In accordance with the disclosure requirements of the Stockholm Stock Exchange (Stockholmsbörsen), notice is hereby given of the decision by the Electrolux Board to re-initiate the share repurchase program.
The decision is taken in accordance with the renewed authorization granted by the Annual General Meeting of Shareholders on April 24, 2001 and provides for a possibility to purchase a further 3.16% of the total number of shares in the Company during a period until the next Annual General Meeting. Purchases may be made through transactions on the stock exchanges where Electrolux shares are quoted, at the market price prevailing at the time of the acquisition.
The share repurchase program was originally initiated in June 2000. During 2000, 25,035,000 series B shares were purchased, corresponding to 6.84% of the total number of shares (366,169,580). No shares have been purchased or sold during 2001.
The intention behind the share repurchase program is to continuously maintain a capability for adapting the capital structure to the needs of the Company, thereby contributing to increased shareholder value, or to use the repurchased shares in connection with financing of potential company acquisitions as well as for the Group’s option program.
On the basis of the Group’s financial statements for the year 2000, and the closing price of SEK 129.50 of September 11, 2001, a buy-back of 3.16% of the shares would have led to an increase in net income per share from SEK 12.40 to approximately SEK 12.70 as well as an improvement of return on equity from 17.3% to 18.1%.
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 2000, Group sales were SEK 124.5 billion and the Group had 87,000 employees. Every year, customers in more than 150 countries buy more than 55 million Group products for both consumer and professional use. The Electrolux Group includes famous appliance brands such as AEG, Electrolux, Zanussi, Frigidaire, Eureka, and Husqvarna.
For further information please contact Gösta Bonde, Deputy Treasurer, at
telephone +46 8 738 61 62 or Åsa Stenqvist, Vice President Investor
Relations, at +46 8 738 64 94. The Electrolux Press Hotline is available
at + 46 657 65 07.