WABCO Awarded Reimbursement of 203 Million Euros by EU General Court from EU
Fine on Former Entities of American Standard Companies Inc.
in Bathroom Fittings Cartel
BRUSSELS, BELGIUM and MOSCOW, RUSSIA -- (Marketwired) -- 09/16/13 --
WABCO Holdings Inc. (NYSE:WBC) (www.wabco-auto.com), a global
technology leader and tier-one supplier to the commercial vehicle
industry, today announced that the General Court of the European
Union has significantly reduced a civil fine of EUR 326 million
imposed by the European Commission in June 2010 ($400 million at the
date of assessment) against entities representing the former American
Standard Companies Inc. and certain of its former operations in
Europe regarding a bathroom fittings and fixtures cartel. The General
Court has reduced the fine by EUR 203 million (approximately $271
million at today's exchange rate) to EUR 123 million.
"WABCO is satisfied with the General Court's ruling in this matter,"
said Jacques Esculier, WABCO Chairman and Chief Executive Officer.
"Indeed, we are pleased that the court has recognized our strong
grounds for appeal and has decided to significantly reduce the fine."
As previously reported, WABCO filed its appeal against the European
Commission's fine in the General Court of the European Union, on
September 8, 2010.
Also as previously disclosed, WABCO has never manufactured or
marketed any of the products that were the subject of the European
Commission's investigation and no one from WABCO had any involvement
with the matter. However, in connection with its spin-off from
American Standard Companies Inc. in 2007, and as disclosed in WABCO's
Form 10K and 10Q filings, WABCO was obliged to indemnify American
Standard Companies Inc., now known as Trane Inc., and certain of its
former entities involved in the Commission's investigation and
As required by its indemnification agreement with Trane, WABCO paid
the full amount of the fine in September 2010 and will keep the full
amount of the reimbursement.
The facts of the case are now settled. However, the European
Commission has up to 2 months and 10 days from receipt of the General
Court's full judgment to decide whether to appeal the decision, but
only on matters of law. In any event, an appeal would not suspend
payment of the reimbursement to WABCO.
WABCO (NYSE:WBC) is a leading global supplier of technologies and
control systems for the safety and efficiency of commercial vehicles.
Founded nearly 150 years ago, WABCO continues to pioneer breakthrough
electronic, mechanical and mechatronic technologies for braking,
stability and transmission automation systems supplied to the world's
leading commercial truck, bus and trailer manufacturers. With sales
of $2.5 billion in 2012, WABCO is headquartered in Brussels, Belgium.
For more information, visit www.wabco-auto.com
This document contains certain "forward-looking statements" as
defined by the Private Securities Litigation Reform Act of 1995 that
are based on management's good faith expectations and beliefs
concerning future developments. Statements preceded by, followed by
or that otherwise include the words "believes," "expects,"
"anticipates," "strategies," "prospects," "intends," "projects,"
"estimates," "plans," "may increase," "may fluctuate," and similar
expressions or future or conditional verbs such as "will," "should,"
"would," "may" and "could" are generally forward looking in nature
and not historical facts. Actual results may differ materially from
these expectations as a result of many factors. These factors
include, but are not limited to, the actual level of commercial
vehicle production in our end markets, adverse developments in the
business of our key customers, pricing changes to our supplies or
products, and the other risks and uncertainties described in the
"Risk Factors" section and the "Information Concerning Forward
Looking Statements" section of WABCO's Form 10-K, as well as in the
"Management's Discussion and Analysis of Financial Condition and
Results of Operations - Information Concerning Forward Looking
Statements" section of WABCO's Form 10-Q Quarterly Reports. WABCO
does not undertake any obligation to update such forward-looking
statements. All market and industry data are based on company
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