Metso Outotec has been winding down its business operations and customer contracts in Russia during the second quarter, in line with the company’s disclosure in its January-March 2022 interim report.
At the end of March 2022, Metso Outotec had an order backlog of €479 million to Russia. Around €315 million was originally expected to be recognised as sales in 2022, of which approximately €215 million was to non-sanctioned customers at the end of March.
After having made deliveries worth €67 million to non-sanctioned Russian customers during the second quarter, Metso Outotec has decided to make a provision for its remaining exposure in Russia. The non-recurring charge is expected to total €150 million and includes the wind-down and restructuring costs.
These will be booked as a non-recurring adjustment in the company’s second-quarter financials and will have no impact on adjusted EBITA. The negative impact of the wind-down in the Group’s order backlog at the end of June is approximately €380 million.
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.
A more comprehensive update will be published in Metso Outotec’s Half-Year report on 22 July 2022.
