Electrolux First Quarter Report, 2003


STOCKHOLM, Sweden, April 22, 2003 (PRIMEZONE) -- Electrolux (Nasdaq:ELUX)


 Consolidated income statement, SEKm        
                           First quarter   First quarter   Full Year
                               2003              2002         2002
  Net sales                      32,062         33,580        133,150
 Cost of goods sold             -24,512        -25,948       -101,705
 Selling expense                 -4,217         -4,204        -17,738
 Administrative expense          -1,478         -1,451         -5,405
 Other operating income/expense     -57            -71           -137
 Items affecting comparability        -          1,885           -434
 Operating income*                1,798          3,791          7,731
 Margin, %                          5.6            11.3           5.8
 Financial items, net               0             -109           -186
 Income after financial items     1,798          3,682          7,545
 Margin, %                         5.6             11.0          5.7
 Taxes                             -556           -726         -2,459
 Minority interests in net income     4              6              9
 Net income                       1,246          2,962          5,095
 * Including depreciation and      -854         -1,006         -3,854
 amortization in the amount of:
 Net income per share basic and   3.95           9.00          15.60
  diluted, SEK
 Number of shares after buy backs,
  million                          315.6         329.6         318.3
 Average number of shares after
  buy backs,                       316.2         329.6         327.1
   million

 Consolidated balance sheet, SEKm     
                                    March 31   March 31   Full year
                                      2003       2002      2002
 Assets
 Fixed assets                       27,418     30,925    27,698
 Inventories, etc                   16,731     18,258    15,614
 Accounts receivab                  27,455     27,799    22,484
 Other receivables                   5,891      8,115     5,328
 Liquid funds                        11,324     10,282    14,300
 Total assets                        88,819     95,379    85,424
 Equity and liabilities
 Shareholders' equity                28,453     30,913    27,629
 Minority interests                     572        671       592
 Interest-bearing liabilities and    16,724     22,117    15,698
 provisions
 Non-interest-bearing liabilities
  and                                43,070     41,678    41,505
 provisions
 Total equity and liabilities        88,819     95,379    85,424
 Contingent liabilities               1,117      1,462       949



 Change in equity, SEKm             First       First    Full
                                   quarter     quarter    year
                                    2003        2002    2002

 Opening balance                   27,629      28,864  28,864
 Dividend payment                       -           -  -1,483
 Repurchase of shares                -373           -  -1,703
 Minimum liability US pensions          -           -  -1,335
 Translation differences etc.         -49        -913  -1,809
 Net income                         1,246       2,962   5,095
 Closing balance                   28,453      30,913  27,629 


 Consolidated cash-flow statement, SEKm      
                                       First     First     Full
                                       quarter   quarter     year
                                         2003      2002     2002
 Operations
 Income after financial items           1,798     3,682    7,545
 Depreciation and amortization            854     1,006    3,854
 Provisions and capital gains/losses     -528    -3,114   -1,272
 Taxes paid                              -214      -220   -1,027
 Changes in operating assets and
 liabilities
     Change in inventories             -1,202    -1,901     -706
     Change in accounts receivable     -5,073    -4,562       28
     Change in other current assets      -621       -99      832
     Change in current liabilities      1,760     2,416    1,651
       and provisions
 Cash flow from operations             -3,226    -2,792   10,905

 Investments
 Acquisition and divestment of              -     2,397    2,229
 operations
 Capital expenditure in tangible         -625      -746   -3,335
 fixed assets
 Capitalization of product                -50       -80     -195
 development and software
 Other                                     56       222      290
 Cash flow from investments              -619     1,793   -1,011
 Dividend                                   -         -   -1,483
 Repurchase of shares                    -373         -   -1,703
 Cash flow after dividends             -4,218      -999    6,708

 Change in interest-bearing             1,301      -849   -4,157
 liabilities

 Total cash flow                       -2,917    -1,848    2,551
 Liquid funds at beginning of year     14,300    12,374   12,374
 Exchange-rate differences
   referring to liquid funds              -59      -244     -625
 Liquid funds at end of period         11,324    10,282   14,300 

 Change in net borrowings
 Total cash flow excl. change in       -4,218      -999    6,708
 loans
 Net borrowings at beginning of year   -1,398   -10,809  -10,809
 Exchange-rate differences referring
 to                                       216       -27    2,703
   net borrowings
 Net borrowings at end of period       -5,400   -11,835   -1,398 


 Net sales by business              First     First      Full
  area, SEKm                       quarter   quarter      year
                                    2003      2002      2002
 Consumer Durables

 Europe                            11,987    11,241    48,250
 North America                     12,028    13,284    48,450
 Rest of the world                  2,908     3,437    14,820
 Total Consumer Durables           26,923    27,962   111,520

 Professional Products
  Indoor                            2,165     3,029    10,887
 Outdoor                            2,950     2,547    10,597

