123). Liquid funds at the end of the period amounted to SEK 6,907m (3,661), compared with SEK 2,701m at year-end 2000. Repurchase of shares No shares were acquired in the first nine months of 2001. The Group thus still owns 25,035,000 series-B shares corresponding to 6.84% of the total number of shares, with a total par value of SEK 125m. The average price paid for the repurchased shares was SEK 127.40 per share. The Group has no voting rights for these shares. The total number of shares in AB Electrolux is 366,169,580. In September 2001, the Board decided to re-initiate the share repurchase program. The decision is taken in accordance with the renewed authorization granted by the Annual General Meeting on April 24, 2001, and provides for a possibility to buy a further 3.16% of the total number of shares in the Company during the period up to the next AGM. Outlook for rest of 2001 No improvement in market conditions is expected during the rest of the year in Europe or the US. There is increased uncertainty regarding consumer confidence and household purchases of the Group's product categories, particularly in the US. Although several of Electrolux' operations will achieve improved income for 2001 the Group has not changed its outlook as announced in the press release of September 21, which stated that overall operating income for the full year, exclusive of items affecting comparability, will be significantly lower than in 2000. Stockholm, October 26, 2001 Michael Treschow President and CEO Factors affecting forward-looking statements This report contains "forward-looking" statements within the meaning of the US Private Securities Litigation Reform Act of 1995. Such statements include, among others, the financial goals or targets of Electrolux for future periods and future business and financial plans. Actual results may differ materially from these goals and targets due to a variety of factors. These factors include, but may not be limited to the following; the success in developing new products and marketing initiatives, progress in achieving operational and capital efficiency goals, the success in identifying growth opportunities and acquisition candidates and the integration of these opportunities with existing businesses, progress in achieving structural and supply-chain reorganization goals, competitive pressures to reduce prices, significant loss of business from major retailers, consumer demand, effects of currency fluctuations and the effect of local economies on product demand as well as the possibility of continued terrorist activity throughout the world and its impact on the global economy. Consolidated income Nine Nine Third Third Full statement, SEKm months months quarte quarter year 2001 2000 r 2000 2000 2001 Net sales 103,922 95,072 32,793 29,644 124,493 Cost of goods sold -80,952 -71,228 - -22,118 -93,549 25,763 Selling expense -13,403 -12,950 -4,719 -4,358 -17,092 Administrative -4,379 -4,435 -1,123 -1,244 -5,585 expense Other operating -215 -126 -103 -94 -217 income/expense Items affecting 1,357 - 1,357 - -448 comparability Operating income* 6,330 6,333 2,442 1,830 7,602 Margin, % 6.1 6.7 7.4 6.2 6.1 Financial items, -877 -758 -240 -326 -1,072 net Income after 5,453 5,575 2,202 1,504 6,530 financial items Margin, % 5.2 5.9 6.7 5.1 5.2 Taxes -1,356 -1,890 -300 -502 -2,121 Minority interests 59 31 26 16 48 in net income Net income 4,156 3,716 1,928 1.018 4,457 * Including -3,140 -2,792 -1,127 -919 -3,810 depreciation in the amount of: Net income per 12.20 10.20 5.65 2.85 12.40 share, SEK Number of shares 341.1 350.4 341.1 350.4 341.1 after buy backs, 341.1 363.3 341.1 358.4 359.1 million Average number of shares after buy backs, million Consolidated balance sheet, SEKm Septembe Septembe Full r 30 r 30 year 2001 2000 2000 Assets Fixed assets 32,799 29,715 29,680 Inventories, etc. 18,699 16,545 16,880 Accounts receivable 27,043 25,458 23,214 Other receivables 7,873 6,277 9,093 Liquid funds 15,125 10,854 8,422 Total assets 101,539 88,849 87,289 Equity and liabilities Shareholders' equity 31,968 26,348 26,324 Minority interests 766 822 810 Interest-bearing liabilities and 24,803 27,441 25,398 provisions Non-interest-bearing liabilities and 44,002 34,238 34,757 provisions Total equity and liabilities 101,539 88,849 87,289 Contingent liabilities 1,269 1,325 Change in equity, SEKm Nine Nine Full months months Year 2001 2000 2000 Opening balance 26,324 25,781 25,781 Dividend payment -1,365 -1,282 -1,282 Repurchase of shares - -1,998 -3,193 Translation differences 2,853 131 561 Net income 4,156 3,716 4,457 Closing balance 31,968 26,348 26,324 Consolidated cash flow statement, Nine Nine Full SEKm months months year 2001 2000 2000 Operations Income after financial items 5,453 5,575 6,530 Depreciation according to plan 3,140 2,792 3,810 charged against above income Provisions and capital gains/losses -1,821 -59 628 Taxes paid -983 -1,664 -2,329 Changes in operating assets and liabilities Change in inventories 165 615 -17 Change in accounts receivable -1,697 -3,228 -884 Change in other current assets 162 -1,440 -3,002 Change in current liabilities 3,399 1,874 1,363 and provisions Cash flow from operations 7,818 4,465 6,099 Investments Investments in/divestments of 4,381 329 180 operations and trade mark Capital expenditure -2,969 -3,095 -4,423 Other 501 618 876 Cash flow from investments 1,913 -2,148 -3,367 Dividend -1,365 -1,282 -1,282 Repurchase of shares - -1,998 -3,193 Cash flow after dividends 8,366 -963 -1,743 Change in interest-bearing -2,637 1,326 -422 liabilities Total cash flow 5,729 363 -2,165 Liquid funds at beginning of year 8,422 10,312 10,312 Exchange-rate differences referring 974 179 275 to liquid funds Liquid funds at end of period 15,125 10,854 8,422 Change in net borrowings Total cash flow excl. change in 8,366 -963 -1,743 loans Net borrowings at beginning of year -16,976 -13,423 -13,423 Exchange-rate differences referring -1,068 -2,201 -1,810 to net borrowings Net borrowings at end of period -9,678 -16,587 -16,976 Net sales by Nine Nine Third Third Full business area, SEKm months months quarter quarter year 2001 2000 2001 2000 2000 Consumer Durables Europe 34,384 31,266 12,237 10,832 42,704 North America 37,566 37,475 11,154 10,484 46,581 Rest of the world 10,971 6,486 3,509 2,276 9,203 Total Consumer 82,921 75,227 26,900 23,592 98,488 Durables Professional Products Indoor 13,450 13,380 3,829 4,092 17,561 Outdoor 7,325 6,177 2,108 1,846 8,039 Total Professional 20,775 19,557 5,937 5,938 25,600 Products Other 226 288 -44 114 405 Total 103,922 95,072 32,793 29,644 124,493 Operating income by Nine Nine Third Third Full