Tokyo, Japan, May 13, 2014 (Australian Eastern Standard Time) - NSK Australia Pty. Ltd., a wholly owned subsidiary of NSK Ltd. (NSK; Headquarters: Tokyo, Japan; President and CEO: Norio Otsuka), was ordered by the Federal Court of Australia to pay a pecuniary penalty of A$ 3 million (approximately 290 million yen) for contraventions of the Australian competition law in connection with certain sales of bearings in Australia.
NSK and NSK Australia Pty. Ltd. have been fully cooperating with the Australian Competition and Consumer Commission's investigation in certain sales of bearings in Australia. Following an internal investigation into the alleged conduct, NSK negotiated with the Australian Competition and Consumer Commission and reached a settlement. As a result, the Federal Court of Australia made orders which were agreed to between NSK Australia Pty. Ltd. and the Australian Competition and Consumer Commission, including imposing the above penalty.
We express our sincere regret for the concern this matter has caused our shareholders, customers, and other stakeholders. NSK and its subsidiaries regard the situation with the utmost seriousness and have taken and will continue to take comprehensive measures with the help of outside experts and others to ensure strict compliance with all applicable laws and regulations during our corporate activities. We will devote every effort to restoring the trust of all stakeholders and the public.
NSK does not revise its consolidated business forecast for the fiscal year ending March 31, 2015, based on the imposition of the above penalty.