Wincanton receives £13.7m damages

Wincanton has been awarded £13.7m following a financial dispute with a customer. The firm's 50% joint venture company - PGN Logistics - has received £27.4m from agricultural and construction equipment manufacturer Case New Holland (CNH), following an arbitration ruling.

The arbitrators held that CNH was not entitled to terminate its earlier agreement with PGN and ordered CNH to pay damages for PGN's lost profits to the end of 2005 for certain services, and to the end of 2007 for others.

However, Wincanton believes "further monies remain due" from CNH and is continuing arbitration proceedings. A decision on whether any further sums are due to PGN, a JV with an Italian logistics firm, is expected in early 2008.

A statement from Wincanton says: "It is currently expected that about £8m of Wincanton's 50% share of the £27.4m received will be applied against the group's share of the debt due from CNH."

CNH Global is the second largest manufacturer of agricultural equipment and the third largest maker of construction equipment in the world. It is supported by about 11,500 dealers in 160 countries.

The firm, which is 91% owned by the Fiat Group, is based in Amsterdam. A spokesman for Wincanton was unavailable for comment as MT went to press, but an earlier statement from the company described the outcome as "favourable".