business area, SEKm months months quarte quarte year 2001 2000 r r 2000 2001 2000 Consumer Durables Europe 1,610 1,488 585 504 2,179 Margin, % 4.7 4.8 4.8 4.7 5.1 North America 1,680 2,937 188 812 3,577 Margin, % 4.5 7.8 1.7 7.7 7.7 Rest of the world 196 -113 21 -31 23 Margin, % 1.8 -1.7 0.6 -1.4 0.2 Total Consumer 3,486 4,312 794 1,285 5,779 Durables Margin, % 4.2 5.7 3.0 5.4 5.9 Professional Products Indoor 963 1,409 176 313 1,577 Margin, % 7.2 10.5 4.6 7.6 9.0 Outdoor 982 893 280 289 1,153 Margin, % 13.4 14.5 13.3 15.7 14.3 Total Professional 1,945 2,302 456 602 2,730 Products Margin, % 9.4 11.8 7.7 10.1 10.7 Common Group costs, -458 -281 -165 -57 -459 etc. Items affecting 1,357 - 1,357 - -448 comparability Total 6,330 6,333 2,442 1,830 7,602 Value created, SEKm Nine Nine Third Third Full month months quarte quarte year s 2000 r r 2000 2001 2001 2000 Consumer Durables Europe 619 591 241 212 986 North America 92 1,508 -313 338 1,669 Rest of the world -853 -908 -338 -309 -1,056 Total Consumer -142 1,191 -410 241 1,599 Durables Professional Products Indoor 313 771 -33 97 713 Outdoor 673 595 182 197 756 Total Professional 986 1,366 149 294 1,469 Products Common Group costs, -615 -420 -192 -129 -645 etc. Total 229 2,137 -453 406 2,423 Key ratios Nine Nine Third Third Full months months quarter quarter year 2001 2000 2001 2000 2000 Net income per 12.20 10.20 5.65 2.85 12.40 share, SEK1) Return on equity, 21.0 19.2 17.3 %2) Return on net 19.5 21.8 19.6 assets, %3) Net debt/equity 0.30 0.61 0.63 ratio4) Capital 2,969 3,095 934 1,103 4,423 expenditure, SEKm Average number of 88,200 87,900 88,300 88,300 87,128 employees 1) Based on an average of 341.1million shares after buy-backs. 2) Annualized net income, expressed as a percentage of opening equity. 3) Annualized operating income, expressed as a percentage of average net assets. 4) Net borrowings, i.e., interest-bearing liabilities less liquid funds, in relation to adjusted equity. Adjusted equity is defined as equity including minority interests. Exchange rates in SEK Nine months Nine months Full 2001 2000 year 2000 USD, average 10.27 8.97 9.17 USD, end of period 10.65 9.67 9.49 EUR, average 9.19 8.42 8.48 EUR, end of period 9.77 8.51 8.83 GBP, average 14.82 13.82 13.94 GBP, end of period 15.68 14.15 14.15 DEM, average 4.70 4.31 4.33 DEM, end of period 5.00 4.35 4.52 Quarterly data Net sales and income 1st 2nd 3rd 4th Full qtr qtr qtr qtr year Net sales, SEKm 2001 33,670 37,459 32,793 2000 31,229 34,199 29,644 29,421 124,493 Operating income, SEKm 2001 1,852 2,036 2,442 Margin,% 5.5 5.4 7.4 20011) 1,852 2,036 1,085 Margin, % 5.5 5.4 3.3 2000 2,050 2,453 1,830 1,269 7,602 Margin,% 6.6 7.2 6.2 4.3 6.1 20002) 2,050 2,453 1,830 1,717 8,050 Margin, % 6.6 7.2 6.2 5.8 6.5 Income after financial 2001 1,499 1,752 2,202 items, SEKm Margin,% 4.5 4.7 6.7 20011) 1,499 1,752 845 Margin, % 4.5 4.7 2.6 2000 1,786 2,285 1,504 955 6,530 Margin,% 5.7 6.7 5.1 3.2 5.2 20002) 1,786 2,285 1,504 1,403 6,978 Margin, % 5.7 6.7 5.1 4.8 5.6 Net income, SEKm 2001 1,066 1,162 1,928 20011) 1,066 1,162 596 2000 1,188 1,510 1,018 741 4,457 20002) 1,188 1,510 1,018 1,046 4,762 Net income per share, 2001 3.10 3.45 5.65 SEK 20011) 3.10 3.45 1.75 2000 3.25 4.10 2.85 2.20 12.40 20002) 3.25 4.10 2.85 3.05 13.25 Value creation, SEKm 2001 290 392 -453 2000 691 1,040 406 