ASE gains $247M in facility fire settlement

June 28, 2006 – Semiconductor packaging service provider Advanced Semiconductor Engineering Inc. have reached a final settlement with nine insurance companies regarding a fire at its facilities in Chung-Li in May 2005.

The total settlement for damages related to the fire amounts to about $246.5 million, of which insurers paid roughly $70.3 million in mid-October, leaving roughly $176 million to be paid. In addition, the company’s ASE Test Ltd. unit will receive a settlement for insured loss, minus deductibles, of about $26 million, of which the coinsurers already had paid $400,000 million. ASE says it will now record a $104 million gain in non-operating income in its fiscal 2Q06; its ASE Test Ltd. unit will record a $25 million gain.

ASE said it is still repairing certain assets damaged by the fire, and is determining how much of the losses originally recognized in connection with the fire will be reversed as a result of such repairs. The overall impact to earnings will be released with the company’s 2Q06 consolidated financial results on August 2.


Easily post a comment below using your Linkedin, Twitter, Google or Facebook account. Comments won't automatically be posted to your social media accounts unless you select to share.