Electrolux will make a provision of EUR 32m (approximately SEK 290m) in the third quarter of 2003, referring to previously issued loan guarantees for launderette operators in Germany. The launderettes are experiencing financial difficulties due to weak market conditions, and Electrolux may be required to fulfill its guarantee commitments.
The launderettes are equipped with professional laundry equipment supplied by the Electrolux Group. In accordance with common business practice in this sector, Electrolux has previously provided guarantees for loans in connection with the set up of launderettes. The guarantees refer mainly to the second half of the 1990’s.