European Commission Fine - Automotive Products Glass Sector
NSG Group. (“the Company”) confirms that, as stated in the Commission's press release dated 12th November 2008, the European Commission has announced a decision to levy a civil fine of Euro 370 million (approximately JPY 45 billion) against Pilkington Group Limited (“Pilkington”), a subsidiary of the Company.
The fine follows an investigation, previously announced, into a number of glass manufacturers in the European Automotive glass sector, including Pilkington, relating to infringement of competition rules.
The company will examine the decision and decide on future action, including a possible appeal.
2. Impact upon the operation
As announced on 22 May 2007, the Company has previously made a provision for this fine. The provision previously held (approximately GBP 250 million) will be updated to reflect the value of the fine as notified.
This will result in a loss of JPY8.9 billion being recognized as an extraordinary item in the income statement for the second quarter of the year to 31 March 2009.
Consequently, the Company is reviewing its first half financial results and full year results outlook for the year ending 31 March 2009, to take account of this development. If any revision is necessary, it will be announced as soon as it is concluded.