Metso takes Russian write-off

Finland-based Metso Outotec, a global producer of aggregates and metals production equipment, says it has been winding down its business operations and customer contracts in Russia and the decision will cause it to declare a non-recurring charge on its balance sheet that is expected to total about 150 million euros ($150 million).

Metso Outotec says it has been conducting the withdrawal from Russia during the second quarter of this year, following the company’s disclosure in March 2022 that it would do so. At the end of March, the company had an order backlog of about $480 million in Russia. About $315 million of that was originally expected to be recognized as sales in 2022, of which approximately $215 million was to non-sanctioned customers, says the firm.

After having made deliveries worth about $67 million to non-sanctioned Russian customers during the second quarter, Metso Outotec says it has decided to make a provision for its remaining exposure in Russia. That non-recurring charge is expected to total $150 million and includes wind-down and restructuring costs. “The negative impact of the wind down in the Group’s order backlog at the end of June is approximately 380 million euros ($380 million),” states the company.

Metso Outotec says it will “continue to monitor the situation closely, as further changes are expected in the sanctions and export control restrictions, as well as in the availability of banking facilities and logistics.”