Amount in line with previously communicated expectations, included in provisions for the fourth quarter of 2008
The US Department of Justice and the Trelleborg Group companies concerned have reached agreements in the previously announced competition investigations regarding certain types of marine oil hoses and marine fenders. These investigations commenced in 2007 and 2005 respectively and Trelleborg has been awaiting a decision from the authorities for a lengthy period.
The size of the fine is in line with the overall expectations Trelleborg communicated in connection with the European Commission’s decision in January 2009.
The agreements entail that the two Group subsidiaries in question shall pay a combined fine of USD 11 M to the US authorities. The agreements are to be approved in court. The Group’s French subsidiary concerned has previously paid close to USD 2 M in damages to aggrieved customers as settlement of a class action, which concerned Trelleborg and other companies, for alleged illegal price fixing concerning marine oil hoses. These fines and expenses were accounted for in the SEK 416 M provision charged to the fourth quarter of 2008*.
* The competition situation regarding certain types of marine oil hoses was also investigated by the European Commission, which announced a decision in the matter on January 28, 2009 and established the amount of the fine at EUR 24.5 M for the subsidiary concerned. Trelleborg has appealed this decision to the First Instance of the European Court of Justice. It is not currently possible to estimate when the court could make a decision on the appeal.
In light of the European Commission’s ruling, Trelleborg made a downward adjustment of the level of the previously announced total cost assessment in January of 2009. In addition to the SEK 100 M which had already been charged against Trelleborg’s earnings, all additional costs related to the competition infringements were estimated to amount to about SEK 400 M. This included EU fines and fines and expenses in the US and other countries concerned as well as damages and representation expenses. As a result, SEK 416 M was included in the costs affecting comparability in the fourth quarter of 2008, which was announced in the year-end report on February 11, 2009.
Trelleborg is a global engineering group whose leading positions are based on advanced polymer technology and in-depth applications know-how. Trelleborg develops high-performance solutions that seal, damp and protect in demanding industrial environments. The Trelleborg Group had annual sales in 2008 of approximately SEK 31 billion, with about 23,000 employees in approximately 45 countries. The Group comprises four business areas: Trelleborg Engineered Systems, Trelleborg Automotive, Trelleborg Sealing Solutions and Trelleborg Wheel Systems. The Trelleborg share has been listed on the Stockholm Stock Exchange since 1964 and is listed on the OMX Nordic List, Large Cap. www.trelleborg.com
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This information is such that Trelleborg AB (publ) must disclose in accordance with the Swedish Securities Market Act and/or the
Financial Instruments Trading (Market Abuse Penalties) Act. This information was submitted for disclosure on April 20, 2009, 23:00 CET