© Reuters. FILE PHOTO: A emblem of client items group Henkel is pictured earlier than its annual information convention in Duesseldorf March 8, 2012. REUTERS/Ina Fassbender
(Reuters) – Multinationals that introduced their exit from Russia, or suspension of actions there, after Moscow’s invasion of Ukraine on Feb. 24 have began to report related losses.
These are corporations, listed by sector, which have supplied value estimates associated to a short lived or everlasting halt in Russia:
APPAREL
ADIDAS
The German sportswear firm warned in March of successful to gross sales from closing in Russia, with out giving an estimate. It operates 500 shops within the nation, 1 / 4 of its complete. It additionally stated Ukraine may pose a danger to gross sales of as much as 250 million euros ($271 million), or about 1% of the group complete in 2021.
LPP
Fourth-quarter outcomes of LPP, Poland’s greatest trend retailer, have been hit with a 335 million zloty ($78 million) write-down, masking closure of its shops in Russia. In 2021/2022, Russia was LPP’s second-biggest market after Poland, constituting 19.2% of its full-year gross sales income. LPP sees the suspension of enterprise in Ukraine and shutting shops in Russia costing 25% of income.
TJX (NYSE:) U.S.-based trend retailer TJX stated it might promote its 25% stake within the Russian low-cost attire store chain Familia. The stake was valued at $186 million on the finish of January, decrease than the $225 million TJX paid for it in 2019. TJX stated it’d must document an impairment because of the divestiture if the honest worth of the Familia funding declines under its carrying worth on the steadiness sheet.
AUTOMAKERS
RENAULT Renault (EPA:) stated in March it thought-about a 2.2 billion-euro ($2.38 billion) non-cash writedown to replicate the potential prices of suspending operations in Russia. Misplaced gross sales accounted for 166 million euros of income loss in Q1, though Russia remained the corporate’s second-largest market after France.
VOLVO
The Swedish truckmaker stated on April 8 it had put aside provisions value $423 million after suspending actions in Russia that amounted to three% of group gross sales.
BANKS
CITIGROUP The U.S. financial institution stated in reference to its quarterly report it sees a lack of as much as $3.0 billion from its exposures in Russia in a severely adversarial situation. Citi stated it had diminished its complete publicity to Russia since December 2021 by $2.0 billion to $7.8 billion. Probably the most international of the U.S. banks added $1.9 billion to its reserves within the first quarter to arrange for losses from direct exposures in Russia and the financial impression of the Ukraine disaster.
CREDIT SUISSE The Swiss financial institution estimated on April 20 the impression of the Russian invasion of Ukraine will value it 200 million Swiss francs ($209 million) in Q1 2022.
SOCIETE GENERALE The French financial institution stated it might stop Russia and write off 3.1 billion euros ($3.35 billion) from promoting its Rosbank unit to Interros Capital. The quantity includes a 2 billion-euro hit on Rosbank’s e book worth and the remaining is linked to the reversal of rouble conversion reserves.
UBS The Swiss financial institution stated on April 26 that Russia’s invasion of Ukraine had a price of about $100 million. UBS had additionally lower its publicity in Russia to $400 million on the finish of March, from $600 million.
CONSUMABLES
ESSITY The Swedish hygiene merchandise group stated it might document a write-down of 1.4 billion crowns ($147.66 million) after it shut down all manufacturing and gross sales in Russia in March. The corporate generated round 2% of its complete gross sales within the nation final yr, amounting to 2.8 billion crowns ($295 million).
HENKEL
The German chemical and client items firm stated in its quarterly report it foresees an impression of 1 billion euros on its full yr gross sales associated to the present geopolitical scenario.
The maker of Persil washing detergents and Pritt glue introduced in mid-April it might exit Russia, including on Friday it is usually exiting Belarus.
PHILIP MORRIS
The tobacco big took a cost of three cents per share associated to the Ukraine disaster in Q1, after discontinuing gross sales of quite a lot of Marlboro and Parliament cigarette merchandise in Russia. Philip Morris (NYSE:)’ Q1 earnings fell 3.6% to $2.32 billion, or $1.50 per share, together with the 3-cent cost. Russia generated income of greater than $1.8 billion final yr, round 6% of its international gross sales
ENERGY
EXXON MOBIL CORP
The oil big’s determination to go away Russia and discontinue oil and gasoline operations will hit earnings and oil manufacturing by between 1% and a couple of%, the corporate’s CFO stated. Exxon Mobil (NYSE:)’s Russian oil and gasoline operations have been valued at greater than $4 billion. The corporate’s first quarter outcomes included a $3.4 billion after-tax hit on its Russia Sakhalin-1 operation.
OMV
The Austrian vitality group stated on April 8 it might take a 2 billion euro hit within the first quarter from its pullback from Russia, cut up evenly between its reference to the Nord Stream 2 pipeline mission and changes to the consolidation methodology of two Russian entities.
SHELL
The world’s largest liquefied dealer will write down as much as $5 billion following its determination to exit Russia, above the $3.4 billion beforehand disclosed, the corporate stated on April 7. The rise was because of further potential impacts round contracts, writedowns of receivables, and credit score losses.
ENGINEERING & CONSTRUCTION
ALFA LAVAL
The Swedish engineering firm, which has paused all new orders in Russia, stated on April 26 that because of sanctions, orders amounting to 602 million Swedish crowns ($62 million) had been cancelled. As well as, it booked 327 million crowns of provisions to cowl varied prices associated to present contractual obligations regarding Russia.
