Settlement with National Road Administration regarding Southern Link requires write-down of SEK 74 million
Settlement with National Road Administration regarding Southern Link requires write-down of SEK 74 million NCC and the National Road Administration's Stockholm Region have reached a definitive settlement regarding the Southern Link project in Stockholm. In accordance with the settlement, NCC will receive SEK 100 million, excluding VAT, in additional compensation. The National Road Administration has also agreed to free up suspended payments and refrain from requiring NCC to pay any delay penalties. The settlement means that the loss provision posted by NCC in its final accounts for 2001 will not be sufficient. Accordingly, an additional charge of SEK 74 million will be posted against NCC's earnings for the third quarter. In 1998, NCC was commissioned by the National Road Administration's Stockholm Region to conduct work at and for the expansion of the Southern Link. The original order was worth SEK 632 million. In addition, supplementary work amounting to approximately SEK 170 million was received. In 2002, NCC sued the National Road Administration's Stockholm Region in Stockholm District Court, demanding compensation for the additional costs incurred by the company due to the considerable delays to the project. As a result of the settlement now reached, NCC has withdrawn its lawsuit. For further information, please contact: Olle Ehrlén, President NCC Construction Sweden AB, Tel: +46 8 585 5126 or +46 70 621 02 44 Ulf Thorné, Manager Public and Media Relations, NCC AB, Tel: +46 8 585 52346 or +46 70 214 77 27 All of NCC's press releases are available on www.ncc.info NCC is one of the leading construction and property development companies in the Nordic region. NCC had in 2003 sales of SEK 45 billion, with 24,000 employees. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2004/09/14/20040914BIT20760/wkr0001.pdf