Subject: ACC
Sandvik announces a non-recurring charge for the second quarter related to Russia
SANDVIKEN, Sweden, June 29, 2022 /PRNewswire/ -- As previously communicated, Sandvik paused its business activities in Russia on February 28 due to Russia's war in Ukraine. Since then, the company has continuously been assessing and adjusting to the situation, and has taken the decision to wind down operations in Russia.
As a consequence Sandvik will record a non-recurring charge of about SEK 1 billion in the second quarter operating results (EBITA), of which SEK 0.7 billion is a write-down and SEK 0.3 billion a provision mainly relating to personnel costs. These costs will be treated as items affecting comparability. Following the write-down, total remaining assets related to Russia, excluding cash, amounted to approximately SEK 0.7 billion on May 31, 2022.
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. Depending on the progress of the wind-down procedures, additional costs may be incurred in the coming quarters.
In 2021, about 3.6 percent of Sandvik Group revenues was from Russian customers.
Stockholm, June 29, 2022
Sandvik AB
For further information, contact
Louise Tjeder
VP Investor relations
phone: +46(0)70782 6374
Johannes Hellström
Press and Media Relations Manager
phone: +46(0)707211008.
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Sandvik announces a non-recurring charge for the second quarter related to Russia |
SOURCE Sandvik
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