Sandvik to Book $98.5 Million Charge in 2Q Amid Wind Down of Russia Operations

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 [e-mail]

(END) Dow Jones Newswires

June 29, 2022 04:06 ET (08:06 GMT)

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