Sandvik to Book $98.5 Million Charge in 2Q Amid Wind Down of Russia Operations
June 29 2022 - 4:21AM
Dow Jones News
By Dominic Chopping
STOCKHOLM--Sandvik AB said Wednesday that it will record a
non-recurring charge of around 1 billion Swedish kronor ($98.5
million) in its second quarter operating results after deciding to
wind down its operations in Russia.
The Swedish engineering group paused its business activities in
Russia on Feb. 28 due to the war in Ukraine, but has now begun to
fully wind down its operations in the country.
Around SEK700 million of the charge is a writedown and SEK300
million a provision mainly relating to personnel costs, the company
said.
Following the writedown, total remaining assets related to
Russia, excluding cash, amounted to around SEK700 million on May
31, 2022, it added.
"The wind down process is ongoing and progressing in a
controlled way, where Sandvik seeks to act responsibly towards its
employees, and follows applicable regulations and sanctions," it
said in a statement.
"Depending on the progress of the wind down procedures,
additional costs may be incurred in the coming quarters."
In 2021, about 3.6% of Sandvik group revenue was from Russian
customers.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
June 29, 2022 04:06 ET (08:06 GMT)
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