Brief: Ferronordic Says Co and Volvo CE Agree To Terminate Dealer Agreement For Russia

Ferronordic AB

29/08/2022 16:50

Aug 29 (Reuters) - Ferronordic AB  FNMA.ST :
    * FERRONORDIC AND VOLVO CE AGREE TO TERMINATE DEALER
AGREEMENT FOR
RUSSIA
    * VOLVO CE WILL PAY SEK 321M TO FERRONORDIC AS COMPENSATION
FOR
INCURRED AND POTENTIAL COSTS AND LOSSES RELATED TO TERMINATION
    * FERRONORDIC -  CO DOES NOT EXPECT TERMINATION OF DEALER
AGREEMENT PER SE TO MATERIALLY CHANGE OUTLOOK FOR FERRONORDIC IN
RUSSIA
    * CO CONTINUES TO SERVICE AND REPAIR EXISTING FLEET OF VOLVO
CE
MACHINES IN RUSSIA TO LIVE UP TO ITS COMMITMENTS TO ITS
CUSTOMERS
    * FERRONORDIC EXPECTS THAT FURTHER PROVISIONS AND POTENTIAL
IMPAIRMENTS, IN ADDITION TO ONES MADE IN Q1 AND Q2 OF 2022
    * ADDITIONAL COSTS AND PROVISIONS WILL REDUCE POSITIVE
EFFECT ON
GROUP'S RESULT IN Q3 2022, AND POSSIBLY IN FUTURE PERIODS
    * COOPERATION BETWEEN FERRONORDIC AND VOLVO CE IN KAZAKHSTAN
CONTINUES AS BEFORE
    * FERRONORDIC IS ALSO LOOKING FOR OPPORTUNITIES FOR FURTHER
COOPERATION WITH VOLVO CE AND OTHER PARTS OF VOLVO GROUP IN
OTHER MARKETS

Source text for Eikon:  ID:nWkr5tMb0c 
Further company coverage:  FNMA.ST 

 ((Reuters.Briefs@thomsonreuters.com;))