CLEVELAND (Feb. 9, 2009)—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 a marine hose cartel.
Parker said there was no indication of this potential liability when Parker ITR was acquired in 2002. Parker also said it fully cooperated with the investigation.
The European Commission is imposing a fine of $33.4 million on Parker ITR as a penalty for violating EU competition laws commencing in 1986. The business unit had revenues of about $15 million when it was acquired.
Tom Piraino, vice president, general counsel and secretary for Parker, said the problems that were uncovered started long before Parker acquired the small Italian company and were concealed from Parker.
He said Parker is disappointed in the magnitude of the fine because the company responded quickly to the problems and cooperated with the EC investigation.
Particularly disappointing, he said, is the portion of the fine for the period prior to Parker's acquisition of the business.