Impact on Boliden from political strike in Finland

Rhea-AI Summary

A political strike in Finland indirectly impacts Boliden, leading to an estimated SEK 300 million negative effect on operating profit in the first quarter of 2024. Boliden aims to minimize customer impact with SEK 200 million due to delayed deliveries expected to be recovered in the second quarter. The strike may cause a SEK 500 million negative cash flow impact in Q1.

STOCKHOLM, March 11, 2024 /PRNewswire/ -- A number of trade unions have announced a two-week long political strike in Finland starting March 11, 2024. The strike is politically motivated and does not involve Boliden as a negotiating party. The direct industrial actions at Boliden's operations are limited, however, Boliden is heavily indirectly affected by industrial actions in Finland's harbors and railroad system. Boliden will try to limit the impact on its customers.

If the strike goes through as announced, it is estimated that Boliden's operating profit in the first quarter 2024 will be negatively affected by approximately SEK 300 million, whereof SEK 100 million are due to reduced production and SEK 200 million due to delayed deliveries to customers. The SEK 200 million due to delayed deliveries is a temporary effect and is expected to be regained during the second quarter. The negative cash flow impact during the first quarter is estimated to SEK 500 million, mainly due to a temporary increase of working capital.  

For further information, please contact:
Klas Nilsson, Director Group Communications, phone: +46 70-453 65 88 
klas.nilsson@boliden.com  

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Press release

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SOURCE Boliden

FAQ

How is Boliden affected by the political strike in Finland?

Boliden is indirectly affected by the strike, with an estimated negative impact of SEK 300 million on operating profit in the first quarter of 2024.

What is the expected impact on Boliden's operating profit due to the strike?

It is estimated that Boliden's operating profit in Q1 2024 will be negatively affected by approximately SEK 300 million, with SEK 100 million due to reduced production and SEK 200 million due to delayed deliveries to customers.

How much is the temporary negative cash flow impact expected to be for Boliden in the first quarter?

The negative cash flow impact during the first quarter is estimated to be SEK 500 million for Boliden, mainly due to a temporary increase in working capital.