AB Volvo takes $423 million provision amid Russia-Ukraine uncertainty
2022.04.08 09:20
FILE PHOTO: The logo of Volvo is seen at the Volvo Trucks plant outside Kaluga, Russia March 31, 2022. Picture taken March 31, 2022. REUTERS/Evgenia Novozhenina/
STOCKHOLM (Reuters) – AB Volvo will keep provisions worth 4 billion crowns ($423.23 million) and expects a negative impact on its first-quarter operating income this year due to uncertainty caused by the Russia-Ukraine war, the Swedish truck maker said on Friday.
Volvo has suspended all sales, service and production in Russia, which last year stood for about 3% of the company’s net group sales.
“The Volvo Group has total assets of approximately 9 billion crowns related to Russia, of which approximately 6 billion crowns is cash items that could be materialized over the coming years,” it said in a statement.
“In the first quarter 2022, assets amounting to approximately 4 billion crowns will be provided for and have a negative impact on operating income, primarily in the Financial Services segment,” the company said.
($1 = 9.4512 Swedish crowns)
