14.10.2016 07:00:42
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Ratos: Impairment of book values in Ratos
This information is information that Ratos AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 07.00 CET on 14 October 2016.
Impairment of book values in Ratos
In conjunction with the publication of its third-quarter report, Ratos will implement considerable impairments of book values. In total, it is expected that the impairment of goodwill and shares in associates attributable to owners of the parent will amount to approximately SEK 1.7 billion.
The impairment is attributable to the portfolio companies of Aibel, AH Industries, Biolin Scientific, Euromaint and Jøtul. The total impairment attributable to the owners of the parent is expected to amount to approximately SEK 1.7 billion, of which approximately SEK 1.1 billion is attributable to the impairment of Aibel's book value*. The exact amount of the impairment will be established in the third-quarter report and will be charged to the Ratos Group's net earnings.
"Some of our companies are operating under tough market conditions and are showing a weak earnings trend. To reflect the companies' market conditions, we are adapting our book values. As active owners, we work continuously with each company management to strengthen each company's long-term competitiveness. The impairment does not affect the applicable full-year forecasts for the portfolio's operative earnings trend, which is expected to be somewhat lower than the preceding year's result, adjusted for the size of Ratos's holding," says Lars Johansson, Acting CEO of Ratos.
For further information, please contact:
Elin Ljung, Head of Corporate Communications Ratos, 08-700 17 20, elin.ljung@ratos.se
Lars Johansson, Acting CEO Ratos, +46 8 700 17 00, lars.johansson@ratos.se
*In accordance with IFRS, minority shares (non-controlling interests) are also charged to the impairment of the Ratos Group's net earnings. Impairment attributable to the minority shares is expected to amount to approximately SEK 600m.
Financial calendar from Ratos:
Interim report January-September 2016 10 November 2016
Ratos is an investment company that owns and develops unlisted medium-sized Nordic companies. Our goal as an active owner is to contribute to long-term and sustainable business development in the companies we invest in and to make value-generating transactions. Ratos's portfolio consists of 21 medium-sized Nordic companies and the largest segments in terms of sales are Construction, Industrials and Consumer goods/Commerce. Ratos is listed on Nasdaq Stockholm and has a total of approximately 16,000 employees.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Ratos via Globenewswire
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