 Total Professional                 5,115     5,576    21,484
  Products

 Other                                 24        42       146
 Total                             32,062    33,580   133,150


 Operating income by business       First     First     Full
 area, SEKm                       quarter   quarter     year
                                    2003      2002     2002
 Consumer Durables
 Europe                               710       676    3,265

 Margin, %                            5.9       6.0      6.8
 North America                        798       876    3,271
 Margin, %                            6.6       6.6      6.8
 Rest of the world                   -120       -22       51
 Margin, %                           -4.1      -0.6      0.3
 Total Consumer Durables            1,388     1,530    6,587
 Margin, %                            5.2       5.5      5.9

 Professional Products

 Indoor                               138       183      753
 Margin, %                            6.4       6.0      6.9
 Outdoor                              442       386    1,508
 Margin, %                           15.0      15.2     14.2


 Total Professional                   580       569    2,261

 Products
 Margin, %                           11.3      10.2     10.5

 Common Group costs, etc.            -170      -193     -683
 Items affecting                        -     1.885     -434
 comparability 
 Total                              1,798     3,791    7,731


  Value creation, SEKm                First     First      Full
                                  quarter   quarter      year
                                     2003      2002      2002
 Consumer Durables

 Europe                                435       374     2,099
 North America                         326       307     1,170
 Rest of the world                    -333      -346    -1,011
 Total Consumer                        428       335     2,258
 Durables

 Professional Products

 Indoor                                 81        31       291
 Outdoor                               297       288     1,090
 
 Total Professional                    378       319     1,381

 Products
 Common Group costs,                   -75       -45      -178
  etc.
 Total                                 731       609     3,461


 Key ratios           First      First   First quarter   Full Year
                      quarter    quarter    2002,  
                      2003       2002     excl. items       2002
                                          affecting
                                          comparability
 
 Net income per share,     3.95       9.00           3.75     15.60
 SEK1)
 Return on equity, % 2)    17.8       39.6           16.4      17.2
 Return on net assets,     23.8       39.3           19.1      22.1
  % 3)
 Net debt/equity ratio 4)  0.19       0.37           0.37      0.05
 Capital expenditure,       625        746            746     3,335
 SEKm
 Average number of        80,329     84,474         84,474    81,971
 employees
 
 1) Average number of shares for the first quarter after buy-backs
    is 316.2 (329.6) million.
 2) Annualized net income, expressed as a percentage of average 
    equity.
 3) Annualized operating income, expressed as a percentage of 
    average net
    assets.
 4) Net borrowings, i.e. interest-bearing liabilities less liquid
    funds, in relation to adjusted equity. The latter is defined
    as equity including minority interests.
 
 
 Exchange rates in SEK      First      First       Full
                          quarter    quarter  year 2002
                             2003       2002
 
 USD, average                8.57      10.51       9.72
 USD, end of period          8.51      10.35       8.78
 EUR, average                9.19       9.16       9.15
 EUR, end of period          9.28       9.03       9.16
 GBP, average               13.76      14.98      14.58
 GBP, end of period         13.45      14.74      14.09
 
 Quarterly figures                                                   
 
 Net sales and income,                                               
 per quarter
                                   1st    2nd    3rd   4th   Full 
                                   qtr    qtr    qtr   qtr   Year

 
 Net sales, SEKm   2003         32,062                              
                   2002         33,580 37,224 31,760  30,586  133,150
 Operating income, SEKm  2003   1,798                              
            Margin,%             5.6                              
                   2002         3,791  2,722 1,781    -563    7,731
            Margin,%             11.3    7.3   5.6    -1.8      5.8
                   2002 1)       1,906  2,722 1,756   1,781    8,165
            Margin, %             5.7    7.3   5.5     5.8      6.1
 Income after financial  2003    1,798                              
 items, SEKm
            Margin,%              5.6                              
                   2002          3,682  2,694 1,728    -559    7,545
            Margin,%              11.0    7.2   5.4    -1.8      5.7
                   2002 1)       1,797  2,694 1,703   1,785    7,979
            Margin, %             5.4    7.2   5.4     5.8      6.0
 Net income, SEKm  2003          1,246                              
                   2002          2,962  1,850 1,239    -956    5,095
                   2002 1)       1,228  1,850 1,222   1,221    5,521
 Net income per share,
                   2003           3.95                              
  SEK              2002           9.00   5.60  3.80   -2.80    15.60
                   2002 1)        3.75   5.60  3.75    3.80    16.90
 Value creation, 
    SEKm           2003           731                              
                   2002           609  1,475   636     741    3,461
 
 1) Excluding items affecting comparability, which in 2002 amounted
    to SEK -434m.
 
