electrolux ab-ser b (ELUXB) Snapshot

Electrolux has entered into a brand licensing agreement with the country's largest selling RO brand, Kent RO Systems Limited, and is set to take these water purifiers to over 150 countries across the world. Kent RO, with the Electrolux brand under license, will launch a line of high-end products for the Indian market. Under this agreement, Kent RO Systems will be manufacturing, designing and distributing the purifiers under the name of Electrolux.

Electrolux AB (OM:ELUX B) is seeking local partners in order to enter inot India's television and audio products market through brand licensing. Mathew Young, Electrolux's Global Head of Brand Licensing, told ET, "India is one market that is growing faster than those of developed economies. This represents a huge scope for us to grow the business. We want to become a full-play electronics and durable company here. The television and audio products market is indeed very tough in India with lot of competition and low margins. Still there is space to grow. We will not use the Electrolux brand for an entry into this segment, but probably something else."

Electrolux AB reported unaudited consolidated and parent company earnings results for the first quarter of March 31, 2013. For the quarter on consolidated basis, the company reported net sales amounted to SEK 25,328 million compared to SEK 25,875 million a year ago. Operating income was SEK 638 million compared to SEK 907 million a year ago. Income after financial items was SEK 483 million compared to SEK 712 million a year ago. Income attributable to equity holders of the parent company was SEK 361 million or SEK 1.26 per share compared to SEK 501 million or SEK 1.76 per share a year ago. Cash outflow from operations was SEK 2,309 million compared to cash inflow from operations of SEK 283 million a year ago. Capital expenditure in property, plant and equipment was SEK 201 million compared to SEK 45 million a year ago. Capital expenditure in product development was SEK 109 million compared to SEK 93 million a year ago. Capital expenditure in software was SEK 133 million compared to SEK 131 million a year ago. Operating cash outflow was SEK 2,847 million compared to SEK 43 million a year ago. Return on net assets was 9.3% against 14.8% a year ago. Return on equity was 9.6% against 11.6% a year ago. Net debt was SEK 12,756 million compared to SEK 9,778 million a year ago. Operating income, excluding items affecting comparability, was SEK 720 million (approximately $110 million), down 21% from SEK 907 million in the first quarter of 2012. For the quarter on parent company basis, the company reported net sales amounted to SEK 7,224 million compared to SEK 1,493 million a year ago. Operating loss was SEK 5 million compared to operating income of SEK 119 million a year ago. Income after financial items was SEK 21 million compared to SEK 124 million a year ago. Income before taxes was SEK 16 million compared to SEK 161 million a year ago. Income was SEK 9 million compared to SEK 104 million a year ago. Return on net assets was 14.8% against 13.7% a year ago. Return on equity was 14.4% against 10.4% a year ago. Net debt was SEK 10,164 million compared to SEK 10,164 million a year ago.