The emblem of Volvo is seen on the Volvo Vehicles plant exterior Kaluga, Russia March 31, 2022. Image taken March 31, 2022. REUTERS/Evgenia Novozhenina/
STOCKHOLM, April 8 (Reuters) – AB Volvo (VOLVb.ST) expects its first-quarter working revenue to take successful from uncertainty attributable to the Russia-Ukraine warfare and can put aside provisions price 4 billion crowns ($423.2 million) to cowl that, the Swedish truck maker stated on Friday.
Russia’s six-week lengthy incursion in Ukraine has seen greater than 4 million folks flee overseas, killed or injured 1000’s, turned cities into rubble and led to sweeping sanctions on its leaders and corporations. learn extra
“The Volvo Group has complete belongings of about 9 billion crowns associated to Russia, of which about 6 billion crowns is money objects that might be materialized over the approaching years,” it stated in an announcement.
“Within the first quarter 2022, belongings amounting to roughly 4 billion crowns can be supplied for and have a damaging influence on working revenue, primarily within the Monetary Companies phase,” it added.
Volvo in February suspended all gross sales, service and manufacturing in Russia, which final 12 months accounted for about 3% of its internet group gross sales of about 372.2 billion crowns.
The corporate’s manufacturing website in Kaluga, close to Moscow, has a capability to provide 15,000 automobiles per 12 months and employed over 600 folks.
Shares within the firm have misplaced 1 / 4 of their worth for the reason that begin of the 12 months as shortages of parts and freight capability led to manufacturing disruptions and elevated prices, denting income.
($1 = 9.4512 Swedish crowns)
Reporting by Johan Ahlander and Supantha Mukherjee in Stockholm; Enhancing by Sherry Jacob-Phillips and Jan Harvey
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