SDVKY - Sandvik announces a non-recurring charge for the second quarter related to Russia

PR Newswire

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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