Press release from Marketwire
WABCO Awarded Reimbursement of 203 Million Euros by EU General Court from EU Fine on Former Entities of American Standard Companies Inc. in Bathroom Fittings Cartel
Monday, September 16, 2013
WABCO Awarded Reimbursement of 203 Million Euros by EU General Court from EU Fine on Former Entities of American Standard Companies Inc. in Bathroom Fittings Cartel08:35 EDT Monday, September 16, 2013
BRUSSELS, BELGIUM and MOSCOW, RUSSIA--(Marketwired - Sept. 16, 2013) - WABCO Holdings Inc. (NYSE:WBC) (www.wabco-auto.com), a global technology leader and tier-one supplier to the commercial vehicle industry, today announced that the General Court of the European Union has significantly reduced a civil fine of EUR 326 million imposed by the European Commission in June 2010 ($400 million at the date of assessment) against entities representing the former American Standard Companies Inc. and certain of its former operations in Europe regarding a bathroom fittings and fixtures cartel. The General Court has reduced the fine by EUR 203 million (approximately $271 million at today's exchange rate) to EUR 123 million.
"WABCO is satisfied with the General Court's ruling in this matter," said Jacques Esculier, WABCO Chairman and Chief Executive Officer. "Indeed, we are pleased that the court has recognized our strong grounds for appeal and has decided to significantly reduce the fine."
As previously reported, WABCO filed its appeal against the European Commission's fine in the General Court of the European Union, on September 8, 2010.
Also as previously disclosed, WABCO has never manufactured or marketed any of the products that were the subject of the European Commission's investigation and no one from WABCO had any involvement with the matter. However, in connection with its spin-off from American Standard Companies Inc. in 2007, and as disclosed in WABCO's Form 10K and 10Q filings, WABCO was obliged to indemnify American Standard Companies Inc., now known as Trane Inc., and certain of its former entities involved in the Commission's investigation and related fines.
As required by its indemnification agreement with Trane, WABCO paid the full amount of the fine in September 2010 and will keep the full amount of the reimbursement.
The facts of the case are now settled. However, the European Commission has up to 2 months and 10 days from receipt of the General Court's full judgment to decide whether to appeal the decision, but only on matters of law. In any event, an appeal would not suspend payment of the reimbursement to WABCO.
WABCO (NYSE:WBC) is a leading global supplier of technologies and control systems for the safety and efficiency of commercial vehicles. Founded nearly 150 years ago, WABCO continues to pioneer breakthrough electronic, mechanical and mechatronic technologies for braking, stability and transmission automation systems supplied to the world's leading commercial truck, bus and trailer manufacturers. With sales of $2.5 billion in 2012, WABCO is headquartered in Brussels, Belgium. For more information, visit www.wabco-auto.com
This document contains certain "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995 that are based on management's good faith expectations and beliefs concerning future developments. Statements preceded by, followed by or that otherwise include the words "believes," "expects," "anticipates," "strategies," "prospects," "intends," "projects," "estimates," "plans," "may increase," "may fluctuate," and similar expressions or future or conditional verbs such as "will," "should," "would," "may" and "could" are generally forward looking in nature and not historical facts. Actual results may differ materially from these expectations as a result of many factors. These factors include, but are not limited to, the actual level of commercial vehicle production in our end markets, adverse developments in the business of our key customers, pricing changes to our supplies or products, and the other risks and uncertainties described in the "Risk Factors" section and the "Information Concerning Forward Looking Statements" section of WABCO's Form 10-K, as well as in the "Management's Discussion and Analysis of Financial Condition and Results of Operations - Information Concerning Forward Looking Statements" section of WABCO's Form 10-Q Quarterly Reports. WABCO does not undertake any obligation to update such forward-looking statements. All market and industry data are based on company estimates.
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