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ELECTROLUX ISSUES PRELIMINARY STATEMENT OF EARNINGS

 ELECTROLUX ISSUES PRELIMINARY STATEMENT OF EARNINGS
 STOCKHOLM, Sweden, Feb. 4 /PRNewswire/ -- The following was issued


today by Electrolux (NASDAQ: ELUXY) investor relations:
 Sales for Electrolux in 1991 according to the preliminary accounts amounted to SEK 79,100m, as against SEK 82,434m for the previous year. Sales declined by approximately 1 percent after adjustment for acquisitions and divestments.
 Operating income after depreciation declined by 20 percent to SEK 2,600m (3,248) and income after financial items declined by 27 percent to SEK 1,025m (1,409). Earnings per share after full tax amount to SEK 5.50 (10.10).
 Income for 1991 includes capital gains of approximately SEK 250m from sales of operations in the commercial services business area during the first and fourth quarters of the year. Provisions in the same amount were made during the final quarter for anticipated restructuring costs.
 Net financial items improved to SEK -1,575m (-1,839), mainly as a result of lower debt and lower USD interest rates. The corresponding figure for the previous year included a final dividend of SEK 95m from LAMCO.
 The group's tax burden increased over the previous year, as the geographic distribution of income was less favorable from a fiscal standpoint.
 Demand was considerably lower within most of the group's core business areas during 1991, in comparison with the previous year. The decline was particularly sharp on the UK and North America. An upswing was reported in some markets after the end of the war in the Persian Gulf, but demand slackened again at the end of the second quarter. An additional downturn occurred during the third quarter, primarily in the UK, the US and the Nordic countries. Demand continued to be very weak during the fourth quarter. The German market showed good growth for the year as a whole, although the growth rate was lower during the last two quarters of the year.
 The restructuring program initiated during the second half of 1990 involved the shutdown of about ten large plants and personnel cutbacks totalling about 15,000. This program has been implemented according to plan and has resulted
in an improved group structure and increased productivity. Intensified marketing activities based on new generations of products enable the group to further reinforce its market position during the year.
 Operations by business area
 Operating income declined during the year primarily for Household appliances and industrial products. A slight downturn was recorded for outdoor products.
 Divestment of operations in the commercial services business area led to lower group operating income, but this was offset by interest earned on the proceeds on these sales, which led to an improvement in net financial items.
 The decline in income for household appliances is traceable mainly to lower demand and lower operating income for most of the operations in North America, while improved operating income was reported in Europe.
 In commercial appliances, considerably lower operating income was reported for food-service equipment and industrial laundry equipment, as a result of lower demand and reduced sales volume.
 Outdoor products reported a slight decline in operating income, due mainly to a weaker market for agriculture implements.
 Industrial products reported lower operating income, traceable primarily to a sharp drop in income for Granges as a result of steadily declining metal prices and falling demand for both extruded and rolled products. Improved operating income was reported for components as well as for car safety products.
 Fourth Quarter 1991
 Sales during the fourth quarter amounted to SEK 19,320m (20,190), which represents a decline of about 1 percent after adjustment for capital gains and divestments.
 Income after financial items rose by 18 percent after adjustment for acquisitions and restructuring costs in 1991 and 1990 shown below.
 Both household appliances and outdoor products business areas reported improved operating income during the fourth quarter of 1991. However, a very weak performance by Granges led to a substantial decline in operating income for industrial products. Commercial appliances also reported a downturn.
 Operating income after depreciation amounted to SEK 482m (836) and income after financial items to SEK 135m (398). The figures for 1991 include capital gains of SEK 50m from the sale of service companies and other operations during the quarter. In addition, provisions totalling approximately SEK 250m have been made for anticipated costs of restructuring. Income for the final quarter of 1990 included a net of capital gains and restructuring costs of SEK 114m, as shown in the table below.
 Provisions refer to the shutdown of the group's cooker plant in Stechford in the UK and the transfer of production to the plant at Spennymoor. In addition, like its American competitors, the group will implement some restructuring of white-goods production in North America the light of the free-trade agreement between the US and Canada.
 Proposed Dividend for 1991
 The board intends to propose an unchanged dividend of SEK 12.50 per share at the annual general meeting. The proposal should be seen against the background of the good long-term prospects for the group's core operations, in which strong market positions have been achieved and substantial investments have been made in recent years in terms of production facilities and new generations of products. Lower capital expenditure and efficient capital management generated a positive cash flow in 1991, and an additional improvement is expected during 1992, partly as a result of the rationalization which has been implemented in recent years.
 The final consolidated accounts for 1991 will be announced on March 24, 1992. The annual general meeting will be held on May 26, 1992.
 ELECTROLUX
 Consolidated Income Statement
 (Unaudited, SEKm)
 First quarter Second quarter Third quarter
 1991 1990 1991 1990 1991 1990
 Sales 19,237 21,305 21,528 22,332 19,015 18,607
 Operating income
 after depreciation 798 908 934 986 386 518
 Income after financial
 items, before taxes 414 511 503 500 (27) 0
 The above include
 capital gains on
 major divestments 200 -- -- -- -- --
 Costs referring to
 restructuring
 program -- -- -- -- -- (114)
 Adjusted income
 after financial
 items 214 511 503 500 (27) 114
 Fourth Quarter Year
 1991 1990 1991 1990
 Sales 19,320 20,190 79,100 82,434
 Operating income after depreciation 482 836 2,600 3,248
 Income after fincl. items, before taxes 135 398 1,025 1,409
 The above include capital gains on
 major divestments 50 661 250 661
 Costs referring to restruc. program (250) (547) (250) (661)
 Adjusted income after financial items 335 284 1,025 1,409
 Sales by Business Area
 (Unaudited, in SEKm)
 Fourth quarter Year
 1991 1990 1991 1990
 Household appliances 10,948 11,025 45,441 44,890
 Commercial appliances 2,532 2,482 8,945 8,699
 Outdoor products 1,792 1,548 8,977 8,680
 Industrial products 3,728 3,975 14,472 15,822
 Commercial services 320 1,160 1,265 4,343
 Total 19,320 20,190 79,100 82,434
 Key ratios for the year: 1991 1990
 (Unaudited)
 Earnings per share after full tax(A) 5.50 10.10
 Return on equity after full tax(A)
 (as a percent) 2.4 4.3
 The total number of shares amount to 73.2 million.
 (A) -- Full tax comprise taxes paid plus deferred tax of 30 percent on allocations.
 -0- 2/4/92
 /CONTACT: Asa Mattsson of Electrolux investor relations, in Stockholm: 46-8-738-6494, or Dewe Rogerson Inc., 212-688-6840, for Electrolux/
 (ELUXY) CO: Electrolux AB ST: IN: SU: ERN KD-ST -- NY016 -- 6598 02/04/92 10:35 EST
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