2011 Results,February 2, 2012Keith McLoughlin, President and CEOPeter Nyquist, SVP IR and Financial InformationPer Carlsso...
2011 summary Underlying EBIT of SEK 4bn – Price pressure and raw-materials headwind – Weak demand in mature markets while...
Q4 HighlightsEBIT (SEKm)                                                          Margin (%)                              ...
Non-recurring costs in Q4 Non-recurring items            Impact, SEKm Reduction of staffing levels           -635  Europe ...
Q4 Cash flow Operating cash flow, excluding acquisitions and divestments, amounted to SEK 287m  – Payment of CTI amounted...
Consumer DurablesMajor Appliances Europe,Middle East & AfricaEBIT (SEKm)                                           Margin ...
Negative growth in Europe Further weakening in Southern Europe and slow-down in Eastern Europe                            ...
Consumer DurablesMajor Appliances North AmericaEBIT (SEKm)                                           Margin (%)           ...
Market in North Americacontinued to decline in Q4                       Quarterly comparison y-o-y15%10% 5% 0%-5%-10%-15% ...
Consumer DurablesMajor Appliances Latin AmericaEBIT (SEKm)                       Margin (%)                               ...
Consumer DurablesMajor Appliances Asia/PacificEBIT (SEKm)                                          Margin (%)             ...
Consumer DurablesSmall AppliancesEBIT (SEKm)                                          Margin (%)                          ...
Professional ProductsFood-service & Laundry productsEBIT (SEKm)                        Margin (%)                         ...
Steel: Costs in line with 2011,majority hedgedSteel as share of total                                         Market price...
Plastics: High level of uncertainty,slight headwind expectedPlastics as share of total                                Mark...
Q1 and FY 2012 y-o-yIn accordance with forward-looking statementsin the CEO letter and press release                      ...
17
Factors affecting forward-looking statementsFactors affecting forward-looking statementsThis presentation contains “forwar...
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Electrolux Consolidated results 2011 presentation

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Highlights of the fourth quarter of 2011. Net sales amounted to SEK 28,369m (27,556) and income for the period was SEK 221m (677), or SEK 0.77 (2.38) per share. Operating income amounted to SEK 1,441m (1,714), corresponding to a margin of 5.1% (6.2), excluding items affecting comparability and non-recurring items.

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Electrolux Consolidated results 2011 presentation

