Inventory impairment in Sandvik Materials Technology
In compiling the figures for the October report, a need became evident to recognize an impairment loss on the value of inventory in the Sandvik Materials Technology business area.
The negative effect of the impairment loss on operating earnings is estimated at current nickel price levels and tied-up capital to amount to about SEK 400 to 500 M during the fourth quarter of 2007.
The impairment loss is based on the rapid decline in nickel prices in recent months in combination with delays in orders and deliveries of standard products to inventory customers.
Sandviken, 13 November 2007
Sandvik AB; (publ)