Skellerup pays 'net' $1.58m to settle suit over pipe seals

David Mair, Skellerup Chief Executive
Skellerup Holdings 12-month price history (NZX.com)

Skellerup Holdings [NZX: SKL] said it has settled an historic claim with Marley New Zealand over faulty seals supplied for irrigation systems, with a net after-tax impact on the rubber goods and farm equipment of $1.58 million.

The company said it doesn't admit liability in the settlement but had opted to avoid costs of a High Court trial.

The cost of the settlement would be shaved off previous guidance of $22 million to $24 million this year, excluding the impact of insurance proceeds in March and earthquake related costs.

The dispute involves subsidiary Skellerup Rubber Services, which was sued for some $7.3 million in damages after supplying pipe seals Marley argued didn't meet Australian and New Zealand standards and weren't watertight. Skellerup had denied the claims.

Skellerup shares were unchanged at $1.76 and have gained 1.7 percent this year.

(BusinessDesk)


Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

NZ Market Snapshot

Forex

Sym Price Change
USD 0.6692 0.0000 0.00%
AUD 0.9312 0.0000 0.00%
EUR 0.6023 0.0000 0.00%
GBP 0.4576 0.0000 0.00%
HKD 5.1986 0.0000 0.00%
JPY 73.7220 0.0000 0.00%

Commods

Commodity Price Change Time
Gold Index 1212.7 -6.530 2016-05-27T00:
Oil Brent 50.0 -0.220 2016-05-27T00:
Oil Nymex 49.3 -0.150 2016-05-27T00:
Silver Index 16.3 -0.070 2016-05-27T00:

Indices

Symbol Open High Last %
NZX 50 6948.8 6996.2 6947.9 0.64%
NASDAQ 4904.1 4933.5 4901.8 0.65%
DAX 10257.9 10298.8 10272.7 0.13%
DJI 17826.8 17873.2 17828.3 0.25%
FTSE 6265.6 6275.9 6265.6 0.08%
HKSE 20425.0 20620.2 20397.1 0.88%
NI225 16830.5 16901.1 16772.5 0.37%
ASX 5388.1 5427.7 5388.1 0.33%