Press release from Marketwire
WABCO Confirms Closure of Case of Appeal Arising from EU Fine on Former Entities of American Standard Companies; Retains Reimbursement of 206 Million Euros Awarded by EU General Court
Monday, December 02, 2013
WABCO Confirms Closure of Case of Appeal Arising from EU Fine on Former Entities of American Standard Companies; Retains Reimbursement of 206 Million Euros Awarded by EU General Court07:00 EST Monday, December 02, 2013
BRUSSELS, BELGIUM--(Marketwired - Dec. 2, 2013) - WABCO Holdings Inc. (NYSE:WBC) (www.wabco-auto.com), a global technology leader and tier-one supplier to the commercial vehicle industry, today confirmed that the period for appeal has expired - and no appeal has been filed by the European Commission - regarding the EU General Court's recent ruling to significantly reduce a civil fine of EUR 326.1 million imposed by the European Commission in June 2010 (approximately $400 million at the date of assessment). The original fine was imposed on entities representing the former American Standard Companies Inc. and certain of its former operations in Europe involving a bathroom fittings and fixtures cartel. On September 16, 2013, the General Court reduced the fine by EUR 205.8 million to EUR 120.3 million.
As previously reported, WABCO was awarded its EUR 205.8 million reimbursement based on WABCO's initial appeal against the European Commission's fine.
"WABCO remains satisfied with the General Court's ruling in this matter, and we note that the European Commission has not filed an appeal within the legally required period," said Jacques Esculier, WABCO Chairman and Chief Executive Officer. "Indeed, we are pleased that this case is now closed."
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, which was paid in October 2013 by the European Commission.
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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