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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): February 9, 2005
ABM Industries Incorporated
(Exact name of registrant as specified in its charter)
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Delaware
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1-8929
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94-1369354 |
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(State or other jurisdiction
of incorporation)
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(Commission File
Number)
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(IRS Employer
Identification No.) |
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160 Pacific Avenue, Suite 222, San Francisco, California
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94111 |
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(Address of principal executive offices)
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(Zip Code) |
Registrants telephone number, including area code (415) 733-4000
Not Applicable
(Former name or former address if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Item 8.01 Other Events
On February 9, 2005, the United States Court of Appeals for the Second Circuit granted summary
judgment in favor of ABM Industries Incorporated (ABM) against Zurich American Insurance Company
on ABMs insurance claims for business interruption losses resulting from the World Trade Center
(WTC) disaster. ABMs business interruption losses and other covered losses are eligible for
coverage up to the policy maximum of $127 million. The press release discussing the ruling is
attached as an exhibit to this Form 8-K.
Item 9.01 Financial Statements and Exhibits.
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99.1
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Press release dated February 10, 2005, announcing the United States Court of
Appeals for
the Second Circuits grant of summary judgment in favor of ABM against Zurich American Insurance
Company on ABMs insurance claims for business interruption losses resulting from the World Trade
Center (WTC) disaster. |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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ABM INDUSTRIES INCORPORATED
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Dated: February 10, 2005 |
By: |
/s/ Linda S. Auwers
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Linda S. Auwers |
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Senior Vice President and General
Counsel |
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EXHIBIT INDEX
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99.1
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Press release dated February 10, 2005, announcing the United States Court of
Appeals for
the Second Circuits grant of summary judgment in favor of ABM against Zurich American Insurance
Company on ABMs insurance claims for business interruption losses resulting from the World Trade
Center (WTC) disaster. |
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exv99w1
ABM WINS SECOND CIRCUIT SUMMARY JUDGMENT
FOR BUSINESS INTERRUPTION COVERAGE IN WORLD TRADE CENTER CLAIM
SAN FRANCISCO, CA February 10, 2005 ABM Industries Incorporated (NYSE: ABM) announced today
that the United States Court of Appeals for the Second Circuit had granted summary judgment in
favor of ABM on the Companys insurance claims for business interruption losses resulting from the
World Trade Center (WTC) disaster.
The Appeals Court also ruled that ABM is entitled to recovery for the extra expenses it
incurred after 9/11, which include millions of dollars related to increased unemployment claims and
costs associated with the redeployment of WTC personnel at other facilities. The Appeals Court
rejected the arguments of Zurich American Insurance Co. (Zurich) to limit ABMs business
interruption coverage and returned the case to the Southern District of New York for determination
of appropriate additional compensation under the policy.
We are very pleased with the Courts ruling, said Linda S. Auwers, ABM Senior Vice President
& General Counsel. Since the Court of Appeals has established our business interruption coverage
and ruled on several of the cases central issues, we look forward to a fair and timely resolution
of our claims with Zurich.
ABM will continue to pursue its claims against Zurich. Under the policy, coverage for ABMs
business interruption and other related losses is capped at $127 million. ABM believes its losses
exceed $100 million.
ABM had commercial insurance policies with Zurich covering business interruption, property
damage and other losses related to the WTC complex. At the time, the WTC was the Companys largest
single job-site with annual sales of approximately $75.0 million (3% of the Companys consolidated
sales for 2001).
In December 2001, Zurich filed a Declaratory Judgment Action in the Southern District of New
York claiming the loss of the business profit fell under the policys contingent business
interruption sub-limit of $10 million. On June 2, 2003, the court ruled on certain summary
judgment motions in favor of Zurich. Subsequent to the June 2003 ruling, additional rulings by the
court limited ABMs recourse under the policy to the amounts paid plus additional amounts related
to physical property and financial records of the Company located on the WTC premises.
As of October 31, 2004, Zurich had paid ABM two partial settlements totaling $13.8 million, of
which $10.0 million was for business interruption under the contingent business interruption
sub-limit and $3.8 million for property damage, which substantially settled the property portion of
the claim.
ABM Industries Incorporated is among the largest facility services contractors listed on the
New York Stock Exchange. With fiscal 2004 revenues in excess of $2.4 billion and more than 73,000
employees, ABM provides janitorial, parking, security, engineering, lighting and mechanical
services for thousands of commercial, industrial, institutional and retail facilities in hundreds
of cities across the United States and British Columbia, Canada. The ABM Family of Services
includes ABM Janitorial, Ampco System Parking, ABM Security Services, which includes American
Commercial Security Services (ACSS) and Security Services of America (SSA), ABM Engineering, Amtech
Lighting, CommAir Mechanical and ABM Facility Services.
Cautionary Statement Under the Private Securities Litigation Reform Act of 1995. This press release
contains forward-looking statements that set forth managements anticipated results based on
managements plans and assumptions. Any number of factors could cause the Companys actual results
to differ materially from those anticipated. These risks and uncertainties include, but are not
limited to subsequent adverse judicial rulings in the Companys World Trade Center insurance
litigation and each of the risks set forth in the Companys 2004 Annual Report on Form 10-K.
# # #
Contact:
Linda Auwers
Senior Vice President & General Counsel
ABM Industries Incorporated
415-733-4000 (or e-mail lauwers@abm.com)
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