2023-05-26 07:32:24 ET
French tire manufacturer Michelin ( OTCPK:MGDDY ) has found a suitor for its Russian business more than a year after suspending operations in the country.
The company has moved to sell the business to Power International Tires after a review by “competent local authorities,” allowing for the preservation of hundreds of jobs. That said, a modicum of job cuts associated with the sale were unavoidable, according to the company.
“All costs relating to the cessation of activities in Russia have been accrued for in 2022. The Group will, however, recognize in May 2023 an expense estimated at a few tens of millions of euros corresponding to currency translation differences,” the disclosure explains. “This expense will be recognized in Operating income, not allocated to the segments, therefore with no effect on the Group's 2023 guidance.”
Shares of Michelin ( OTCPK:MGDDF ) edged modestly higher during trading on Friday.
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Michelin offloads Russian business to domestic tire distributor