Sandvik to book charges of SEK 5.3 bln in third quarter (updated)

Alleima AB

29/09/2022 15:02

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      Bulk of charges stem from Alleima spin-out
    

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      Additional charge for Russian exit also booked
    

  
 (Adds background)
       Sept 29 (Reuters) - Swedish metal-cutting tools and
mining gear maker Sandvik  SAND.ST  said on Thursday it will
book non-recurring charges of about 5.3 billion Swedish crowns
($471.56 million) in the third quarter.
    A capital loss of some 4.7 billion crowns stems from the
distribution of its former subsidiary Alleima  ALLEI.ST  to
shareholders, which will be reported under discontinued
operations.
        Sandvik distributed and listed its speciality steel
business on the Nasdaq Stockholm exchange on Aug. 31 of this
year, renaming it Alleima.  urn:newsml:reuters.com:*:nL8N30642K
  
    Approximately 600 million crowns of losses stem from
Sandvik's wind-down in Russia and will impact its operating
result before interest, tax and amortisation (EBITA), the
company said in a statement.
        This charge comes in addition to the already one billion
crowns that was announced in the second quarter of this year in
relation to their exit of Russia  urn:newsml:reuters.com:*:nL8N2YG1MJ 
  
        Sandvik that the process of winding down its operations
in Russia was progressing according to plan.
  
        The engineering group said on June 29 it would wind down
its Russia business after first putting it on hold on Feb. 28
following the invasion of Ukraine  urn:newsml:reuters.com:*:nL1N2V312R
  
        Russia accounted for 3.5% of Sandvik's sales in 2021.
  
($1 = 11.2392 Swedish crowns)
 (Reporting by Marie Mannes in Gdansk, editing by Terje Solsvik
and Niklas Pollard)
 ((Marie.mannes@thomsonreuters.com))