 Net sales by business area, per                                     
 quarter, SEKm
 
 Consumer Durables               1Q    2Q   3Q   4Q   Full Year
  Europe              2003      11,987                              
                      2002      11,241 11,896 12,605  12,508  48,250
 North America        2003      12,028                              
                      2002      13,284 15,090 10,876   9,200  48,450
 Rest of the world    2003       2,908                              
                      2002       3,437  4,257  3,332   3,794  14,820
 Total Consumer 
  Durables            2003      26,923                              
                      2002      27,962 31,243 26,813  25,502 111,520
 Professional 
  Products,           2003      2,165                              
 Indoor
                      2002      3,029  3,032  2,192   2,634  10,887
 Professional Products,
                      2003      2,950                              
 Outdoor
                      2002       2,547  2,907  2,720   2,423  10,597
 Total Professional   2003       5,115                              
 Products             2002       5,576  5,939  4,912   5,057  21,484
 
 Operating income by business area, per quarter, SEKm

 Consumer Durables             1Q     2Q   3Q    4Q   Full Year
 Europe      2003              710                            
             Margin,%          5.9                            
             2002              676   819     828    942  3,265
             Margin,%          6.0   6.9     6.6    7.5    6.8
 North America
             2003              798                            
            Margin,%          6.6                            
            2002              876 1,338     577    480  3,271
            Margin,%          6.6   8.9     5.3    5.2    6.8
 Rest of the world     
            2003             -120                            
            Margin,%         -4.1                            
            2002              -22    98     -41     16     51
            Margin,%         -0.6   2.3    -1.2    0.4    0.3
 Professional Products,
            2003              138                            
 Indoor
            Margin,%          6.4                            
            2002              183   214     197    159    753
            Margin,%          6.0   7.1     9.0    6.0    6.9
 Professional Products, 
            2003              442                            
 Outdoor
            Margin,%         15.0                            
            2002              386   435     356    331  1,508
            Margin,%         15.2  15.0    13.1   13.7   14.2
 Common Group costs, 
            2003             -170                            
  etc.
            2002             -193  -182    -161   -147   -683
 Items affecting
            2003                -                            
 comparability
            2002            1,885     -      25 -2,344   -434


 Five-year review
  Amounts in SEKm, unless   2002    2001   2000     1999     1998
  otherwise stated   
 Net sales            133,150 135,803 124,493  119,550  117,524
 Operating income        7,731   6,281  7,602    7,204    7,028
 Margin, %                5.8     4.6    6.1      6.0      6.0
 Margin, excluding items  6.1     4.7    6.5      6.2      5.2
 affecting comparability,
  %
 Income after financial 
  items                   7,545   5,215  6,530    6,142    5,850
 Margin, %                5.7     3.8    5.2      5.1      5.0
 Margin, excluding items  6.0     3.9    5.6      5.3      4.2
 affecting comparability, %
 Net income               5,095   3,870  4,457    4,175    3,975
 Net income per share, SEK 
                         15.60   11.35  12.40    11.40    10.85
 Average number of 
  shares                 327.1   340.1  359.1    366.2    366.2
  after buy-backs, million
 Dividend, adjusted for 
  share                    6.00 1)  4.50  4.00    3.50     3.00
 issues
 Value creation          3,461     262  2,423    1,782      437
 Return on equity, %      17.2    13.2   17.0     17.1     18.2
 Return on net assets, %  22.1    15.0   19.6     18.3     17.5
 Net debt/equity ratio     0.05    0.37   0.63     0.50     0.71
 Capital expenditure      3,335   4,195  4,423    4,439    3,756
 Average number of 
  employees              81,971  87,139 87,128   92,916   99,322
 
 1) Proposed by the Board.

Definitions

Capital indicators

Annualized sales In computation of key ratios where capital is relatedto net sales, the latter are annualized and convertedat year-end exchange rates and adjusted for acquiredand divested operations.

Net assets Total assets, excluding liquid funds, interest-bearing financial receivables, as well as non-interesting-bearing liabilities and provisions.

Adjusted equity Equity, including minority interests.

Working capital Net assets less fixed assets and deferred taxassets/liabilities.

Net borrowings Total interest-bearing liabilities less liquid funds.

Net debt/equity Net borrowings in relation to adjusted equity.ratio Equity/assets Adjusted equity as a percentage of total assets lessratio liquid funds.

Other key ratios

Net income per Net income divided by the average number of sharesshare after buy-backs.

Operating cash Total cash flow from operations and investments,flow excluding acquisition and divestment of operations.

Operating margin Operating income expressed as a percentage of netsales.

Value creation Operating income excluding items affectingcomparability less the weighted average cost ofcapital (WACC) on average net assets excluding itemsaffecting comparability. (Net sales - operatingcosts = operating income) - (WACC x Average netassets). The WACC for 2003 and 2002 was 13% beforetax. The WACC for previous periods was 14% beforetax.

Return on equity Net income expressed as a percentage of averageequity.

Return on net Operating income expressed as a percentage of averageassets net assets.

This report has not been audited.


 Financial reports in 2003
 Quarterly report, 2nd quarter      July 17
 Quarterly report, 3rd quarter      October 21

Financial information from Electrolux is also available on www.electrolux.com/ir

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