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• Andritz 2007
• Customer Projects
• Sustainability and Corporate Responsibility
• Business Areas
• Andritz Automation
• Human Resources
• Manufacturing, Procurement, and Quality
• Annual Financial Report 2007
  • Status Report
  • Statement by the Executive Board
  • Report of the Supervisory Board
  • Auditor's Report
  • Consolidated Balance Sheet
  • Consolidated Income Statement
  • Consolidated Cash Flow Statement
  • Consolidated Statement of Shareholders' Equity
  • Notes to the Consolidated Financial Statements
    • A. General
    • B. Summary of Significant Accounting Policies
    • C. Acquisitions
    • D. Accounting and Valuation Principles
    • E. Segments
    • F. Notes to the Consolidated Balance Sheet
    • G. Notes to the Consolidated Income Statement
    • H. Segment Information
    • I. Notes to the Consolidated Cash Flow Statements
    • J. Financial Instruments
    • K. Leases
    • L. Commitments
    • M. Contingent Liabilities
    • N. Related Party Transactions
    • O. Subsequent Events
    • P. List of Consolidated Subsidiaries
  • Financial Statement of Andritz AG
• Locations of the Andritz Group
• Glossary
• Disclaimer

 

M. Contingent Liabilities

Various legal actions and claims are pending or may be asserted in the future against Group companies from claims incidental to the ordinary course of business. These most typically consist of project related claims and disputes. Although the resolution of these matters within established reserves can not be guaranteed the Management believes, subject to the following paragraph, that the outcome of these legal actions and claims, individually or in the aggregate, will not have a material adverse effect on the Company’s business, liquidity, result of operations or financial position.

As of December 2007, Andritz Inc., as subsidiary of the Company, was one of many defendants in a total of approximately 26 asbestos cases in the US. Nearly all of these cases involve claims by multiple plaintiffs against multiple defendants. In aggregate the cases involve a total of approximately 608 plaintiffs. Andritz Inc. does not believe it should be found liable in connection with any of these claims and plans to vigorously defend each claim. As the vast majority of claims against Andritz Inc. have not as yet been stated with specificity it is not possible for Andritz Inc. to assess the full extent of its potential exposure to asbestos litigation. Andritz Inc. has not had a judgment of liability rendered against it in connection with an asbestos claim. Approximately 90 asbestos cases and about 22,956 claims against Andritz have been dismissed, and one claim has been resolved without Andritz incurring any significant liability or expense. It is possible that the final adjudication or settlement of such proceedings has a material adverse effect on the Company’s business, results of operations and financial condition. The Group believes it has potential sources of recovery including insurance and/or contractual indemnities from the previous owners of the relevant businesses of Andritz Inc. Whether any indemnities and/or insurance will apply depends on the particular facts of each plaintiff’s claim. Because the claims against Andritz in most cases have not as yet been stated with specificity and for the reasons set forth below, it is not possible for the Group to assess the amount of its expected recovery. Certain indemnitors or insurers have contested and others may contest the applicability of the indemnity or insurance in question, and there can be no assurance that the Group will prevail in any dispute relating to the applicability of such insurance or indemnity to existing or future claims against a Group company.