Oct 28 2009
KHD Humboldt Wedag International Ltd. announced today that it has decided to remove approximately $100 million in contracts at risk from backlog and order intake.
KHD has completed a full analysis and review of all of its contracts at risk and as a result, KHD has decided to eliminate the category of "contracts at risk". KHD undertook this analysis of all of the contracts in this category and determined that the contracts either would not be proceeding, in which case the contracts were officially cancelled and removed from the order backlog, or would be proceeding, either as originally proposed or with a change of scope, in which case the contracts remained in the order backlog and no accounting entries were made for such contracts. After consultations with our customers and our Board of Directors, we believe that it is prudent at this time to remove these contracts from our order backlog and order intake.
KHD Humboldt Wedag International Ltd., CEO Jouni Salo commented, "KHD's primary consideration in conducting the analysis of the contracts at risk was whether there was any uncertainty as to whether the contracts would proceed. If such uncertainty existed, the contracts were classified as closed contracts and treated accordingly. KHD will continue to have dialog with these customers as they re-evaluate their projects."
Source: https://www.khd.com/