Financial history

90 years have passed since Electrolux was founded. Axel Wenner-Gren, the founding father of Electrolux, established the principles by which the company still thrives.

He was a visionary who helped to develop products of the future by understanding the needs of people and not submitting to challenges. His dream to improve quality of life has had fundamental impact on homes around the world.

Founding

1910 Electrolux was incorporated as Elektromekaniska AB.

1919 Elektromekaniska AB merged with Swedish AB Lux, and Aktiebolaget Electrolux was established. Electrolux led the development of the modern canister-type vacuum cleaner and the absorption refrigerator during the early part of the 20th century.

Stock exchange listing

1928 Electrolux was introduced on the London Stock Exchange. The Group had five plants,approximately twenty subsidiaries and 250 offices throughout the world, and a total turnover of SEK 70 million.

1930 Electrolux was listed on the Stockholm Stock Exchange. In 1987, trading of American Depositary Receipts, ADRs, representing Electrolux B-shares started on the NASDAQ National Market.

Expansion

1933 Vacuum cleaner production began in Old Greenwich, Connecticut, USA, and the first air-cooled refrigerator was produced.

1960’s Electrolux initiated the restructuring of the fragmented Western European white goods industry. In 1968, the minority interest (39%) in Electrolux Corp., USA was sold to Consolidated Food for almost SEK 300 million. The cash generated provided Electrolux with the key to future expansion.

1984 Italian company Zanussi, including subsidiaries in Spain, was acquired, making Electrolux a leader in the European household appliances market and in the food service equipment market.

1986 WhiteConsolidated Inc, the third largest white goods company in the United States with brands such as Frigidaire, Gibson, Kelvinator and White Westinghouse, was acquired.

1986-89 The Outdoor Products business area expanded with the 1986 acquisition of the U.S. company Poulan/Weed Eater and the 1989 acquisition of the outdoor power products business of the Roper Corporation.

Strengthening core business

1990′s The European expansion continued with the 1994 purchase of the white-goods division of German AEG. Restructuring programs and other measures were implemented to improve profitability, e.g. a two-year restructuring program in 1997, beginning with the divestment of the industrial products sector, as well as the sewing machines, agricultural implements and interior decoration equipment operations. In 1998 the core business comprised Household Appliances, Professional Appliances and Outdoor Products, and Annual Group Sales had grown to SEK 117 billion.

2000 Electrolux AB re-acquired the trademark and company name “Electrolux” in North America, and thereby gained global control of the company name and the Group’s most important brand.

2001-02 The household division of the Australian company Email Ltd, was acquired in 2001. During 2001 and 2002 two restructuring programs were implemented throughout the Group, with divestments of non-core business, productivity improving measures, cost cutting, consolidation of production, rationalization of sales and marketing, write-downs of assets and personnel cutbacks.

2003-04 The consolidation of brands, with Electrolux as main brand, accelerated and a consumer insight driven product development process was initiated. The group re-introduced the Electrolux brand in USA with vacuum cleaners in 2003 followed by high-end white goods in 2004. During 2003 and 2004 relocation of manufacturing to low cost countries, e.g. to Eastern Europe, South-East Asia and Mexico, accelerated.

In February 2005, the Board of Electrolux decided that the Group´s Outdoor Products operation would be spun off as a separate company and distributed to Electrolux shareholders. The AGM in 2006 decided that all shares in the wholly owned subsidiary Husqvarna AB should be distributed, and that each share in AB Electrolux entitled the owner to one share in Husqvarna AB. Owners of series A shares in AB Electrolux received series A shares in Husqvarna AB, and owners of series B shares received series B shares in Husqvarna AB, June 7, 2006, was the last trading day of the Electrolux-share including entitlement to dividend of shares in Husqvarna AB.

2006-09 The Group continues the efforts to transform Electrolux into an innovative, consumer-focused company. Comprehensive launches of new products under the Electrolux brand were implemented in Europe in 2007 and in the US 2008. Plant closures and cutbacks are initiated and manufacturing is relocated to Eastern Europe, South-East Asia and Mexico.

Today the Electrolux Group Electrolux is a global leader in home appliances and appliances for professional use, selling more than 40 million products to customers in 150 countries every year. The company focuses on innovative products that are thoughtfully designed, based on extensive consumer insight, to meet the real needs of consumers and professionals. Electrolux products include refrigerators, dishwashers, washing machines, vacuum cleaners, cookers and air-conditioners sold under esteemed brands such as Electrolux, AEG, Eureka and Frigidaire. In 2010, Electrolux had sales of SEK 106 billion and 52,000 employees.