AB Volvo takes $423 mln provision amid Russia-Ukraine uncertainty

"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)

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, services,s 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 are cash items that could be materialized over the coming years," it said in a statement. "In the first quarter of 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)