  1. 1. 2011 Results,February 2, 2012Keith McLoughlin, President and CEOPeter Nyquist, SVP IR and Financial InformationPer Carlsson, Acting CFO
  2. 2. 2011 summary Underlying EBIT of SEK 4bn – Price pressure and raw-materials headwind – Weak demand in mature markets while emerging markets continued to grow Strong underlying cash flow Acquisitions of Olympic Group and CTI Adaptation of production capacity Reduction of overhead costs Investment in Marketing, R&D and Design organizations 2
  3. 3. Q4 HighlightsEBIT (SEKm) Margin (%)  Underlying EBIT amounted to2500 8 SEK 1,441m2000 6,2  Non-recurring items amounted to 6 5,1 SEK 825m1500 – Overhead reductions: SEK 635m 4 – WEEE related costs: SEK 190m1000  North America: Lower volumes 2500 and higher costs for raw materials and sourced products 0 0  Rest of the Group showed solid (SEKm) Q4 2011 Q4 2010 Sales 28,369 27,556 results in a tough environment EBIT* 616 1,714 Margin* 2.2 6.2 Underlying EBIT** 1,441 1,714 Underlying margin** 5.1 6.2 * Excluding items affecting comparability * *Excluding items affecting comparability & non-recurring items 3
  4. 4. Non-recurring costs in Q4 Non-recurring items Impact, SEKm Reduction of staffing levels -635 Europe -500 North America -15 Asia/Pacific -20 Small Appliances -45 Common Group functions -55 WEEE related costs, Europe -190 Total -825 4
  5. 5. Q4 Cash flow Operating cash flow, excluding acquisitions and divestments, amounted to SEK 287m – Payment of CTI amounted to SEK –3,804m Lower operating income than in Q4, 2010 Seasonally higher sales in the quarter Continued structural improvement of working capital 5
  6. 6. Consumer DurablesMajor Appliances Europe,Middle East & AfricaEBIT (SEKm) Margin (%)  Excluding acquisitions, lower1000 10 sales as a result lower prices and negative country mix800 8  Improved underlying EBIT600 5,0 6 – Lower prices 4,6 – Improved product mix400 4 – Negative country mix200 2 – Cost savings – Higher costs for raw materials 0 0  Non-recurring items amounted (SEKm) Q4 2011 Q4 2010 Sales 9,749 9,677 to SEK 690m EBIT -202 447 Margin -2.1 4.6 Underlying EBIT* 488 447 Underlying margin* 5.0 4.6 * Excluding non-recurring items 6
  7. 7. Negative growth in Europe Further weakening in Southern Europe and slow-down in Eastern Europe Quarterly comparison y-o-y 10% Y-o-y: +0.4% 5% 0% -5% -10% -15% -20% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2006 2007 2008 2009 2010 2011Market Development %W. Eur. +4 +1 +1 +5 +1 +1 -1 -5 -4 -4 -5 -8 -9 -9 -4 -2 +1 0 0 0 -2 -2 -3 -3E. Eur. +1 +9 +6 +7 +14 +5 +5 +10 +6 +5 +4 -15 -31 -30 -26 -17 -7 +1 +5 +13 +13 +12 +7 +9 7
  8. 8. Consumer DurablesMajor Appliances North AmericaEBIT (SEKm) Margin (%)  Lower sales as a result of lower600 6 volumes 4,3  Underlying EBIT declined to400 4 SEK 91m – Lower volumes – reduced200 1,5 2 capacity utilization – Higher raw-material costs 0 0 – Higher transportation costs – Higher costs for sourced-200 -2 products (SEKm) Q4 2011 Q4 2010  Non-recurring items amounted Sales 6,271 6,752 to SEK 15m EBIT 76 291 Margin 1.2 4.3  Price increases Underlying EBIT* 91 291 Underlying margin* 1.5 4.3 * Excluding non-recurring items 8
  9. 9. Market in North Americacontinued to decline in Q4 Quarterly comparison y-o-y15%10% 5% 0%-5%-10%-15% Y-o-y: -4%-20% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2006 2007 2008 2009 2010 2011 9
  10. 10. Consumer DurablesMajor Appliances Latin AmericaEBIT (SEKm) Margin (%)  Market growth in Brazil and in600 8 the rest of Latin America 6,8500 5,7  EBIT improved to SEK 345m 6400 – Higher volumes – Negative customer mix due to300 4 consolidation of retailers200 2100 0 0 (SEKm) Q4 2011 Q4 2010 Sales 6,003 4,987 EBIT 345 337 Margin 5.7 6.8 10
  11. 11. Consumer DurablesMajor Appliances Asia/PacificEBIT (SEKm) Margin (%)  Lower sales and EBIT in300 14 Australia250 10,7 12 – Price pressure 9,7 10 – Higher costs for raw materials200 8  Southeast Asia and China150 6 – Market-share gain in strong100 markets 4 – Continued good profitability in50 2 Southeast Asia 0 0  Costs for development of new (SEKm) Q4 2011 Q4 2010 products Sales 2,180 2,069 EBIT 213 200  Non-recurring items amounted Margin 9.8 9.7 to SEK 20m Underlying EBIT* 233 200 Underlying margin* 10.7 9.7 * Excluding non-recurring items 11
  12. 12. Consumer DurablesSmall AppliancesEBIT (SEKm) Margin (%)  Higher sales400 11,2 12 10,9 – Higher volumes 10 – Improved product mix300 8  Improved underlying EBIT – Higher volumes200 6 – Improved product mix 4 – Lower prices100 – Increased costs for sourced 2 products 0 0  Non-recurring items amounted (SEKm) Q4 2011 Q4 2010 to SEK 45m Sales 2,579 2,414 EBIT 237 271 Margin 9.2 11.2 Underlying EBIT* 282 271 Underlying margin* 10.9 11.2 * Excluding non-recurring items 12
  13. 13. Professional ProductsFood-service & Laundry productsEBIT (SEKm) Margin (%)  Lower sales and EBIT for Food-400 20 service products – Lower sales in Southern Europe 14,7300 15 – Higher raw-material costs 12,0 – Price increases200 10  Lower EBIT for Laundry products100 5 – Lower volumes 0 0 (SEKm) Q4 2011 Q4 2010 Sales 1,587 1,657 EBIT* 191 243 Margin 12.0 14.7 13
  14. 14. Steel: Costs in line with 2011,majority hedgedSteel as share of total Market pricesraw-material purchases (2011) US CR USD/Short tonne 1 000 900 800 43% 700 600 500 Steel Q4 Q1 Q2 Q3 Q4 Q1 In 2011, Electrolux purchased raw materials for approximately SEK 20 billion. 2010 2011 2012 14
  15. 15. Plastics: High level of uncertainty,slight headwind expectedPlastics as share of total Market prices for plastics,raw-material purchases (2011) weighted average 280 260 29% 240 220 200 Plastics Q4 Q1 Q2 Q3 Q4 Q1 In 2011, Electrolux purchased raw materials for approximately SEK 20 billion. 2010 2011 2012 15
  16. 16. Q1 and FY 2012 y-o-yIn accordance with forward-looking statementsin the CEO letter and press release Q1 2012FY Comment Slightly Slightly Q1; Tough comparables in NA.Volumes European market continued weak negative positivePrice/Mix Positive Positive Q1; Positive price effect in NA Negative Negative Steel: FlatRaw-material costs Plastics: Some headwind SEK 100m SEK 0-500m An intensive launch period inR&D and marketing Higher Higher 2012 starting in Q1 An uncertain Egyptian marketAcquired units SEK 50-100m ~SEK 400m compensated by a strong CTI Incl. global operations, overheadCost savings ~SEK 200m ~SEK 1bn reduction and improved manufacturingTransportation and Q1; Cost increase for Higher Higher sourced productssourced products 16
  17. 17. 17
  18. 18. Factors affecting forward-looking statementsFactors affecting forward-looking statementsThis presentation contains “forward-looking” statements within the meaningof the US Private Securities Litigation Reform Act of 1995. Such statementsinclude, among others, the financial goals and targets of Electrolux forfuture periods and future business and financial plans. These statementsare based on current expectations and are subject to risks and uncertaintiesthat could cause actual results to differ materially due to a variety of factors.These factors include, but may not be limited to the following: consumerdemand and market conditions in the geographical areas and industries inwhich Electrolux operates, effects of currency fluctuations, competitivepressures to reduce prices, significant loss of business from major retailers,the success in developing new products and marketing initiatives,developments in product liability litigation, progress in achieving operationaland capital efficiency goals, the success in identifying growth opportunitiesand acquisition candidates and the integration of these opportunities withexisting businesses, progress in achieving structural and supply-chainreorganization goals. 18

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