Finland: About EUR 1 mln of write-downs of Raisio Plc concern the Feed & Malt segment
Raisio plc’s balance sheet items based on updated business plans and estimates based on those have been tested in accordance with the IFRS standards. These tests will result in write-downs of approx. EUR 21 million on fixed assets, shares and inventories, and write-downs of approx. EUR 11 million on goodwill in the financial statements for 2006. The most significant write-downs concern the goodwill of the diagnostics company and the machinery and equipment of margarine and soy-oat plants, Raisio Plc stated in a press-release on December 28, 2006.
The write-downs are divided per segment as follows: Food approx. EUR 24 million, Feed & Malt approx. EUR 1 million, Diagnostics approx. EUR 7 million.
These write-downs will reduce depreciations by approx. EUR 3 million as of 2007.
In addition, Raisio will depreciate interest-bearing receivables of approx. EUR 7 million by approx. EUR 4 million because the debtors have not been able to comply in all details with the original instalment plan. These receivables are based on sterol project started in 1990’s and afterwards ceased.
The full-year result 2006 including one-off items will be clearly lower than in the previous year (EUR -5.4 million).
CEO Matti Rihko: "The new management has evaluated business plans and estimates based on those. The tests of values of goodwill and fixed assets based on these estimates showed significant write-downs to be necessary. The most important target for Raisio in 2007 is to improve profitability. Also structural solutions to streamline Raisio’s business portfolio are evaluated. In addition, international investments will be evaluated separately."
Wstecz
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