Inside information, Componenta reverses an impairment loss of approximately EUR 4.2 million – a one-time positive effect on the result

Componenta Corporation, Inside information, on 26 September 2023 at 12.15 p.m. EEST

 

Inside information: Componenta reverses an impairment loss of approximately EUR 4.2 million related to the production machinery and equipment of its foundry business – a one-time positive effect on the result of the 2023 financial year

Impairment loss of EUR 9.3 million were recorded on the production machinery and equipment of Componenta's foundry business based on reduced profit expectations in 2016. In its assessment in accordance with IFRS, Componenta has noted that profit expectations have improved and as a consequence the company reverses impairment loss in the amount of EUR 4.2 million. Componenta records the reversal of the impairment loss in depreciation, amortization and write-downs line item in its consolidated income statement in the third quarter of the current financial year. The non-recurring income has no effect on the company's net sales or EBITDA, which is why the company's guidance for 2023 remains unchanged.

The reversal of the impairment loss also results in a deferred tax liability of approximately EUR 0.8 million to be recorded. Simultaneously Componenta records a deferred tax asset in the same amount based on the confirmed losses regarding previous years, and thus the deferred tax liabilities related to the reversal of the impairment loss have no effect on the result.

Componenta publishes its business review for January–September 2023 on Friday 3 November 2023.

 

COMPONENTA CORPORATION

Sami Sivuranta
President and CEO

 

For further information, please contact:
Sami Sivuranta, President and CEO, tel. +358 10 403 2200
Marko Karppinen, CFO, tel. +358 10 403 2101

Distribution:
NASDAQ Helsinki
Main media
www.componenta.com

 

Componenta Corporation is an international technology company and Finland's leading contract manufacturer in the machine building industry. Sustainability and customer needs are at the core of the company’s broad technology portfolio. Componenta Corporation manufactures components for its customers, which are global manufacturers of machinery and equipment. The company’s stock is listed on Nasdaq Helsinki. www.componenta.com