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)

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

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7854 -0.0022 -0.28%
AUD 0.9219 -0.0010 -0.11%
EUR 0.6303 0.0005 0.08%
GBP 0.4995 0.0007 0.14%
HKD 6.0898 -0.0158 -0.26%
JPY 92.6170 -0.0300 -0.03%

Commods

Commodity Price Change Time
Gold Index 1196.6 -2.970 2014-11-26T00:
Oil Brent 79.4 -0.640 2014-11-26T00:
Oil Nymex 73.7 -0.340 2014-11-26T00:
Silver Index 16.6 0.000 2014-11-26T00:

Indices

Symbol Open High Last %
NZX 50 5455.4 5474.7 5455.4 0.28%
NASDAQ 4760.2 4788.0 4758.3 0.61%
DAX 9934.8 9992.7 9915.6 0.60%
DJI 17812.2 17833.8 17814.9 0.07%
FTSE 6729.2 6749.9 6729.2 -0.09%
HKSE 24169.8 24228.1 24112.0 -0.45%
NI225 17340.2 17389.9 17248.5 0.79%