Parker Hannifin may appeal over marine hose fine

ERJ staff report (DS)

Cleveland, Ohio -- Parker Hannifin Corp. said it is evaluating all options, including an appeal , following a fine imposed by the European Commission over a subsidiary's participation in the marine hose cartel. The subsidiary, Parker ITR was acquired in 2002, and Parker said there was no indication of this potential liability when the unit was acquired. Parker said it had fully cooperated with the investigation.

The European Commission (EC) is imposing a fine of 25.6 million euros on Parker ITR, as a penalty for violating EU competition laws commencing in 1986. The business unit had revenues of approximately $15 million when acquired in 2002.

Tom Piraino, Vice President, General Counsel and Secretary for Parker said, "The problems that were uncovered started long before Parker acquired this small, Italian company and were concealed from Parker." He continued, "We are disappointed in the magnitude of the fine imposed by the EC, particularly given our quick response to the problems we encountered and cooperation with the EC investigation, which underscores our commitment to ethical business practices and sound stewardship. Particularly disappointing is the portion of the fine that the EC chose to impose for the period prior to Parker's acquisition of the business.

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Press release from Parker