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