PC Panasonic Corp.

Panasonic Corp. (PC, 6752.TO) and a Whirlpool Corp. (WHR) subsidiary will plead guilty to conspiring to fix prices on refrigerant compressors and will pay $140.9 million in criminal fines, the U.S. Justice Department announced Thursday.

Whirlpool unit Embraco North America Inc., based in Suwanee, Ga., will pay a $91.8 million criminal fine, while Panasonic will pay $49.1 million.

Prosecutors said the price-fixing conspiracy took place from as early as October 2004 until December 2007.

They alleged the two companies, along with other unnamed corporations and individuals, held meetings and conversations to fix prices on household compressors and light commercial compressors. The companies also exchanged information to monitor and enforce the agreed-upon prices, prosecutors said.

Refrigerant compressors are used to cool refrigerators and freezers.

Charging documents filed by prosecutors offered no details on how much consumers might have overpaid due to the price-fixing scheme.

Plea agreements in the case, however, indicate that, during the time period of the allegations, Embraco's compressor sales affecting U.S. customers totaled at least $586 million, while Panasonic's sales affecting U.S. consumers totaled at least $261 million.

Panasonic said in a written statement that it is fully cooperating in the investigation and that the fine wouldn't materially affect its financial outlook for the fiscal year.

"It is the policy of Panasonic Corporation to comply with all applicable laws and regulations, including antitrust regulations," the company said. "Panasonic takes this matter seriously and will make every effort to maintain the public's confidence."

In a statement, Whirlpool said the fine will result in a $1.20-a-share charge for the third quarter, results of which will be released Oct. 27. The release didn't specifically address the allegations.

Thursday's charges were the Justice Department's first in this ongoing investigation. The department said last year that it was investigating possible antitrust violations in the multibillion-dollar refrigeration-compressor industry, in conjunction with international authorities.

The case was filed in a federal court in Detroit.

Embraco operates as a separate company, supplying compressors for Whirlpool's brands as well as other appliance makers. Embraco has annual sales of about $1.5 billion and is estimated to control as much as 25% of the global market for refrigerator compressors.

Whirlpool announced last year that Embraco would pay $56.5 million over five and a half years to end a similar antitrust investigation by Brazilian authorities.

-By Brent Kendall, Dow Jones Newswires; 202-862-9222; brent.kendall@dowjones.com

(Bob Tita contributed to this article.)

Grafico Azioni Panasonic (NYSE:PC)
Storico
Da Giu 2024 a Lug 2024

Grafico Azioni Panasonic (NYSE:PC)
Storico
Da Lug 2023 a Lug 2024