Total impact on Boliden from political strikes in Finland in the first quarter 2024

Rhea-AI Summary

Boliden faces challenges due to political strikes affecting critical infrastructure in Finland, impacting production and profits. The strikes may lead to an estimated SEK 500 million reduction in operating profit for the first quarter of 2024, with a significant cash flow impact. Despite the setbacks, Boliden remains committed to sustainability and aims to be a leading metal provider globally.

Positive

• None.

Negative

• The ongoing political strikes in Finland have negatively impacted Boliden's production and profits, with an estimated SEK 500 million reduction in operating profit for the first quarter of 2024.
• The extended strike until March 31 is expected to further impact Boliden's operating profit, with a temporary cash flow impact of approximately SEK 1 billion during the first quarter.
• Some production disruptions are anticipated to continue into the second quarter, affecting Boliden's financial performance in the short term.

STOCKHOLM, March 22, 2024 /PRNewswire/ -- A number of trade unions in Finland have carried out political strikes during the quarter, which have affected Boliden's access to critical infrastructure such as railway and harbors. The strikes do not involve Boliden as a negotiating party, and the impact on production has been limited. If the announced extension of the ongoing strike until March 31 is carried out, the total impact on Boliden's operating profit in the first quarter 2024 is estimated to approximately SEK 500 million, whereof SEK 200 million is due to reduced production and SEK 300 million to delayed deliveries to customers. The effect due to delayed deliveries is temporary and expected to be regained during the second quarter. The negative cash flow impact during the first quarter is now estimated to approximately SEK 1 billion, which is higher than previously communicated following the now extended strike. Some impact on production is also expected during the second quarter, based on currently assumed circumstances.

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

Boliden's vision is to be the most climate-friendly and respected metal provider in the world. We are Europe's producer of sustainable metals and, guided by our values care, courage and responsibility, we operate within exploration, mines, smelters and recycling. We are about 6,000 employees and have annual revenues of approximately SEK 80 billion. The share is listed in the Large Cap segment of NASDAQ OMX Stockholm.

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Press release

 

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SOURCE Boliden

FAQ

How have political strikes in Finland affected Boliden's operations?

The strikes have Boliden's access to critical infrastructure like railway and harbors, resulting in reduced production and delayed deliveries to customers.

What is the estimated impact on Boliden's operating profit in the first quarter of 2024?

The strikes are estimated to cause a reduction of approximately SEK 500 million in operating profit, with SEK 200 million due to reduced production and SEK 300 million to delayed deliveries.

How much is the negative cash flow impact estimated to be during the first quarter?

The negative cash flow impact is now estimated to be approximately SEK 1 billion, higher than previously communicated due to the extended strike.

What is Boliden's vision as a company?

Boliden aims to be the most climate-friendly and respected metal provider globally, focusing on sustainable metal production guided by the values of care, courage, and responsibility.