Decision received in litigation on pension commitments in the U.S.
Decision received in litigation on pension commitments in the U.S. In August, 1999 the Electrolux US subsidiary White Consolidated Industries Inc. (WCI), appealed a decision that was rendered by a U.S. district court in Pennsylvania, USA in litigation on pension commitments. The U.S. Court of Appeals for the Third Circuit has confirmed the district court's decision by an opinion filed June 15, 2000. WCI has not yet decided whether to appeal the decision further. Already in the third quarter of 1999, in accordance with applicable accounting standards, Electrolux made a non-cash pre-tax provision of USD 225 million (SEK 1,841m). The after-tax charge was USD 140 million (SEK 1,141 m). The amount of the liability is the subject of a separate administrative proceeding that is still in progress. The plaintiff is a government agency, the Pension Benefit Guaranty Corporation (PBGC), which is responsible for the payment of defaulting pension obligations. Electrolux is the world's largest producer of powered appliances for kitchen, cleaning and outdoor use, such as refrigerators, washing machines, cookers, vacuum cleaners, chain saws, lawn mowers, and garden tractors. In 1999, Group sales were SEK 120 billion and the Group had 93,000 employees. Every year, customers in more than 150 countries buy more than 55 million Electrolux Group products for both consumer and professional use. The Electrolux Group includes famous appliance brands such as AEG, Zanussi, Frigidaire, Eureka, and Husqvarna. The Electrolux Press Hotline: +46 8 657 65 07. For cancellation of or changes to this fax distribution service, please return this document, with your name, company, and fax number, stating what you want to change, to fax no +46 8 738 74 61. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/06/19/20000619BIT00920/bit0001.doc http://www.bit.se/bitonline/2000/06/19/20000619BIT00920/bit0002.pdf