KONECRANES
The Finnish engineering group stated it made a write-down of 79 million euros in orders from Russia within the first quarter. It additionally cancelled 32 million euros ($34.62 million) of gross sales to the nation which negatively impacted the quarter’s working revenue by about 39 million euros.
SRV The Finnish building firm stated on April 28 it had written down most of its Russian belongings and bought its holdings in Fennovoima, recording an impairment of 141.2 million euros ($148.50 million) on its steadiness sheet. Its remaining belongings in Russia are valued at 2.6 million euros ($2.73 million). Because the lower in asset values could have a big impression on SRV’s fairness and fairness ratio, the corporate introduced a programme to reorganize its financing, together with a contemplated rights situation and conversion of its unsecured fixed-interest bond.
VALMET
Valmet, the Finnish engineering group, has deemed a number of of their tasks delivered to Russia not meets the standards of a buyer contract for income recognition functions, and has because of this made a reversal of about 70 million euros to its order backlog
WARTSILA The Finnish engineering group registered a 200 million euro write-down in its Q1 monetary report because it scales down on its enterprise in Russia. The write-down consists of about 75 million euros of impairment of Voyage associated goodwill and intangible belongings, 50 million euros of impairment associated to belongings in Russia, and about 75 million euros of write-downs associated to trade-sanctioned tasks and receivables. The write-down doesn’t impression the corporate’s comparable working outcome however the actions relating to the enterprise in Russia have a detrimental impression on its operational financials.
Russia-related actions accounted for about 5% of Wartsila’s web gross sales in 2021, of which service web gross sales was about 40 million euros.
YIT
The Finnish building firm recorded an impairment of 133 million euros for the primary quarter, following the classification of the Russian companies as held on the market. YIT introduced early in April it might promote its enterprise within the nation to Etalon Group.
STREAMING SERVICES
NETFLIX
The worldwide streaming big stated on April 19 its determination to droop providers in Russia resulted within the lack of 700,000 members as the corporate misplaced subscribers for the primary time in additional than a decade.
FOOD & BEVERAGES
AB INBEV
The Belgian brewer introduced on April 22 it might promote its non-controlling stake in its Russian three way partnership AB InBev Efes. The divestiture will lead to a $1.1 billion impairment cost within the first quarter. The three way partnership has 11 breweries in Russia and three in Ukraine.
CARLSBERG
The Danish brewer stated the choice to promote its Russian enterprise would lead to a write-down of about 9.5 billion crowns ($1.4 billion). The corporate generated 10% of its income and 6% of its working revenue in Russia in 2021. It additionally stated it anticipated 300 million crowns of Ukraine impairment expenses, plus goodwill writedowns of 700 million crowns for the Central and Japanese Europe area, which incorporates Ukraine.
HEINEKEN NV The Amsterdam-based brewer determined in late March to go away Russia, concluding that possession of any enterprise there isn’t any longer sustainable or viable in present atmosphere. Heineken (OTC:) added it won’t revenue from any switch of possession and expects an impairment and different non-cash distinctive expenses of about 0.4 billion euros ($432.96 million) in complete.
MCDONALD’S
McDonald’s (NYSE:) stated in March the closure of its Russian eating places would value it about $50 million a month. The corporate operates 847 websites – of its international complete of over 38,000 – in Russia. Brokerage Piper Sandler expects the restaurant chain’s halt to operations in Russia to lead to an earnings per share hit of $1.19 in 2022.
TOY MAKERS
HASBRO
The American toy maker warned on April 19 of a possible income hit of about $100 million this yr because of its determination to pause toy shipments to Russia.
OTHER
HUSQVARNA
The Swedish gardening tools maker stated April 21 it had booked write-downs of 119 million crowns ($12.6 million) within the first quarter of 2022 because of stopping all exports and investments in Russia. In 2021, Russia accounted for 1.5% of group gross sales.
METSO OUTOTEC
The Finnish supplier of mining options, which halted deliveries to Russia in March, stated on April 21 that operative belongings associated to Russian clients of about 100 million euros ($109 million) might be in danger if is unable to wind down present contracts in a managed method. The corporate, which generated 10% of income from Russian gross sales in 2021, added it had 269 million euros of advance fee ensures tied to deliveries to Russia at end-March.
SKF
The Swedish bearings and seal maker stated on April 22 it should stop all operations in Russia and plans to divest its Russian enterprise in a managed method. The choice triggers a write-down of about 500 million Swedish crowns ($52.70 million) within the second quarter. Russian gross sales accounted for about 2% of the group’s complete gross sales in 2021.
SSAB
The Swedish steelmaker stated on April 26 considerations associated to its gross sales workplace in Russia had led to asset writedowns of 158 million Swedish crowns ($16.23 million) within the nation. The battle and sanctions additionally impacted prospects for the Fennovoima mission in Finland, the shares of which have been written down by 272 million crowns to zero in worth. SSAB has ended direct gross sales to Russia and Belarus, and discontinued new purchases of ore and coal from Russia, till additional discover.
STORA ENSO The Finnish forestry firm stated on April 25 it had divested its two sawmills and forest operations in Russia to native administration, leading to an impairment of 70 million euros ($75 million) in Q1, and triggering a further loss on transaction underneath IFRS accounting guidelines of about 60 million euros upon closing of the deal.
The corporate had beforehand stated it might cease all manufacturing and gross sales within the nation. Its Russian revenues accounted for about 3% of complete group revenues.
($1 = 0.9243 euro)
($1 = 6.8341 Danish crowns)
($1 = 4.2921 zlotys)
($1 = 0.9565 Swiss franc)
($1 = 9.7480 Swedish crowns)
