July 1 (Reuters) - Multinationals that announced their exit from Russia, or suspension of activities there, after Moscow's invasion of Ukraine on Feb. 24 have started to report associated losses.
These are firms, listed by sector, that have provided cost estimates related to a temporary or permanent halt in Russia: APPAREL
ADIDAS
The German sportswear company in March warned the closure of its about 500 stores in Russia would hit its sales, estimating the war could pose a risk to sales of up to 250 million euros ($261.08 million), about half its revenue in the region in 2021, or about 1% of the group total.
LPP
Poland's biggest fashion retailer's Q4 results were hit with a 335 million zloty ($74.47 million) write-down, covering closure of its stores in Russia, its second biggest market constituting around a fifth of its sales in fiscal 2021/2022.
On May 19, the group said it would sell its Russian company RE Trading to a Chinese consortium to exit the market after 20 years.
TJX
U.S.-based fashion retailer TJX said in March it would sell its 25% stake in the Russian low-cost apparel shop chain Familia. The stake was valued at $186 million in January, lower than the $225 million TJX paid for it in 2019, due to a decline in the Russian ruble, and the investment value could have fallen further since. TJX said it may take an impairment charge due to the sale. AUTOMAKERS
RENAULT
The French carmaker said in March it considered a 2.2 billion-euro ($2.30 billion) non-cash writedown to reflect the potential costs of suspending operations in Russia.
Lost sales accounted for 166 million euros of revenue loss in Q1, alsothough Russia remained the company's second-largest market after France.
Renault said in May it would sell its majority stake in Russia's biggest carmaker, Avtovaz, to a Russian science institute reportedly for just one rouble with a six-year option to buy it back.
VOLVO
The Swedish truckmaker said on April it had set aside provisions worth $423 million after suspending activities in Russia that amounted to 3% of group sales.
BANKS
CITIGROUP
The U.S. bank said in April it had reduced its total exposure to Russia since December by $2 billion to $7.8 billion and that it would now lose no more than $3 billion in a severely adverse scenario. It had added $1.9 billion to its reserves in Q1 to prepare for losses from direct exposures in Russia and the economic impact of the war.
CREDIT SUISSE
The Swiss bank booked 206 million Swiss francs ($215.41 million) in losses related to Russia's invasion of Ukraine in Q1.
SOCIETE GENERALE
The French bank in May closed the sale of its Russian business Rosbank to the Interros group, a firm linked to Russian oligarch Vladimir Potanin, taking a 3.2 billion-euro ($3.34 billion) net income hit from the sale.
UNICREDIT
One of Europe's banks most exposed to Russia, Italy's UniCredit booked a 1.3-billion-euro ($1.36 billion) Russia-related loan loss provision to Q1 results, covering more than 70% of the capital hit from Russian losses it sees at up to 5.2 billion euros in a worst-case scenario.
UBS
The Swiss bank said in April Russia's invasion of Ukraine had a cost it about $100 million. It had cut its exposure in Russia to $400 million at the end of March, from $600 million.
CREDIT AGRICOLE
Credit Agricole provisioned more than 500 million euros ($522.15 million) related to its Russian exposure in Q1. As of March 31, it had 3.8 billion euros of exposure to Russia, with a further 600-million-euro off-balance sheet, cross-border exposure.
RAIFFEISEN BANK INTERNATIONAL AG
The Austrian lender is assessing interest from potential buyers of its Russian unit, the country's 10th-largest bank. Options include a full or partial sale, as well as a spin-off.
It recorded 301 million euros ($314.94 million) in provisions on its businesses in Russia and Ukraine in Q1. The bank has 2.3 billion euros of on-shore exposure to Russia in equity and other capital, along with net cross-border exposure of 380 million euros as of April 29. UTILITIES & CONSUMABLES
ESSITY
The Swedish hygiene products group said it would record a write-down of 1.4 billion Swedish crowns ($136.50 million) after it shut down all production and sales in Russia in March. The company generated around 2% of its total sales in the country last year, amounting to 2.8 billion Swedish crowns.
FORTUM
The Finnish utility said it would record a pre-tax impairment of 2.1 billion euros ($2.19 billion) from its Russian operations in Q1.
Fortum plans to sell its Russian power assets by July 1, Kommersant daily reported, citing sources familiar with the situation.