286 2,423 1) Exclusive of items affecting comparability, which in 2001 amount to SEK 1,357m. 2) Exclusive of items affecting comparability, which in 2000 amounted to SEK -448m. Net sales by business area, SEKm Consumer Durables 1st 2nd 3rd 4th Full qtr qtr qtr qtr year Europe 2001 10,901 11,246 12,237 2000 10,308 10,126 10,832 11,438 42,704 North America 2001 12,308 14,104 11,154 2000 12,351 14,640 10,484 9,106 46,581 Rest of the world 2001 3,233 4,229 3,509 2000 1,951 2,259 2,276 2,717 9,203 Total Consumer Durables 2001 26,442 29,579 26,900 2000 24,610 27,025 23,592 23,261 98,488 Professional Products, 2001 4,584 5,037 3,829 Indoor 2000 4,398 4,890 4,092 4,181 17,561 Professional Products, 2001 2,525 2,692 2,108 Outdoor 2000 2,140 2,191 1,846 1,862 8,039 Total Professional 2001 7,109 7,729 5,937 Products 2000 6,538 7,081 5,938 6,043 25,600 Operating income by business area, SEKm Consumer Durables 1st qtr 2nd 3rd qtr 4th qtr Full year qtr Europe 2001 447 578 585 Margin,% 4.1 5.1 4.8 2000 566 418 504 691 2,179 Margin,% 5.5 4.1 4.7 6.0 5.1 North America 2001 807 685 188 Margin,% 6.6 4.9 1.7 2000 928 1,197 812 640 3,577 Margin,% 7.5 8.2 7.7 7.0 7.7 Rest of the world 2001 45 130 21 Margin,% 1.4 3.1 0.6 2000 -71 -11 -31 136 23 Margin,% -3.6 -0.5 -1.4 5.0 0.2 Professional Products, 2001 328 459 176 Indoor Margin,% 7.2 9.1 4.6 2000 423 673 313 168 1,577 Margin,% 9.6 13.8 7.6 4.0 9.0 Professional Products, 2001 331 371 280 Outdoor Margin,% 13.1 13.8 13.3 2000 309 295 289 260 1,153 Margin,% 14.4 13.5 15.7 14.0 14.3 Common Group costs, etc. 2001 -106 -187 -165 2000 -105 -119 -57 -178 -459 Items affecting 2001 - - 1,357 comparability 2000 - - - -448 -448 Five-year review Amounts in SEKm 2000 1999 1998 1997 1996 unless otherwise indicated Net sales 124,493 119,550 117,524 113,000 110,000 Operating income 7,602 7,204 7,028 2,654 4,448 Margin, % 6.1 6.0 6.0 2.3 4.0 Margin, excluding 6.5 6.2 5.2 4.0 4.0 items affecting comparability, %1) Income after 6,530 6,142 5,850 1,232 3,250 financial items Margin, % 5.2 5.1 5.0 1.1 3.0 Margin, excluding 5.6 5.3 4.2 2.8 3.0 items affecting comparability, %1) Net income 4,457 4,175 3,975 352 1,850 Net income per 12.40 11.40 10.85 0.95 5.05 share, SEK2) Dividend, adjusted 4.00 3.50 3.00 2.50 2.50 for share issues2) Value creation 2,423 1,782 437 Return on equity % 17.3 17.1 19.3 1.6 8.7 Return on net 19.6 18.3 17.5 6.4 10.9 assets % Net debt/equity 0.63 0.50 0.71 0.94 0.80 ratio Capital 4,423 4,439 3,756 4,329 4,807 expenditure Average number of 87,128 92,916 99,322 105,950 112,140 employees 1) As of 1997, items affecting comparability are excluded 2) 2000: After buy-backs of own shares, the average number of shares amounted to 359,083,955 and at year-end 341,134,580 Total number of shares for 1996-1999 was 366,169,580 This report has not been audited. A number of new standards from the Swedish Financial Accounting Standards Council went into effect as of January 1, 2001. The implementation of the new standards has had no material effect on the consolidated financial statements. Financial information from Electrolux is also available at www.electrolux.com/ir ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2001/10/26/20011026BIT00020/bit0001.doc The Full Report http://www.waymaker.net/bitonline/2001/10/26/20011026BIT00020/bit0001.pdf The Full Report