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ELECTROLUX ISSUES INTERIM REPORT

 ELECTROLUX ISSUES INTERIM REPORT
 STOCKHOLM, Sweden, Nov. 15 /PRNewswire/ -- Electrolux


(ADRs - NASDAQ: ELUXY) today issued the following interim report for January to September 1991:
 Sales for Electrolux in the first three quarters of 1991 amounted to SEK 59,780 million, as against SEK 62,244 million for the corresponding period last year. Sales declined by approximately 1 percent after adjustment for acquisitions and divestments.
 Operating income after depreciation declined by 12 percent to SEK 2,118 million (1990: SEK 2,412 million), and income after financial items declined by 12 percent to SEK 890 million (1990: SEK 1,011 million).
 Income for 1991 includes capital gains of approximately SEK 200 million referring to sales of operations in the commercial services business area during the first quarter of the year. In 1990, earnings for the third quarter included SEK 114 million in costs referring to the ongoing restructuring program.
 Net financial items improved to SEK -1,228 million (1990: SEK -1,401 million) as a result of lower debt and lower interest rates. The corresponding figure for the previous year included a final dividend of SEK 95 million from LAMCO during the first quarter.
 The geographical distribution of income was less favorable from a fiscal standpoint and involved a greater tax burden than in the previous year.
 Weaker Demand and Continuing Restructuring
 Demand in most of the group's product areas has been substantially lower in 1991 than in the previous year. The upturn that was recorded in some markets after the end of the war in the Persian Gulf slackened at the end of the second quarter. Demand continued to weaken during the third quarter, particularly in the United Kingdom, the United States, and the Nordic countries. The German market showed continued growth, but at a lower level than in previous quarters.
 The market is expected to remain weak during the rest of 1991 and the early part of 1992. If the U.S. and the U.K. economies do show increased activity the recovery will probably be weak. During the same period growth in Germany will subside. In Sweden, the sharp cutback in the construction industry is expected to accentuate the economic downturn.
 Within the group efforts to consolidate the production system and improve group structure are intensifying, particularly in anticipation of the EC market and the coming free-trade area in North America.
 In the light of anticipated market trends and the internal activities mentioned above, the group will continue to adjust capacity and implement additional restructuring.
 Operations by Business Area
 During the First Three Quarters
 Operating income for the first three quarters declined most of all in household appliances, but commercial appliances and outdoor products also reported lower income. An improvement was reported for industrial products, however.
 Divestment of operations in the commercial services business area involved a shortfall in operating income, but this was offset by interest earned on the proceeds, which led to an improvement in net financial items.
 The overall European market for white goods was largely unchanged. The market in North America showed a further decline. Total operating income for the group's white goods showed some improvement, despite the continued negative trend in the United States.
 All other operations in the household appliances business area reported lower income, primarily as a result of lower sales volume in the United States.
 In commercial appliances, sales for food-service equipment were relatively good, but income and operating margin declined as a result of the depressed market situation. Industrial laundry equipment also reported lower operating income as a result of lower sales volume in major markets, i.e. the United States, Sweden and the United Kingdom. In other operations, commercial refrigeration equipment reported unchanged income, while commercial cleaning equipment showed an improvement.
 The decline in income for the outdoor products business area is traceable mainly to lower demand and lower sales volume for garden equipment in the United States during the first half of the year. A seasonal shift generated a stronger third quarter than in the previous year. Chainsaws reported improved operating income despite negative market trends and lower sales volume.
 Granges reported considerably lower income as a result of lower aluminium prices and lower sales volume, particularly for SAPA in Sweden and the United Kingdom. The decline for Granges was more than offset by improved income for components and car safety belts.
 Sales and Income for the
 Third Quarter of 1991
 Group sales in the third quarter amounted to SEK 19,015 million (1990: SEK 18,607 million), which represents an increase of approximately 3 percent after adjustment for acquisitions and divestments.
 Operating income after depreciation amounted to SEK 386 million (1990: SEK 518 million). The corresponding figures for the previous year included the divested operations in commercial services. The group reported a loss of SEK 27 million after financial items, as against a break-even result for the third quarter of 1990.
 The decline in operating income during the quarter was again traceable for the most part to household appliances, but a downturn was reported by commercial appliances as well.
 Outdoor products showed improved operating income and somewhat higher margin. Industrial products also reported increased operating income, primarily because of improved performance by Electrolux Autoliv. Granges reported a decline in income.
 In geographical terms, operating income was unchanged in the Nordic area but was lower in the rest of Europe as well as in North America. An improvement was reported in Asia.
 ELECTROLUX
 Consolidated Income Statement
 (SEK in millions, unaudited)
 Third Quarter Nine Months Full Year
 1991 1990 1991 1990 1990
 Sales 19,015 18,607 59,780 62,244 82,434
 Operating expense -17,786 -17,239 -55,129 -57,272 -75,922
 Operating income
 before depreciation 1,229 1,368 4,651 4,972 6,512
 Depreciation according
 to plan -843 -850 -2,533 -2,560 -3,264
 Operating income
 after depreciation 386 518 2,118 2,412 3,248
 Financial items, net -413 -510 -1,228 -1,401 -1,839
 Income after financial
 items and before taxes -27 0 890 1,011 1,409
 Taxes paid and
 deferred taxes -108 -60 -501 -446 -570
 Income after taxes -135 -60 389 565 839
 Minority interests -20 -9 -55 -80 -98
 Net income -155 -69 334 485 741
 Sales by Business Area
 (SEK in millions, unaudited)
 Third Quarter Pct.
 1991 1990 Chng.
 Household appliances (A) 11,798 10,775 9
 Commercial appliances 2,039 2,018 1
 Outdoor products 1,602 1,301 23
 Industrial products 3,292 3,460 -5
 Commercial services 284 1,053 -73
 Total 19,015 18,607 2
 Nine Months Pct. Full Year
 1991 1990 Chng. 1990
 Household appliances (A) 34,493 33,865 2 44,890
 Commercial appliances 6,413 6,217 3 8,699
 Outdoor products 7,185 7,132 1 8,680
 Industrial products 10,744 11,847 -9 15,822
 Commercial services 945 3,183 -70 4,343
 Total 59,780 62,244 -4 82,434
 (A) -- Including kitchen and bathroom cabinets.
 Key Ratios
 (Unaudited)
 Third Quarter Nine Months Full Year
 1991 1990 1991 1990 1990
 For the period:
 Earnings per share
 after full tax, SEK -2.10 -0.90 4.60 6.60 10.10
 Earnings per share
 according to US GAAP, SEK -1.90 -0.70 4.80 7.40 11.20
 Annual basis (in percent):
 Return on equity after
 full tax 3 4 4
 Return on net assets 7 8 8
 Earnings per share have been computed after final conversion of all outstanding debentures, i.e. on the basis of 73.2 million shares.
 -0- 11/15/91
 /CONTACT: Asa Mattsson of Electrolux, in Sweden, 011-468-738-6494; or Fern Lazar or Debra Wasser of Dewe Rogerson, in New York, 212-688-6840, for Electrolux/
 (ELUXY) CO: Electrolux ST: IN: SU: ERN GK-TO -- NY012 -- 1427 11/15/91 10:06 EST
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Date:Nov 15, 1991
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