HENKEL
The maker of Persil washing detergents and Pritt glue has forecast an impact of 1 billion euros ($1.04 billion) on its full-year sales related to the current geopolitical situation, along with possible write-downs related to the withdrawal from Russia and Belarus.
Its CEO said on April 29 it could "completely halt or sell (its) Russia business", after announcing its intention to exit the country on April 19.
PHILIP MORRIS
The tobacco giant took a charge of 3 cents per share related to the Ukraine crisis in Q1, after discontinuing sales of a number of Marlboro and Parliament cigarette products in Russia.
Russia generated revenue of more than $1.8 billion last year, around 6% of the group's global sales.
ENERGY
BP
The oil and gas giant recorded a $24 billion writedown in Russia in Q1. The non-cash writedown of its stakes in Rosneft and two other joint ventures pushed the company into a headline loss of $20.4 billion in the quarter.
EQUINOR
Norway's Equinor stopped trading in Russian oil in March, in addition to shutting down its operations in the country. The company recognised net impairments of $1.08 billion related to assets in Russia in Q1.
It exited its Russian oil and gas joint ventures in May, transferring assets to state-owned Rosneft, its long-term partner.
EXXON MOBIL CORP
The oil giant's decision to leave Russia and discontinue oil and gas operations will hit earnings and oil production by between 1% and 2%, the company's CFO said.
Exxon Mobil's Russian oil and gas operations were valued at more than $4 billion. The company's Q1 results included a $3.4 billion after-tax hit on its Russia Sakhalin-1 operation.
OMV
The Austrian energy group said in April it would take a 2 billion euro ($2.09 billion) hit in Q1 from its pullback from Russia, split evenly between its connection with the Nord Stream 2 pipeline project and adjustments to the consolidation method of two Russian entities.
SHELL
The world's largest liquefied natural gas trader will write down up to $5 billion following its decision to exit Russia, the company said in April. The increase was due to additional potential impacts around contracts, writedowns of receivables, and credit losses.
ENGINEERING & CONSTRUCTION
ALFA LAVAL
The Swedish engineering company, which has paused all new orders in Russia, said in April that due to sanctions, orders amounting to 602 million Swedish crowns ($58.69 million) had been cancelled. In addition, it booked 327 million Swedish crowns of provisions to cover various costs related to existing contractual obligations concerning Russia.
KONECRANES
The Finnish engineering group said it made a write-down of 79 million euros ($82.50 million) in orders from Russia in Q1. It also cancelled 32 million euros of sales to the country which negatively impacted the quarter's operating profit by about 39 million euros.
NIBE INDUSTRIER
The Swedish heating technology company decided to close its Russian operations, which has negatively impacted its Q1 operating profit with a one-off write-down of about 114 million Swedish crowns ($11.11 million).
SRV
The Finnish construction company said in April it had written down most of its Russian assets and sold its holdings in Fennovoima, recording an impairment of 141.2 million euros ($147.46 million) on its balance sheet.
Its remaining assets in Russia are valued at 2.6 million euros.
SIEMENS
The Munich-based engineering and tech firm said in May it will quit the Russian market, taking a 600 million euro ($630 million) hit to its business during Q2, with more costs to come.
VALMET
The Finnish engineering group deemed several of its projects delivered to Russia no longer meets the criteria of a customer contract for revenue recognition purposes, and has as a result made a reversal of about 70 million euros ($73.10 million) to its order backlog.
WARTSILA
The Finnish engineering group registered a 200-million-euro ($208.86 million) write-down in its Q1 report as it scales down on business in Russia.
The write-down does not impact the company's comparable operating result but the actions regarding the business in Russia have a negative impact on its operational financials.
Russia-related activities accounted for about 5% of Wartsila's net sales in 2021, of which service net sales was about 40 million euros.
YIT
The Finnish construction company recorded an impairment of 133 million euros ($138.89 million) for Q1. It said early in April said it would sell its business in the country to Etalon Group.
STREAMING SERVICES
NETFLIX
The global streaming giant said in April its decision to suspend services in Russia resulted in the loss of 700,000 members as the company lost subscribers for the first time in more than a decade.
FOOD & BEVERAGES
AB INBEV
The Belgian brewer said in April it would sell its non-controlling stake in its Russian joint venture AB InBev Efes, which has 11 breweries in Russia and three in Ukraine. The divestiture resulted in a $1.1 billion impairment charge in Q1.
