Report by the President and CEO « Previous page   Next page » Within floor-care products, over the past four years we achieved average annual growth of 9% in sales and 24% in operating income. During this period the return on net assets rose from 17% to 29%. Value creation improved from a negative figure in 1998 to about half a billion SEK in 2001. We were able to achieve this by driving down costs in production and distribution, and increasing our investments in product development and marketing. The production structure was streamlined by reducing the number of plants from twelve to six. We also changed our organization, making regional managers fully responsible for their operations, simultaneously establishing global processes for e.g. brands and purchasing. In terms of brands, we decided to focus on Electrolux outside North America, and achieved a significant increase in market share for this brand.       We also strengthened the product-development process, and launched a number of new, innovative models. These included Oxygen in Europe as well as a series of bagless vacuum cleaners for the premium segment of the US market. New, innovative products, strong brands and efficient handling of the demand flow have strengthened our relations with retailers. On the basis of our leading position in the global market for floor-care products, we are now working on improving customer relations through even better product offerings and services. Strict cost control and a focus on marketing and innovation now comprise the foundation of our culture within floor-care.   « Previous page   Next page » Print