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.
This article is tagged with the following keywords. Find out more about MyNBR Tags
Most listened to
- Damien Grant on a disturbing trend in the insolvency game
- Westland Milk chairman Matt O’Regan says the co-op's performance in the 2015/16 season was "less than desirable"
- Airwork’s Hugh Jones on his reasons for selling
- John Key warns "Hobson Pledge" group similar to Trump
- Massey University's David Tripe talking about ANZ's exposure to Pumpkin Patch