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

Wednesday 25th June 2014

Skellerup Holdings 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.co.nz

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