+1.1%
Most business areas showed mix improvements during 2014 as a result of launches of new products and strong focus on the most profitable product categories and sales channels. Price increases also contributed to the organic sales growth.
4.3%
Operating income improved, excluding items affecting comparability, and amounted to SEK 4,780m corresponding to a margin of 4.3%. Operating income for Major Appliances EMEA showed strong earnings recovery in 2014 as a result of structural cost savings and mix improvements.
Price increases in several regions, overall cost savings and ongoing global initiatives to reduce complexity and improve competitiveness within manufacturing contributed to the favorable development of operating income.
In September 2014, Electrolux signed an agreement to acquire GE Appliances, one of the leading manufacturers of kitchen and laundry equipment in the US. The acquisition is expected to be completed in 2015. The coordination of the Electrolux Group’s and GE Appliances’ operations is expected to create a stable growth platform for the North American market.
| 2014 | |
| Major Appliances: Europe, Middle East and Africa 31% | 31 |
| Major Appliances: North America 30% | 30 |
| Major Appliances: Latin America 18% | 18 |
| Major Appliances: Asia/Pacific 8% | 8 |
| Small Appliances 8% | 8 |
| Professional Products 5% | 5 |
The Group’s products are sold in more than 150 countries. The largest of these are in Europe and North America. Electrolux is expanding its presence in growth markets, such as Latin America, Africa, the Middle East and Asia.
| 2014 | |
| Kitchen 61% | 61 |
| Professional kitchen 3% | 3 |
| Laundry 16% | 16 |
| Professional laundry 2% | 2 |
| Small appliances 8% | 8 |
| Adjacent product categories 10% | 10 |
Electrolux is the only appliance manufacturer in the industry to offer complete solutions for both consumers and professionals. The focus is on innovative and energy-efficient products in the premium segments.
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 return for Electrolux shareholders.
6%
OF AT LEAST 6%
| 10 | 11 | 12 | 13 | 14 | |
| Operating income | 6494 | 3155 | 5032 | 4055 | 4780 |
| Operating margin | 6.1 | 3.1 | 4.6 | 3.7 | 4.3 |
| Goal 6% | 6 | 6 | 6 | 6 | 6 |
4x
OF AT LEAST 4 TIMES
| 10 | 11 | 12 | 13 | 14 | |
| Capital turnover-rate | 5.1 | 4.3 | 3.9 | 3.8 | 4 |
| Goal 4 times | 4 | 4 | 4 | 4 | 4 |
20%
OF AT LEAST 20%
| 10 | 11 | 12 | 13 | 14 | |
| Average net assets | 20940 | 23354 | 28112 | 28915 | 27941 |
| Return on net assets | 31 | 13.5 | 17.9 | 14 | 17.1 |
| Goal 20% | 20 | 20 | 20 | 20 | 20 |
4%
OF AT LEAST 4% ANNUALY
| 10 | 11 | 12 | 13 | 14 | |
| Net sales | 106326 | 101598 | 109994 | 109151 | 112143 |
| Organic sales growth<sup>1)</sup> | 1.5 | 0.2 | 5.5 | 4.5 | 1.1 |
| Goal 4% | 4 | 4 | 4 | 4 | 4 |
1) In local currencies and comparable unites
*Financial goals are excluding items affecting comparability.