A successful strategy

Success stories

Electrolux has made a dynamic transformation into an innovative consumer-focused company and changed its operations around the world as described in the annual reports between 2006 and 2011. An important part of Electrolux strategy is to reduce tied up capital to free up resources for investments in new products. Read more about Electrolux working capital program .

2006

We have transformed the floor-care business

The market for floor-care products underwent rapid changes at the end of the 1990s. Severe competition and low profitability generated intensive pressure for change. This led to a vigorous transformation of the Group’s operations, which thereafter have demonstrated highly favorable development. The return on net assets has been affected by the acquired company CTI 2011.

Return on net assets, Small Appliances

2007

Turnaround of the Brazilian operation

Electrolux entered the Brazilian appliances market in 1996 by acquiring Refripar, one of the largest appliance producers in the country. Refripar’s products were positioned in the low-price segment, and the company had high production costs. Today, Electrolux is one of the leading appliance brands in Brazil, with a high rate of growth and favorable profitability.

Rapid growth in Brazil

2008

Success in Australia

In Australia, the Group has turned around an unprofitable appliance business acquired in 2001 by focusing on new products in the high-price segments, building the Electrolux brand and by restructuring and improving production efficiency.

Net sales and operating margin, Major Appliances Asia/Pacific

2009

On the right track through the recession

The performance of Electrolux during the recession proves the effectiveness 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 emerged stronger than ever from the recession.

Net sales and operating margin

2010

Transformation of Professional Products

A high pace of innovation and improved cost efficiency, combined with a global premium brand and a global service network, generated a record-high operating margin for Professional Products.

Net sales and operating margin, Professional Products

2011

Profitable and fast-growing operations in Southeast Asia

With a strong brand, products adapted to the specific needs of the region and effective marketing and distribution, Electrolux has grown rapidly with high profitability in Southeast Asia.

Net sales and operating margin, Southeast Asia

2012

Less capital for more growth

For several years, Electrolux has been working intensively to reduce tied-up capital in the Group. Read more about less capital for more growth. 

Net operating working capital

Read more in the Electrolux annual report archive at www.electrolux.com/annualreports.