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Cheminova revises earnings outlook after US arbitration

Cheminova has downgraded its earnings outlook for the year following an arbitration decision against the company leading to a compensation award of $15.7 million to an industrial customer in the US. Cheminova was in dispute with the customer following the termination of a commercial supply contract in August 2010. The company’s position was that the suit was groundless as the contract had been terminated due to incurable breaches by the customer. But in accordance with the contract, the arbitration decision is final and binding for both parties.



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