Sandvik to book charges of $471 million in third quarter
Swedish metal-cutting tools and mining gear maker Sandvik 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 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.
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.
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.
Russia accounted for 3.5% of Sandvik’s sales in 2021.
