Truck Maker Volvo Raises Provision for Possible EU Antitrust Fines
June 25 2016 - 02:43PM
Dow Jones News
By Matthias Verbergt
STOCKHOLM -- Swedish truck maker Volvo AB said Saturday it had
increased by more than 60% a provision for possible fines in
connection with a European Union antitrust probe.
Volvo said it had set aside EUR250 million (about $278 million)
on top of the initial EUR400 million provision it made in late
2014, adding it would book the additional amount against
second-quarter earnings.
The first provision was made in late 2014, shortly after the
European Commission, the bloc's top competition regulator, issued
formal charges against a number of heavy-truck makers, including
Volvo. The Commission has said it suspected Volvo and the other
companies of participating in an illegal cartel.
Volvo said the probe targets possible antitrust violations prior
to January 2011. At the time, the Commission made a series of
unannounced inspections of European firms in the trucks sector.
Volvo said the total provision of EUR650 million is based on the
company's best assessment of the financial impact of the
investigation at the present time.
Write to Matthias Verbergt at Matthias.Verbergt@wsj.com
(END) Dow Jones Newswires
June 25, 2016 14:28 ET (18:28 GMT)
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