CARLSBERG
The Danish brewer said the decision to sell its Russian business would result in a write-down of about 9.5 billion Danish crowns ($1.34 billion). The company generated 10% of its revenue and 6% of its operating profit in Russia in 2021.
It also said it expected 300 million crowns of Ukraine impairment charges, plus goodwill writedowns of 700 million Danish crowns for the Central and Eastern Europe region, which includes Ukraine.
HEINEKEN NV
The Amsterdam-based brewer decided in late March to leave Russia, concluding that ownership of any business there is no longer sustainable or viable in current environment.
Heineken said it would not profit from any transfer of ownership and expects an impairment and other non-cash exceptional charges of about 0.4 billion euros ($417.72 million)in total.
MCDONALD'S
The world's largest burger chain decided to sell all its restaurants in Russia in May and will take a related non-cash charge of up to $1.4 billion related to the sale.
TOY MAKERS
HASBRO
The American toy maker warned in April of a potential revenue hit of about $100 million this year due to its decision to pause toy shipments to Russia.
OTHER
HUSQVARNA
The Swedish gardening equipment maker said in April it had booked write-downs of 119 million Swedish crowns ($11.60 million) in Q1 after stopping all exports and investments in Russia. In 2021, Russia accounted for 1.5% of group sales.
AP MOELLER-MAERSK
The Danish shipping group said it recorded a negative impact of $718 million on its Q1 operating profit. The impact on EBIT in specific segments was $162 million in Ocean, $53 million in Logistics & Services and $485 million in Terminals.
Maersk said in March it would sell all its assets in Russia, including its 30.75% stake in Russian port operator Global Ports Investments.
MARUBENI
The Japanese trading house halved its net exposure to Russia as of March 2022 to 12.3 billion yen ($90.53 million) due to a writedown of its stake in Russia's Sakhalin-1 oil project.
The chief executive said Russia accounted for less than 0.5% of its total overseas exposure of 2.7 trillion yen. In April, the company said it would freeze new transactions in Russia, including those not subject to sanctions.
METSO OUTOTEC
The Finnish provider of mining solutions, which halted deliveries to Russia in March, said in April operative assets related to Russian customers of about 100 million euros ($104.43 million) could be at risk if is unable to wind down existing contracts in a controlled way.
The company, which generated 10% of revenue from Russian sales in 2021, added it had 269 million euros ($280.92 million)of advance payment guarantees tied to deliveries to Russia at end-March.
SKF
The Swedish bearings and seal maker said in April it would cease all operations in Russia and plans to divest its Russian business in a controlled manner. The decision triggers a write-down of about 500 million Swedish crowns ($48.75 million) in Q2. Russian sales accounted for about 2% of the group's total sales in 2021.
SSAB
The Swedish steelmaker said in April concerns related to its sales office in Russia had led to asset write-downs of 158 million Swedish crowns ($15.40 million) in the country. The war and sanctions also impacted prospects for the Fennovoima project in Finland, the shares of which were written down by 272 million Swedish crowns to zero in value.
SSAB has ended direct sales to Russia and Belarus, and discontinued new purchases of ore and coal from Russia, until further notice.
STORA ENSO
The Finnish forestry company divested its two sawmills and forest operations in Russia to local management in April, resulting in an impairment of 70 million euros ($73.10 million) in Q1, and triggering an additional loss on transaction under IFRS accounting rules of about 60 million euros ($62.66 million) upon closing of the deal.
The company had previously said it would stop all production and sales in the country. Its Russian revenues accounted for about 3% of total group revenues.
TEAMVIEWER
The German software company said it had stopped activities in Russia and Belarus and expected a negative impact on billings of around 1% going forward from the halt.
NOKIAN TYRES
Finland's Nokian Tyres announced on June 28 plans for a "controlled exit" from Russia, home to its largest production plant. It will evaluate different options and incur impairments of about 300 million euro in Q1. ($1 = 0.9557 euros) ($1 = 4.4987 zlotys) ($1 = 0.9563 Swiss francs) ($1 = 10.2567 Swedish crowns) ($1 = 7.1107 Danish crowns) ($1 = 135.8600 yen) (Compiled by Padraic Halpin, Marie Mannes, Agata Rybska, Antonis Triantafyllou, Patrycja Zaras and Tristan Chabba; Editing by Barbara Lewis, Susan Fenton and Milla Nissi)
