Denmark: An ICC (International Chamber of Commerce) arbitration has been concluded in a case between MT Højgaard A/S and FLSmidth A/S dating back to 2004.
Much to the surprise of FLSmidth and contrary to expectations, the ICC arbitration award renders FLSmidth liable to pay significantly higher compensation than expected. The compensation is due for some of the costs resulting from delays at the Buxton cement plant in the UK in 2004.
According to the arbitration award, FLSmidth is to pay partial compensation plus interest, plus part of the costs of the proceedings to MT Højgaard.
The impact on FLSmidth's financial statements amounts to a net loss of Euro21.5m on EBITA and Euro16.1m on profit after tax, which will be booked in the fourth quarter of 2013. Consequently, the EBITA margin for 2013 is expected to be 3.5-4.5% rather than the previously forecast 4-5%.