Business News

Arbitration proceedings against BouMatic

Monday 30. March 2009 - New cost-cutting measures

The International Court of Arbitration has ruled the claim submitted against Punch Graphix nv (‘Punch Graphix’) in the context of the ongoing proceedings regarding the sale of the Gascoigne Melotte business unit (conventional milking systems) to BouMatic partly admissible. The ruling awards compensation to BouMatic, including costs of the proceedings and interests. As a result, the total cost for Punch Graphix of this decision amounts to approximately 3.3 million euros. The group currently investigates the possibilities to have this decision reconsidered. According to IAS 10 the decision constitutes an adjusting post-balance sheet event, requiring the recording of an additional provision of 600,000 euros. The revised results for 2008 are included as an annexe to this press release.

In anticipation of an expected drop in 2009 sales as a result of the current economic circumstances, Punch Graphix has decided to implement a new cost-cutting programme. These new cost-cutting measures encompass, among others, the centralisation of a number of activities and will give rise to a non-recurring cost of approximately 3 million euros. The Group is of the opinion that in doing so it has adapted the future cost structure to the recent developments in the market.