BAM takes exceptional charge of €40 million for settlement of building sector affair
Bunnik, Netherlands, 24 January 2005 – Based on the final guidelines for the calculation of the fines for individual companies in the Dutch civil engineering sector which were released earlier today, BAM has made an estimate of the total amount involved for the Group and will take a provision for this amount.
Moreover, BAM will take a provision for the fines that NMa (Netherlands Competition Authority) expects to impose later this year for infringements in other sectors. For the calculation of the latter, BAM is assuming that the NMa will use criteria comparable to those used in the civil engineering sector.
A provision will also be taken to cover any fines imposed in connection with the bitumen market.
As stated earlier, Royal BAM Group takes a positive stance on a possible gesture towards several government bodies who have filed civil claims, even though BAM does not admit to any damages. Also for this situation, a provision will be taken.
For all the cases mentioned above, Royal BAM Group will take an exceptional charge in the 2004 accounts for a total amount of €40 million. As stated earlier, the Group has taken an exceptional charge of €27.4 million in the 2003 accounts.
Royal BAM Group has done everything in its power to help the NMa conduct its investigation, and on previous occasions has already expressed its regret that not all of its business units complied with the amended competition regulations that were introduced in 1992. Since late 2001, the Group has made every effort to firmly anchor proper business practices – also relating to competition issues – at all levels of the company. The provision that is currently formed is seen as an important step towards a final settlement of all cases relating to the building sector affair dating from the period prior to the end of 2001. The Executive Board have expressed their belief that, now that the house has been set in order, the Group will soon regain the confidence of its clients, shareholders and construction partners.
Further information:
press: A.C. Pronk, +31 (0)30 659 86 21;
analysts: P. Verbraeken, +31 (0)30 659 88 56.